Senake Atureliya, Managing Director of Buzz Technology explained how their solution would help to release dormant innovation.
 
"Private and government organizations worldwide are looking for ways to boost innovation to support their economies, but even now the main stakeholders – the innovators and investors - cannot agree on main challenges that they face. Innovators insist that there is an early stage equity gap whilst investors even at the angel funding level insist that there is not. Instead, they claim, that there is a shortage of good quality investment proposals. To compound the issue, neither group trusts the other...innovators in particular believing that because most investors are unwilling to sign non disclosure agreements, they are therefore looking to steal their ideas.
 
From our own experiences and discussions with many other innovators, we believe that innovation and entrepreneurship need to be divorced.
 
Where innovation is successful – in the academic environments, undergraduates with few financial commitments accountable only to themselves have the time and resources to develop their ideas. To generate more innovation, this environment needs to be recreated for the wider public. Innovators need to be able to make a living from innovating by adding value to their ideas and building a reputation so they can get to market more easily. Whilst some individuals do have sufficient resource to bring an idea to market, other commitments such as family or even concerns about losing out to competitors can dissuade them from giving up secure employment to embark on a venture that is unlikely to pay its way for some time and may lead to the loss of their investment.
 
Similarly, most investors are just looking for a safe route to achieving above market returns. Whilst business angels can take a little more risk with their own money, venture capitalists are generally institutionally funded. They need to demonstrate that they are being diligent about their investment choices which lead them to taking the safer route of investing in expansion as opposed to becoming involved at the proof of technology or market potential stage”.
 
Senake went on to say “we recently pitched the bike fuel cell to several people at an investor event and despite its obvious global potential, they eventually all turned it down saying that it was too early stage for them to consider…”
 
Buzz Technology’s web enabled system claims to bridge the gaps in trust and funding by giving innovators direct access to the resources, security and returns that they need to turn ideas (dormant innovation) into investable business opportunities that can then be sold to investors or competitors. It also allows for varying levels of time commitment by innovators allowing viable ideas to be brought to market by professional management teams.
 
To start the process, registered innovators define an idea on the system to establish a stake in the ground – Buzz Technology recommend that this is done after a patent is filed where appropriate. To further protect the idea and generate interest, Buzz Technology then produces a series of pod casts covering the progress of innovations from concept to market. Buzz claim that whilst the patents may safeguard the innovator against smaller competitors, an alternative is needed to tackle threats from larger, better financed parties. For investors, the pod casts provide transparency so that an attempt to “steal an idea” would be obvious. A register of infringements maintained on the system would act as a major deterrent as it would result in an undesirable reputation with innovators and institutional funds alike. Similarly, for larger competing businesses, without even making an accusation, the obvious infringement could potentially damage an established brand. An example is the recent furor over the low cost laptop…given the choice, I know which one I would buy for the kids.
 
Once defined, specialists – marketers, engineers, lawyers, accountants – would be invited to evaluate ideas and venture proposals, identify gaps and provide solutions on a deferred payment and profit share basis. Using the system templates, these would be enriched into detailed commercialisation plans with a list of the specific resources - materials, labour and use of assets - required to carry them out. The systems complex algorithms then optimise the cost of fulfilling these requirements from the registered user base and open market to minimise the up front funds, deferred payments and profit share that need to be offered. Finally, selected business angels, venture capitalists and trade buyers would be invited to make offers for the business at various stages of development providing a target and guaranteed return for concept stage participants.
 
The smaller requirements defined as actual items as well as the funds required for their purchase represent a smaller investment risks and can be fulfilled by a much larger audience of suppliers, individuals with time to spare as well as smaller investors. Using proprietary systems, resources could be tracked and ownership effectively retained even where they are transformed into products and services allowing them to be retrieved if the venture failed. Redundant or spare resources could be invested further mitigating risk. For scaleable ventures, widespread distribution channels could be put into place before significant development resource is expended. To meet cash flow commitments, resource providers would be able to sell deferred payment rights and profit shares on the systems trading screens.
 
Senake explained their motivation for the launch…“we have already pitched the system as a solution to government enterprise and employment initiatives…the more widely it is taken up, the more effective it will be”. He went on to say “It has definitely taken a leap of faith to go public with our ideas, but we felt that a radical approach was required to solve this age old chicken and egg problem”.
 
Entrepreneurs, resource providers, investors and marketing partners interested in evaluating the system or participating in the fuel cell venture should register their interest at www.piefinance.com .
 
The fuel cell has the potential to both encourage more people onto bicycles by significantly reducing the effort required for stop/start journeys and save lives by removing the motivation for "red light jumping". The compact lightweight device stores and releases energy using a principle similar to that used to power the rubber band powered aeroplane. They are looking for both individuals and businesses interested in forming part of the product's supply chain, global distribution channel and patent enforcement network for this innovation and others to follow on a collaborative basis.
 
Both the resource system and bike fuel cell have patents pending.
 
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Note to the editors:
 
Buzz Technology Limited was founded in 1996 by Senake Atureliya. To date, the company has been involved with the international implementation of Enterprise Resource Planning systems in a diverse range of industries. More recently, it has diversified into the development and marketing of innovative business models based upon opportunities spotted by its employees and associates.