The hardest area in which corporate venturing can help its parent is regarded as the spin-out and successful development of intellectual property.
The achievement, therefore, of Anglo-Dutch-listed consumer goods conglomerate Unilever in selling one of its corporate venturing unit’s portfolio companies to OM Group, a New York-listed coatings provider, is impressive.
OM bought Rahu Catalytics, which provides materials for environmentally friendly coatings, composites and inks, from Unilever Ventures and the company’s management. A source said the price tag was about £35m ($50m).
Rahu was founded in early 2006 as a spin-out from Unilever Ventures, which incubates ideas and takes minority equity stakes in UK entrepreneurs and is managed by co-founders Paul Smith and Dermott Hill.
John Coombs, managing director of Unilever Ventures and non-executive chairman of Rahu, said: "It has been a very successful spin-out for us of [intellectual property] developed in the Unilever [research and development] labs originally for washing powder."
Since early 2009, Rahu has operated under an exclusive commercial agreement with OM Group with regards to its Borchi Oxy-Coat product line.