Idealab

Idealab, founded in 1996 by Bill Gross in Pasadena, California, stands as one of the pioneering and most enduring technology incubators in the United States. Unlike traditional venture capital firms that primarily invest in existing startups, Idealab operates on a unique company creation model. It identifies promising ideas, then builds and launches new companies internally, providing them with comprehensive resources ranging from initial capital and office space to legal, HR, and marketing support. This hands-on, operational approach aims to accelerate the development and market introduction of innovative products and services.

Over its more than two decades of operation, Idealab has been instrumental in the formation and growth of a significant portfolio of technology ventures. The incubator boasts an impressive track record, having created and operated over 150 companies since its inception. Many of these ventures have gone on to achieve substantial success, leading to over 45 IPOs and acquisitions, including notable names like GoTo.com (later Overture Services, acquired by Yahoo), Citysearch, and Picasa (acquired by Google). This success underscores Idealab's ability to identify market opportunities and nurture them into viable businesses.

Idealab's investment strategy, or rather, its company-building approach, involves providing the initial seed capital and operational infrastructure to get its internally conceived companies off the ground. While not a traditional "check size" for external investments, the typical initial capital provided to the ventures it spins out has historically been in the range of $500,000 to $1 million. Beyond direct funding, Idealab leverages its extensive network and shared services model to significantly reduce the early-stage operational burden for its nascent companies. This comprehensive support system has enabled Idealab to collectively raise over $1 billion in capital for its portfolio companies from external investors over the years, further validating its unique incubator model and its lasting impact on the tech ecosystem.