|Disruptive Innovation Fund, 8/2007|
Rose Park Advisors, LLC (RPA), based in Boston, MA, is a specialized investment firm focused on identifying investment opportunities by applying the framework of disruptive innovation. On the long side, we apply the disruptive innovation framework to identify companies whose strategy is well suited to take advantage of change. On the short side, we identify incumbent companies whose future vitality is threatened by disruptive attackers.
A key finding of founder Clayton Christensen’s research is that many of the companies that grow from start-ups to become industry giants are built around innovations that create new markets or reshape existing ones. Just as established companies systematically underestimate how large entrant competitors will become, tools of financial analysis systematically under-estimate their growth potential. Because these entrant companies tend to be misunderstood, the market misjudges their impact, presenting an investment opportunity.
Rose Park Advisors LLC was founded in 2007 by Harvard Business School’s Clayton Christensen, the NY Times bestselling author of The Innovator’s Dilemma, and architect of the framework of disruptive innovation.