#32: The CVC Visionary: Crispin Leick's Impact on Sustainable Digital Energy
Hi, I'm Jeppe and welcome to my weekly newsletter on Corporate Venturing, released every week. 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, we have the privilege of conversing with Crispin Leick, the Managing Director of EnBW New Ventures, the corporate venture capital arm of EnBW. Before delving into the wealth of knowledge he brings to the table, let's get better acquainted with Crispin. Then, we'll embark on a deep dive into the invaluable lessons he's gathered from his extensive career in the world of Corporate Venture Capital.
Getting to Know Crispin Leick: A Journey in Sustainable Digital Energy Infrastructure
Before we delve into the questions I have prepared for Crispin let's get to know the individual behind the insights, Crispin Leick.
Proud Father and husband: Beyond the professional realm, Crispin takes immense pride in his role as a father. He's the parent of four children, two of whom are adults now. Family holds a special place in his heart, and he's been happily partnered for 33 years. For Crispin, family is a cornerstone that brings stability, fulfillment and purpose to his life.
An Accomplished Career: Crispin Leick is a professional with a strong background in the energy and utility industry. He holds a degree in Chemical Engineering from the Karlsruhe Institute of Technology and pursued an MBA at The University of Chicago Booth School of Business. His unique combination of technical expertise and commercial acumen has been instrumental in his career journey.
An Energized Career: Crispin's career has been consistently driven by his search for a sustainable solutions to our energy demand. He finds the energy sector to be far from mundane; it's a space that is constantly changing, presenting new challenges, and offering exciting opportunities. It's this dynamic nature of the energy market and the imposed transformation of the utility industry that keeps him engaged and motivated.
Creating Positive Impact: Throughout his career, Crispin has made significant contributions to the corporate venture capital (CVC) realm. Crispin and I have regular correspondences and share the same passion for expanding the knowledge around strategic and financial benefit of CVC. He has played a pivotal role in raising more than EUR 200 million for two CVC entities. The real measure of his success, however, goes beyond the numbers. Crispin has taken pride in the journey of these CVC entities, which has resulted in the creation of over 1,000 jobs and a world that's becoming more electric and sustainable. It's the positive impact on people's lives and the world's future that truly matters.
The Power of Human Ingenuity: A core belief that guides Crispin is the incredible power of human ingenuity. He is a firm believer that when faced with challenges, people are adept at coming up with innovative solutions. Rather than being weighed down by problems, he sees them as opportunities to envision a brighter future and find the answers that can drive progress.
Embracing Technological Shifts: Over the years, Crispin has encountered technological shifts that have significantly shaped the energy landscape. Every decade, he has witnessed transformative events that have the potential to change the future.
In 1989 still in school, as a student, he was introduced to space technology, directly converting solarrays into electricity. Today very well known as photovoltaics, the concept of directly converting solar power into electricity left a lasting impact.
In 1999, energy liberalization marked a pivotal learning opportunity. It's during this time that Crispin recognized the convergence of the energy industry with other sectors, like telecoms and IT, setting the stage for potential investments that could reshape the future.
In 2009, the introduction of the TESLA Roadster (he actually drove one) and the electrification of transportation captured his attention. This event underlined the significance of moving away from conventional gasoline vehicles toward more sustainable and efficient electric transportation.
Fast forward to 2018-2019, the need to make a difference in the world of energy persisted. While photovoltaics now start to go into massive worldwide roll out mode, it became clear that storage is a missing link in the energy transformation. Whitnessing what batteries can bring to the table catched Crispin’s attention. In addition, Crispin understood, pretty late compared to first mover nations like the Netherlands and Denmark, that turning cars into electric cars will not do the trick and that fundamental changes in the cities traffic are overdue and needed.
