In today's rapidly evolving business landscape, disruptive technologies and innovative business models are transforming industries. Combined with macro-economic shifts and mounting sustainability pressures, these changes pose significant challenges. Whether viewed as threats or opportunities, these dynamics keep corporate and SME leaders up at night. The need to develop fresh ideas and solutions to maintain a competitive edge and create a positive impact is more pressing than ever.
One essential resource for navigating these challenges is entrepreneurial talent. For over 18 years, our Master in Sustainable Innovation and Entrepreneurship program has cultivated such talent. Yet, many entrepreneurial minds are increasingly drawn to the start-up ecosystem. This trend risks leaving corporates and SMEs without the critical talent needed to tackle their most pressing challenges.
In response, corporates and SMEs have launched a new wave of corporate venturing initiatives - ranging from accelerators and venture capital-as-a-service (VCaaS) to start-up studios - to foster collaboration with start-ups. (For more on collaboration methods, see our research with PwC.) The rationale is straightforward: if entrepreneurial talent isn't joining your company, collaborate with them instead.
But are these corporate venturing initiatives actually successful? We're currently reviewing academic literature and surveying Belgian companies to explore this question. Meanwhile, we've identified several impactful, remarkable, and successful cases of corporate ventures. It's important to note that the success of corporate venturing should not only be measured by the number of ventures or their direct impact. These initiatives can significantly influence recruitment, company knowledge, culture, and brand image.
Notable Corporate Ventures
Airbnb (Axel Springer):
- Why: Media giant Axel Springer sought to enter the US market and diversify its offerings. After CEO Mathias Döpfner met Airbnb founder Brian Chesky, he was captivated by the sharing economy's potential. This led to a minority investment in Airbnb, fueling Axel Springer's appetite for more such investments.
- How: Minority investment via Corporate Venture Capital (CVC).
- What: An unconventional deal where the investment amount was tied to the value of advertising space in Axel Springer media outlets.
- When: 2012.
- Where: A German corporate partnering with a US start-up.
Tinder (InterActiveCorp - IAC):
- Why: Tinder emerged from Hatch Labs, a corporate accelerator backed by IAC/InterActiveCorp. With a portfolio that included Match.com and OkCupid, IAC recognized the potential in Tinder and provided initial funding and guidance.
- How: Corporate Accelerator.
- What: While exact funding details aren't public, IAC's support was crucial in Tinder's rapid development and launch.
- When: 2012.
- Where: A US corporate supporting a US start-up.
Twill (Maersk):
- Why: Twill was created to simplify logistics for small and medium-sized businesses, enabling them to book shipments with just a few clicks, bypassing the traditionally cumbersome quotation process.
- How: Start-up Studio, developed by BCG Digital Ventures for Damco (now merged with Maersk).
- What: Twill, now a Maersk company, operates in over ten countries, including the UK, Germany, India, and China.
- When: 2017.
- Where: A Danish corporate collaborating with a Dutch start-up.
