SinovaGeekWire understands that a Seattle company that runs a network of inventors is scaling back operations.
Xinova was spun off from Intellectual Ventures in 2016 to help match inventors’ ideas with customers such as Pepsi, Honda, and Funai. It advertises itself as an “innovation as a service” platform.
The company raised US$48 million in Series A investments to expand its business scale and develop its network, which includes more than 12,000 investors in 118 countries. Xinova will find companies that need technical solutions; make an appeal to its inventor network; and compensate inventors through advance payment and profit sharing agreements. Xinova usually bears development costs and manages intellectual property rights. The company has employed more than 100 employees in 10 offices around the world.
But Xinova needed more cash and ran into trouble when trying to raise another $100 million. The Sino-US trade war and the pandemic have aroused investor vigilance, and a company even withdrew from a signed financing commitment.
The company had to cut expenses, layoffs and cut other costs in the past two years. Earlier this year, it tried again to raise more funds, but failed to convince investors. Xinova tried to work with its creditors to formulate a restructuring plan, but it was also unsuccessful, forcing the decision to close. The company now has only two employees who are helping to reduce operations.
Edward JungIn 2000, he helped found the invention company Intellectual Ventures. He was an early Microsoft engineering leader and the founder and CEO of Xinova. He stated that the company is able to operate an “economically sustainable business” but cannot renegotiate its legacy debt, which makes additional equity financing impossible.
Jung resigned a few months ago, citing a conflict with his status as the largest secured creditor. He said that he has the responsibility to “understand liabilities and risks beyond the sustainability of these unexpected changes.”
“I regret letting my best investors, partners and employees down,” Jung added. “But I still believe in the vision of the Global Innovation Network and will continue this vision in new invisible projects.”
Jung co-founded Intellectual Ventures with Nathan Myhrvold, former head of technology at Microsoft. In 2007, Jung began to lead the company’s “Invention Development Fund”, which was spun off in 2016 under the name of Xinova.
Jorma Ollila, former chairman of Royal Dutch Shell and former chairman and CEO of Nokia, is the executive chairman of New Nova. Paul LevinsXinova co-founder and former chief strategy officer left in 2019 and is currently helping catering technology startup Souszen and agricultural technology startup Beanstalk.
Xinova spun off its own independent company called Co-inventor Helped to manage intellectual property assets in 2017. We have contacted Allied to find out if it is still open. Tom KangPreviously led Xinova, currently CEO of Allied, According to the company website.
Xinova established a joint venture called Arcnet in 2019, an online capital market that allows investors to fund innovative projects on a cross-border platform.
Xinova’s Korean branch will continue to operate. The company also has offices in Japan, Finland, Tel Aviv and Vienna.