Where do startups come from? Today in Silicon Alley, they seem to come from engineers and disillusioned i-bankers. But Spin Transfer Technology, which just scored a whopping $36 million round, took a different track thanks to what is essentially a private equity-funded startup factory.
Allied Minds is a Boston-based, private equity-funded “innovation company” that discovers early-stage technology being developed at American universities and labs and then forms, funds, manages and builds startups around said technology. In September of 2007, representatives from Allied Minds visited NYU to check out research in magnetism by professor Andrew Kent, an award-winning physicist and serial inventor who was working on a “spin transfer” technology that could improve computer memory.
Allied Minds’s slogan should be something like, “We take your tech and make it into money.” Once AM determined the invention was legit, it cobbled together Spin Transfer Technology the way a record label might put together a new boy band. Read More