Understanding Gap Funds Bridging the Innovation Valley of Death.pdf
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At Innovosource, we specialize in building connections between research institutions, innovators, and funders. Through our Mind the Gap initiative, we provide data, strategy, and support to over 200 gap funding programs nationwide. Our goal is to accelerate innovation by empowering institutions to launch and grow successful gap fund programs.
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Understanding Gap Funds Bridging the Innovation Valley of Death.pdf
- 1. UNDERSTANDING GAP FUNDS BRIDGING THE INNOVATION VALLEY OF DEATH Visit Our Website: www.innovosource.com Innovosource
- 2. INDUCTION In the world of innovation, particularly within research institutions and early-stage technologies, the path from discovery to market is often riddled with challenges. Among the most critical of these challenges is what's commonly referred to as the “valley of death” the precarious phase between concept validation and commercial investment. This is where Gap Funds play a vital role. Discover how gap funds help early-stage technologies cross the "valley of death" by providing critical funding and support. Learn how Innovosource empowers institutions to launch and grow successful gap funding programs.
- 3. WHAT IS A GAP FUND? A Gap Fund is a specialized source of funding that supports promising early-stage research, technologies, and startups when traditional investors or partners are not yet willing to engage. These funds are typically managed by universities, research institutions, innovation hubs, and sometimes by regional economic development groups. Rather than acting as venture capital or philanthropic donations, gap funds are designed to de-risk innovations by providing resources to validate technical feasibility, conduct proof-of-concept experiments, develop prototypes, or perform early market assessments.
- 4. WHY DO WE NEED GAP FUNDS? Innovations born in research labs and academic institutions often face a credibility or development gap. Private investors and commercial partners are hesitant to invest in projects that haven't yet demonstrated market readiness or technical validation. As a result, many high-potential technologies stall before they ever reach the public. Gap funds bridge this divide by supplying the critical capital needed to move projects forward. This support boosts a technology's commercial appeal, making it more attractive to industry partners, venture capitalists, and government grant agencies.
- 5. KEY FEATURES OF EFFECTIVE GAP FUNDS Targeted Deployment: Funds are often limited and strategically allocated based on potential for commercialization or societal impact. Expert Guidance: Beyond money, gap funds are frequently coupled with mentorship, business development support, and access to industry networks. Return-agnostic or Return-sensitive: Some gap funds expect no return, while others are structured to recycle returns back into the fund, promoting long-term sustainability.
- 6. IMPACT OF GAP FUNDS The impact of gap funding can be profound: Technologies receiving gap funding have a higher chance of spinning out into successful startups. Increased Startups: Enhanced maturity makes projects more attractive for licensing deals with established companies. Licensing Opportunities: Projects supported by gap funds are more likely to attract federal grants, seed funding, and venture capital. Follow-on Funding:
- 7. CONCLUSION At Innovosource, we specialize in building connections between research institutions, innovators, and funders. Through our Mind the Gap initiative, we provide data, strategy, and support to over 200 gap funding programs nationwide. Our goal is to accelerate innovation by empowering institutions to launch and grow successful gap fund programs. We invite you to explore our resources, learn from peers, and join a growing network committed to moving bold ideas from lab to market.
- 8. Innovosource Contact Us : www.innovosource.com Minneapolis / St. Paul, MN [email protected]