Definition
Treats internal/external ventures as a portfolio with staged funding, risk diversification, and periodic rebalancing—like a VC fund.

Introduction
Most ideas fail; a few pay for the rest. Governance ensures you place enough shots on goal and scale only the evidenced winners.

Explanation

Shape: many seeds, fewer builds, very few scales (“funnel math”).

Stages & cheques: Seed (discovery) → Build (MVP/PMF) → Scale (GTM/ops) with larger tranches per stage.

Review bodies: monthly seed council; quarterly scale council; independent experts.

Risk balance: core/adjacent/transform mix; avoid concentration.

Reporting: innovation P&L, TVPI-like metrics, time-to-evidence.

Key Takeaways

Portfolio math > hero projects.

Money moves on evidence, not seniority.

Publish the funnel so expectations are realistic.

Real-World Case
Johnson & Johnson’s JLABS and related venture structures manage a wide funnel of health innovations with stage gates and corporate access without guaranteeing procurement.