Eureka’s Value Creation Model
Eureka’s business model is based on the proven success of our sister company, Big Idea Group. BIG has created and manages the world’s largest network of independent inventors (8,000 strong). Efficient operation of the network is driven by personal inventor motivation, clear financial incentives for all stakeholders and is reinforced by repeat behavior.
BIG have commercialized over 50 consumer products and attracted a dedicated base of innovation seeking clients, including Staples, Gillette, Fortune Brands, etc.
The system allows BIG to screen hundreds of raw ideas per month and direct them to the most appropriate channels. Website: www.bigideagroup.net.
Jeff Conley, President and CEO of Eureka, guided by the Eureka’s Board has refined the model for the medical industry and is deploying this unique idea discovery process and inventor network system with an initial focus on medical devices and a long-term scope on life sciences.
We are confident that a capable intermediary skilled at finding and evaluating raw ideas, developing products, establishing partnerships and negotiating consistent deal flow, will create tremendous value in the medical device and healthcare markets, where innovation is highly valued.
We employ best practices and leverage BIG’s model and database to accelerate the action of the network effect and cut from the development curve two years, millions of dollars, and significant risk. Employing this systematic discovery process with clear incentives, linked to an efficient horizontal network capable of reaching innovation where it thrives, will unleash the creative genius pent-up in the medical profession.
The ability to consistently capture and commercialize innovation in healthcare has always resulted in remarkable value creation for investors. Sponsors and investors who are passionate about the enhancement of life through innovation and the resulting value creation opportunity back Eureka. A core value of Eureka, and our stakeholders is that the medical profession represents a remarkable source of untapped capability for healthcare innovation. Jointly we are committed to unleash the pent-up potential for innovative thinking in this space.
The global thought leaders on innovation and trends in healthcare at Harvard have carefully crafted our invention selection criteria and process and continue to refine and evaluate product selection criteria on our Board of Directors. The invention discovery process is an open, fair, direct approach for Medical Inventors with the risk appropriately synchronized to the reward and offers the medical profession a viable path to market with limited time commitment. We select the medical inventions with the highest probability for commercial success and take on the financial risk of developing the idea into an actionable product.
We then commercialize the most promising products with sponsor companies, who are seeking to maintain or establish a competitive edge as innovation leaders in healthcare and medical devices with off-balance sheet R&D. We establish strong ties and long-term relationships with corporate sponsors and venture firms seeking an early window on disruptive technologies, healthcare trends and problems to be solved in medicine. In this way we are able to direct new inventions to the most appropriate channel for commercialization. We are confident there is no one, in a better positioned to identify simple opportunities for new products and the medical breakthroughs in healthcare than the medical professionals performing their daily jobs.
Finding & Refining Ideas
Cultivate Inventors and Innovations: Eureka runs well-publicized invention-evaluation events, called Invention Roadshows. In these free events, staged throughout the US, inventors privately present their ideas to an expert panel of medical device and healthcare leaders. They receive a free evaluation; fair, professional treatment; coaching; and consideration for potential licensing with corporate sponsors or venture partners. We draw inventors to our Invention Roadshows through ads, direct invitations, synchronizing the venues with important medical conferences, word of mouth recommendations and through state-of-the-art search engine marketing on the Internet.
Evaluate and Screen: The most promising two percent of ideas are ultimately pursued by Eureka. To select the best of the best, Eureka calls on a panel selected from industry experts, FDA specialists, product designers, corporate partners, practitioners and healthcare visionaries. We use proven models and rigorous frameworks developed by the thought leaders on innovation to compare, prioritize and channel the raw product ideas. Jerome H. Grossman, M.D., Director of the Healthcare Delivery Project at Harvard, Board member or trustee of Mayo Clinic, Stryker Corporation, Penn Medicine, and Eureka Medical, among others, will be chairing the panel of experts at the Invention Roadshows.
Develop and Refine: In some cases, in order to maximize an innovation’s chance for market success, Eureka will judiciously invest in development work such as prototyping, patent work, market research, clinical testing, FDA filings, and sourcing. Eureka will largely outsource these tasks, since needs will vary widely from task to task and it will allow us the flexibility to focus world-class expertise on the most important development issues. A core competency at Eureka is best-in-class project management capability.
Three Primary Strategies to Commercialize innovation
Licensing Agreements: Licensing agreements provide our inventors and Eureka with advance payments and continuous royalty streams with minimal commensurate risk. Licensing deals are most appropriate with sponsor partners who have established sales and marketing channels, a good fit with existing products, and senior managers strongly committed to a continuous flow of new innovative products at low cost with limited risk.
Direct Development and Sales to Channels: For products that fit our target criteria bulls-eye, we take the product development process to a higher level before we hand it off. It results in a product with higher contribution percentage, but with higher investment and risk. This is often the best option where a new concept is disruptive, faces fewer regulatory challenges, doesn’t neatly fit our licensing partners, and presents an opportunity that Eureka can exploit with existing resources and offers a direct path for commercialization. As clusters of products are developed, Eureka will establish operating divisions that can run as independent business units focus on specific medical segments. We also partner with venture firms to commercialize promising disruptive technologies through the proven venture model taking equity for our inventors and Eureka in the company formed to commercialize the new invention.
Corporate Services: Eureka provides sponsor clients with a variety of service options, with annual sponsorship being the most attractive. Sponsors get a right of first refusal on medical breakthroughs and simple healthcare solutions in specific target market segments that are identified continuously in our Invention Roadshows. We also provide advisory services to track important trends in healthcare delivery and new product innovation. Eureka offers Target Innovation Searches for companies looking for innovations around specific problems, to identify complimentary products to support major new technology introductions or to explore new markets at low cost with complete flexibility.
Consistently Capturing and Commercializing Innovation = Value Creation