Building a startup studio, a short story “IP for Equity” (Part I)
For the past 4 years, I have been working with innovation directors of corporates, researchers and investors to create tech startups within the AI startup studio based in Paris: Anova. Initially brief, the documentation on this model has grown and I invite you to look at the work of the Global Startup Studio Network. I share with you my feedback on this model regarding the topics of Intellectual Property 💊 (Part I), team 👪 (Part II) and cash 💵 (Part III).
At the beginning of 2016, I met Jeremy Harroch who had founded Quantmetry in 2011, a data science consulting company. Over the years, Quantmetry has established itself as a recognized AI player in Europe; from around twenty data scientists in 2016, it has grown to more than a hundred today. Its success is based on its R&D strike force (more than 2,500 days per year), partnerships with public and private laboratories and its active participation in the ecosystem.
Anova’s simple idea is to create tech startups by bringing together Quantmetry and its clients :
One of our major focus is to match business challenges with a portfolio of algorithms that we have or are able to develop with Quantmetry. We then valorize this Intellectual Property by bringing it to the startup. We have identified 2 technological benefits to outsource IP in a studio model: COTS or API.
COTS (Commercial Off-The-Shelf) : it can be interesting for our clients to share a service for either (i) providing a more efficient service for non-core business or (ii) fostering the creation of an ecosystem. For example, (i) this is the strategy chosen by Shift which, by pooling insurer data, offers an anti-fraud turnkey solution that is cheaper than an in-house development for insurers. Or (ii) Cit.io, which runs a mobility data platform that models urban flows to help cities design their multi-modal transport offer.
API : it can be smart to develop a solution whose algorithmic core can benefit other industries. The idea is that the same technological block can benefit several industries and this is an opportunity to share the cost of development. For example, Snips (acquired by Sonos in 2019) developed a voice assistant that could be integrated into a lot of services (speakers, appliances or smartphone) that don’t compete with each other.
Beyond the technological stakes, we challenge strategic dimensions with our clients:
If you want to go further, I recommend the Forbes article that explains why AI is suited to a studio approach : 1) feedback on complex subjects 2) access to rare expertise and 3) algorithm portfolio.
Stay tuned for Part II (team) and III (cash), cheers. Alexandre
