Lucent Venture Capital Fund Scores Early Success

By Beth Healy The Boston Globe | THE JOURNAL RECORD, March 6, 2000 | Go to article overview

Lucent Venture Capital Fund Scores Early Success


Beth Healy The Boston Globe, THE JOURNAL RECORD


The last time Stephen Socolof stood before a roomful of Harvard Business School students, he had just braved a howling blizzard on a drive from New Hampshire. Harried and snow-coated, the MBA student from Dartmouth's Tuck school burst into a waiting room to interview with a hot consulting firm. His Harvard rivals were neatly pressed, sitting in silence, staring at him.

How the roles have reversed.

The latest Harvard MBA class is going to school on Socolof's work. He is a partner and vice president of Lucent Technologies' New Ventures Group, a $200 million-plus portfolio of business ideas culled from the brainy depths of Bell Laboratories. He visited the school last month to hear students discuss a case study on the operation, which is seen as one of the best examples of "corporate venturing" among U.S. firms.

The Lucent group is an incubator for more than a dozen early- stage businesses. Many would never have seen the light of day without this new focus, started in 1997. Bell Labs claims four new patents a day, but ideas can wither inside a giant company.

More than a year after Lucent's spinoff from AT&T, there was a move to shed the phone-company culture and to become more entrepreneurial. As venture capital and the IPO market took off, Lucent didn't want to miss opportunities lurking within its very walls.

"We wanted to emulate the Silicon Valley model inside Lucent," Socolof said during his recent visit to Boston.

At first, the group tried outside venture deals while also mining ideas from Bell Labs. That didn't work, Socolof said; the attention still darted outside. So the efforts were separated.

Lucent started Palo Alto, Calif.-based Lucent Venture Partners. It invests in classic venture deals through a $100 million fund and is expected to launch a second fund soon.

Meanwhile, Socolof's group zoomed in on Lucent's home-grown technologies, and results quickly followed. The group spawned a digital radio company, half of which was sold to outside investors. Other innovations involve electronic fingerprinting, analysis of huge volumes of phone calls, and faster 911 responses by police and fire departments.

Some of the ventures have been acquired by Lucent itself. None has gone public yet, but Socolof hopes to deliver an IPO by the end of the year -- a development that makes the group more financially important to Murray Hill, N.J.-based Lucent than the top brass ever dreamed.

"We want to make sure our companies are ready to stand up on our own," Socolof said. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Lucent Venture Capital Fund Scores Early Success
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.