Companies have several options for feeding their pipeline with innovative products / services. Investing in a startup or buying one are just two ways. Investing in or buying a startup doesn't guarantee success or fit with the parent company.

Bruce Cleveland says a lot of money gets wasted in "Sand Hill." Listen to him make the case for working with a VC firm to help create a business spin-in. He claims that business spin-ins lower the risk and increase the likelihood of a successful outcome.