Business Impact

Spinoff Doctors

A company formed to commercialize Lucent’s underused technologies expands its portfolio to include British Telecom and Philips Electronics.

A Lucent Technologies venture capital spinoff-initially launched to commercialize underused technologies from the company’s labs-has secured sole rights from British Telecom and Philips Electronics to do the same job for them that it’s doing for Lucent.

An early success made this leap possible. In 2002, the Lucent spinoff, New Ventures Partners of Murray Hill, NJ, sold one of its first companies-Celiant, which took a radio amplification technology out of Lucent’s Bell Labs and developed it for next-generation cell-phone networks-for $470 million. And that meant New
Ventures Partners had cash and credibility “to talk to other corporations and say, We’ll put up the capital and do this for you too, and in return, we’d just like to have exclusive access to your labs,’” explains managing partner Andrew Garman.

British Telecom was the first to grant this access, in return for benefits such as a part of any future sale or public offering of resulting companies. In 2003, New Ventures Partners launched four new companies based on technologies from BT’s labs. One was Microwave Photonics, a Los Angeles concern developing a radio-over-fiber technology that makes it possible to expand cell-phone networks without adding base stations. Maurizio Vecchione, Microwave Photonics’ president and CEO, says New Ventures went well beyond the role of the traditional venture capital firm-most importantly, negotiating licensing agreements with BT that didn’t burden the startup with royalty payments.

This story is part of our March 2004 Issue
See the rest of the issue
Subscribe

Late last year, Philips entered into a similar agreement with New Ventures. While other companies, such as Arch Venture Partners in Chicago, specialize in building startups around technologies from large R&D organizations, New Ventures “probably has the most advanced set of processes and the deepest network of contacts,” says Henry Chesbrough, a professor in the Haas School of Business at the University of California, Berkeley. British Telecom and Philips are now tapping that network.

Want to go ad free? No ad blockers needed.

Become an Insider
Already an Insider? Log in.

Uh oh–you've read all of your free articles for this month.

Insider Premium
$179.95/yr US PRICE

More from Business Impact

How technology advances are changing the economy and providing new opportunities in many industries.

Want more award-winning journalism? Subscribe and become an Insider.
  • Insider Premium {! insider.prices.premium !}*

    {! insider.display.menuOptionsLabel !}

    Our award winning magazine, unlimited access to our story archive, special discounts to MIT Technology Review Events, and exclusive content.

    See details+

    What's Included

    Bimonthly magazine delivery and unlimited 24/7 access to MIT Technology Review’s website

    The Download: our daily newsletter of what's important in technology and innovation

    Access to the magazine PDF archive—thousands of articles going back to 1899 at your fingertips

    Special discounts to select partner offerings

    Discount to MIT Technology Review events

    Ad-free web experience

    First Look: exclusive early access to important stories, before they’re available to anyone else

    Insider Conversations: listen in on in-depth calls between our editors and today’s thought leaders

  • Insider Plus {! insider.prices.plus !}* Best Value

    {! insider.display.menuOptionsLabel !}

    Everything included in Insider Basic, plus ad-free web experience, select discounts to partner offerings and MIT Technology Review events

    See details+

    What's Included

    Bimonthly magazine delivery and unlimited 24/7 access to MIT Technology Review’s website

    The Download: our daily newsletter of what's important in technology and innovation

    Access to the magazine PDF archive—thousands of articles going back to 1899 at your fingertips

    Special discounts to select partner offerings

    Discount to MIT Technology Review events

    Ad-free web experience

  • Insider Basic {! insider.prices.basic !}*

    {! insider.display.menuOptionsLabel !}

    Six issues of our award winning magazine and daily delivery of The Download, our newsletter of what’s important in technology and innovation.

    See details+

    What's Included

    Bimonthly magazine delivery and unlimited 24/7 access to MIT Technology Review’s website

    The Download: our daily newsletter of what's important in technology and innovation

/
You've read all of your free articles this month. This is your last free article this month. You've read of free articles this month. or  for unlimited online access.