The Next Frontiers : Crispin that
going from 50% to 80% renewables will require further digitization e.g. through dynamic local pricing for energy and grid capacity,
city infrastructures will have to put the human life into center stage to reduce emissions and casualties (away from car friendly) and
especially in central Europe electric heating will take the lead and replace gas boilers,
Electrification will therefore be in the driver seat. He recognizes that we have a wealth of existing technologies at our disposal; there's often no need to reinvent the wheel. Instead, it's about harnessing these technologies to bring about positive change. The last investments of EnBW New Ventures with Enspired & Volytica (enabling renewable integration) Cycle & Vivacity (transforming cities & local mobility) aim to create an impact for these next frontiers.
As he looks ahead, Crispin Leick continues to be at the forefront of technological and industrial change, advocating for innovative solutions that contribute to a more sustainable and energy-efficient world.
Overcoming Obstacles and Challenges in Corporate Venture Capital:
Corporate Venture Capital (CVC) often comes with a unique set of challenges and complexities. For someone with Crispin Leick's extensive experience in the field, it's imperative to navigate these challenges adeptly.
Balancing Priorities: CVC professionals often find themselves balancing the interests of the corporation and the start-up. Crispin underlines the importance of prioritizing the success of the start-up and its founders. In CVC, the corporate entity must recognize the value of letting the start-up lead the way. This requires a fundamental shift in perspective – if you want control, don't do CVC, do M&A. A successful CVC operation requires that the start-up takes the lead while the corporation supports, its progress e.g. through collaboration.
Strategic Interest: While prioritizing the start-up’s success is crucial, the strategic interest behind a CVC initiative should not be overlooked. The CVC team understands that the operation is set up for strategic reasons called open innovation. However, these strategic interests should be part of the broader CVC strategy and portfolio, not the specific investment itself. Effective communication of the investment rationale can provide substantial benefits for the CVC as it collaborates with the Mothership.
Industry-Specific Challenges: The energy and utility sector presents its own unique challenges for CVC efforts. Utilities are typically characterized by risk aversion, given the nature of their operations that involve long-term infrastructure investments. They are not inherently technology-driven entities but rather place emphasis on scalability and operational efficiency & excellence. Utilities often prioritize stability over the risk-taking culture of start-ups. This industry dynamic can significantly influence the approach CVC teams take when engaging with utilities and utility-related start-ups. This is also what makes EnBW so exciting as it invests into new business models and technologies that can help the Mothership grow and avoid disruption.
Challenges in Collaboration: One common challenge faced by CVCs is achieving impactful collaboration. While CVCs may initially invest in start-ups with the intent of creating options for M&A in proven solutions for the corporation at a later point in time, it can be far more beneficial if the corporation engages with start-ups at an earlier stage.
"it can be far more beneficial if the corporation engages with start-ups at an earlier stage"
This entails forming partnerships, running pilot projects, and fostering collaboration. Such collaboration is challenging, particularly when employees switch roles or positions within the organization, leading to the need to rebuild relationships from the ground up. It's not the kind of journey employees expect in a corporate setting, but it's often a key factor in creating impact-driven collaborations.
Balancing Risk and Reward: Striking the Right Balance in CVC
Crispin Leick has always had a long term approach to CVC investments, focusing on essential factors that strike the balance between risk and reward. While there might not be a one-size-fits-all answer to this delicate balance, Crispin shares some key insights into how he and his team navigate these challenges.
Lessons Learned and Success Stories in Corporate Venture Capital
Lessons learned from both successes and challenges can provide valuable insights. Crispin shares the importance of incentivizing CVC teams and fostering a culture that supports them through the initial years.
Regarding collaboration between EnBW and the startup portfolio Crispin emphasizes, that half of the portfolio is already in a commercial relationship with EnBW, stating babelforce as a great example of a successfull collaboration. The company focuses on automating processes in call centers. By integrating existing systems, it streamlines customer inquiries, resulting in cost-effective and efficient processing. Babelforce's digital platform contributes to the company's digitization efforts and future success.
Rounding It Up
Crispin, with over 15 years of CVC experience, values knowledge sharing and giving back to the community. In his view, discussing practical insights is incredibly important.
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.