Hedge Your Bets: Options Investing in New Product Development
Brad Barbera is the founder of Pi Innovation LLC. He presented on options investing in NPD at Denver’s Inaugural Innovation Forum in September 2018.
“Go big or go home” is the mantra of many a Las Vegas gamble... oftentimes, of one who goes home broke. Product development need not be all-or-nothing big bets. In fact, they shouldn’t be! Instead, leverage the investment strategy of hedge fund managers by treating your New Product Development efforts as options. You’ll go back to the office with a practical tool that helps with the most critical component of valuing an investment in NPD (or in options, for that matter): accurately forecasting the future.
In this presentation, you will learn: “What are options” and why people invest in them, how options are valued, how NPD work can be treated like options investing, and how you can value an NPD project the way options are valued.