#15: Corporate venture building - by Jesper Bang-Olsen
Hi, I'm Jeppe and welcome to my weekly newsletter on Corporate Venturing, released every Tuesday. My aim is to provide a comprehensive perspective on the latest developments in the field and its related topics, drawing from the insights of top management, venture capitalists, founders, LPs, and family offices. I aim to offer valuable information and thought-provoking content that will aid in understanding the importance of Corporate Venturing in business strategy.
Today I have the pleasure of sharing an article created by Jesper Bang-Olsen.
I met Jesper first time in 2019 and we have shared ideas ever since. Jesper invited me to speak at the Beam conference Re-Imagining Logistics 2019 powered by BEUMER Group. Beam is the Beumer Group's startup company builder.
Propel and unleash your corporate speed boat ✨ It's worth it.
Corporate venture building (CVB) is what we do at Beam - and have done for five years. We have a great team and are proud to have established our ecosystem in Berlin with more than 100 super-talented professionals working hard and diligently to create actual future value for our "mothership" BEUMER Group across our eight startups within Logistics.
We have created a process where we create new ventures from scratch, often intending to enter new markets or develop innovative products and services. Unlike traditional corporate venture capital (CVC), which involves investing in existing startups, we build startups from the ground up with our parent corporation BEUMER Group or syndicate investors wishing to join our startups' journey.
In recent years, CVB has emerged as a powerful tool for corporations looking to innovate and grow in an increasingly competitive and fast-paced business environment.
By launching "speed boats" - small, nimble startups with a specific focus and the freedom to experiment and iterate quickly - corporations can unlock new sources of value, scout new opportunities, and develop innovative products and services that might otherwise be difficult to achieve within the constraints of the larger organization.
Four reasons why corporates need to launch speedboats?
There are several reasons why launching speedboats can greatly benefit corporations. First and foremost, speedboats enable companies to experiment and iterate quickly without being bogged down by bureaucracy, legacy systems, or other organizational constraints. By creating a separate entity with a clear mandate and the freedom to operate independently, corporations can foster a culture of innovation and agility often lacking in larger organizations.
Second, speedboats can help corporations to scout new opportunities and identify emerging trends and technologies. By operating at the cutting edge of a particular industry or market, speedboats can act as "scouts" for the parent corporation, providing valuable intelligence and insights that can inform strategic decision-making and help the company stay ahead of the curve.
Third, speedboats can help corporations to fail fast and learn quickly. By operating as separate entities with their own P&Ls and risk profiles, speed boats can experiment and take risks without risking the parent company's reputation or financial stability. If a particular venture fails, the impact on the parent company is likely minimal, but the lessons learned can be invaluable in improving future innovation efforts across business units.
Finally, speedboats can deliver long-lasting value to the parent corporation regarding strategic focus areas. Launching speedboats with a specific mandate and focus allows corporations to develop innovative products and services that align closely with their overall strategic goals and priorities. Over time, these speedboats can become key drivers of growth and innovation within the larger organization, helping the company to stay ahead of the competition and deliver long-term value to shareholders.
How can corporates make the most of their speed boats?
To make the most of their speed boats, corporations need to approach CVB as a strategic initiative rather than a one-off experiment. This means investing in the right talent, processes, and resources to ensure their speedboats are set up for success from the outset.
I hope you enjoyed this week's newsletter. If you have any suggestions or contributions that you would like to share with me, please do not hesitate to reach out. I would be delighted to hear from you.
/Jeppe