Technology Acquisition And Investment Program Overview

A Technology Acquiry acquisition and investment program, or TIP, is a very important initiative for companies working to improve their bottom line. As the name implies, this program involves an investment of money that supports research and development activities for the development of new technologies. These activities can be used in many industries, including information technology, biotechnology, applied science, energy, military technology, electronic, and manufacturing. In general, this program supports technology diversification and development.

Owings Mills-based investment firm Greenspring Associates acquired by  StepStone in $725M deal - Baltimore

TIPs differ from traditional R&D programs in that they do not have a primary goal in developing new technologies per se. Instead, they are designed to increase companies’ revenues by investing in the research and development of new technologies that can be applied in numerous fields. As such, TIPs can be quite broad in their coverage. Some companies make TIPs available to support just technologies that are already developed and in some instances, these programs provide funding for the research and development of new technologies altogether.

One of the most common ways to support a technology investment program is through technology acquisitions. When a company invests in a new technology that meets its defined requirements, it is commonly known as acquiring the technology. This process usually involves acquiring the rights to use the technology for a specified period of time, typically a one-year term. This enables a company to develop the technology and bring it to market, while also obtaining a low cost, viable solution to a pressing problem.

Sometimes, however, companies acquire technologies that they are not actually interested in developing. The reasons for this vary widely. Many times, it is not because the technology is unprofitable or untapped. Rather, companies with an interest in a technology but not particularly talented in the area to develop the technology, only to sell it to other companies at a later date when they are more proficient and knowledgeable in that field.

Technology acquisition and investment programs provide an excellent way to fund an acquisition. Typically the company entering into a venture agreement is working with several other companies. Therefore, if one of those companies develops a quality product, the other companies’ shares in the profits, which means they reap the benefit. In addition, if the product proves to be exceptionally marketable, the company does not have to spend additional resources marketing the product. This results in a considerable reduction in the initial capital required to successfully develop the technology.

Technology investments are an excellent way to grow a business quickly. Many technologies that are acquired are highly profitable and can earn extremely high returns. However, these profits do not occur overnight. A technology investment program is designed to result in the company making a significant return on its investment in a short period of time.