What is Innovation Capital?
In a few weeks I’ll be delivering an address at one of South Africa’s universities upon the invitation of the Director of Technology, Innovation and Commercialisation on some key innovation practices in the country, this will be to the regional campus’ staff and students. Last week, I addressed an audience of over 225 women on leveraging their capital (in trusting themselves) through innovation tools. Apart from the innovation addresses in common that these two invitations carried, it’s how I was contacted and made visible to these two entities that will touch on what we’ll be unpacking in this article. Through amplifying my work and thought leadership engagement, and many other properties that I’ll get into in in the coming paragraphs, my Innovation Capital banked on these opportunities.
A concept coined by Marc Benioff who is Salesforce’s Founder and CEO, Innovation Capital is (to paraphrase) the accrued capital and impact to influence and fund an idea and the resources needed to actualise it. Have you ever wondered how Elizabeth Holmes successfully raised millions of dollars for Theranos, despite its failure? Or how Elon Musk continues to build and bankrupt ideas that are bankable, yet seem incredibly ludicrous? Innovation Capital is not only exclusive to individuals, but to brands like Apple who continue to incrementally innovate and elevate their standard to a point where their customers become their brand advocates? Or how recently listed UBER continued being funded by investors even though it was a blood-sucking investment? Some have it, and some can still raise it; so how do you ensure that you have it? You build it, and you do so patiently, because Innovation Capital cannot be wired into your account, you have to earn it. Let’s unpack this a bit.
The Characteristics of an Innovation Capitalist?
As with any capital, no matter who or what brand you are, it accrues in volume over time before it can be of value, innovation capital is no different. To be an inspired gamechanger like an Oprah Winfrey and building a school for girls in South Africa, not only do you need to be the self-made billionaire with multiple businesses and have a direct line to a Nelson Mandela who can make political calls to get your idea into a proof of concept. Are you getting my drift? The characteristics of an innovation capitalist are dependent on who you are, the strong ties that you have with the right network, the work that you’ve done and the stages and platforms that you employ to amplify your work. Now, even with all these characteristics in mind, as is the process of innovation, there is no guarantee that it’ll work out, proof of concepts aren’t always proven. This, entrepreneurs and intrapreneurs will tell you, but that’s the beauty of innovation, there’s no guarantee but through the research and development, there’s always a lesson or few to be learnt. Having worked in corporate innovation for the past two years and being at the nucleus of product management and development, I cannot tell you how many ideas were killed (in their respective stages) in as much as that we launched. But in this, the true value became not in how many times we failed, but how quickly we did so and did it so with an accrued value for my manager (with incredible visionary leadership – another key component) to continue getting these ideas funded.
How do you Build Innovation Capital?
So, whether your ideas take off or not. How do you begin to build Innovation Capital? If you’re not an Oprah, a Mandela or even a Hitler (dark, I know, but his capital funded Nazi Germany) and you’re a student, entrepreneur or working professional who wants to create or accrue their innovation capital, where do you begin? First things first, you acquire the knowledge of where you’re wanting to be an innovation capitalist in – in order to play the game, you need to know it. The skills that you’ll acquire from this will enable you to not only set yourself apart, but then have the expertise and confidence to be able to find the platform to share these ideas. These are the makings of a leader. Becoming a leader in your industry is a key component in building trust in your shared ideas, as this garners visibility, which catapults the effectiveness of a personal brand that people trust with their capital.
An amalgamation of many accrued capital, innovation capital requires human, social, intellectual and other forms of capital in order to yield momentum and/or return on investment, nothing is guaranteed. Now that you have the knowledge and the tools of the term, how will you put it to practice and ensure that it get funded? May the best idea win, and the capital odds always be in your favour!
Images Supplied: The Corporate Canvas