#40 Getting Corporate Venturing Right, with Paulina Banszerus Head of Venture Capital @Schenker Ventures
Hi, I'm Jeppe, and welcome to my weekly newsletter on Corporate Venturing. My goal is to provide a comprehensive view of the latest developments in the field, drawing insights from top management, venture capitalists, founders, LPs, and family offices. This newsletter aims to offer valuable information and thought-provoking content to understand the importance of Corporate Venturing in business strategy.
Todays newsletter is with Paulina Banszerus, Head of Venture Capital at DB Schenker. In late 2021, she joined DB Schenker to establish their CVC structure, bringing venture capital experience to the logistics giant.
Before I started my set of questions Paulina stressed the following. Schenker Ventures, part of DB Schenker, encompasses multiple facets. While Corporate Venture Capital is a significant part of it, there are two other key streams. One involves a Venture Studio, a collaborative effort with the MVP Factory, focusing on company building in logistics and supply chain management. The third stream is Venture Building, with a dedicated team that empowers DB Schenker employees to create and develop new business models from within. Together, these elements make up the comprehensive structure of Schenker Ventures.
Schenker Ventures mission and objective in the context of DB Schenker's broader goals?
In our focus at Schenker Ventures, logistics and supply chain management take center stage. While our core business primarily revolves around daily operations with a two to three-year horizon, we also play a pivotal role in introducing topics that can significantly impact our strategic decision-making. This broader perspective encompasses discussions on market trends, new technologies, and emerging business models.
Schenker Ventures play a pivotal role in introducing topics that can significantly impact our strategic decision-making
What sets us apart is our ability to bring these essential discussions to the forefront, even in areas where DB Schenker is still defining its strategy. While our central focus remains steadfastly on logistics and supply chain management, we maintain the flexibility to explore adjacent topics when we see a potential influence on our company's broader objectives.
Our portfolio reflects this adaptability. It includes investments that expand beyond Schenker's core business, such as e-commerce fulfillment for direct-to-consumer (DTC) brands. Importantly, we maintain continuous interaction with DB Schenker's leadership throughout this process. We actively share the insights we gain through the due diligence and portfolio management process, ensuring that our investments contribute effectively to our growth and innovation agenda.
What specific sectors or technologies does Schenker Ventures focus on, and what criteria are most important to your investment decisions?
At Schenker Ventures, our primary focus revolves around logistics and supply chain management, with a specific emphasis on sustainability solutions. When it comes to selecting investment opportunities, we evaluate them against a dual set of criteria: financial return and strategic relevance to DB Schenker. While we do adhere to conventional venture capital standards during this assessment, we also pose a critical question— why should DB Schenker be looking into this market? What can we learn from it and how can we best support this potential portfolio company?
Our unique approach involves leveraging DB Schenker as a valuable asset. We tap into the vast expertise, extensive customer base, and wide network of partners that DB Schenker brings to the table. During our due diligence process, we engage in discussions with the corporate's operational units to gain valuable insights into potential synergies.
The decision-making body of Schenker Ventures comprises key figures at the C-suite level, including the CEO, CIO, and CFO. This secures alignment with the broader corporate strategy, a crucial factor when it comes to the success of downstream portfolio management.
While we employ typical venture capital key performance indicators (KPIs) to track financial performance, measuring strategic relevance and the knowledge we gain from our investments is an ongoing challenge. We could rely on specific indicators such as the number of introductions, diligence calls, and successful collaborations as signs of our success in fostering strategic objectives, but we have not carved it into stone yet. However, quantifying the broader impact, including cultural changes stemming from these investments, remains a complex undertaking. Nonetheless, we continue to refine our approach and metrics to enhance our understanding of how these investments contribute to DB Schenker’s strategic growth and innovation.
In your experience, what role does a strong network within the organization play in the success of corporate venture capital?
In my experience, a robust network within the organization plays a pivotal role in the success of corporate venture capital (CVC), and at Schenker Ventures, we’ve recognized and actively cultivated the significance of this network.
Could you elaborate on some of the key challenges you've encountered and how Schenker Ventures has addressed them?
Building a successful corporate venture capital arm has presented us with several unique challenges. One of the major hurdles we encountered was establishing streamlined processes within the corporate structure. The typical timelines of early-stage venture capital decision-making didn't naturally align with corporate processes. To tackle this, we introduced the concept of an investment committee, our "venture board," which consists of corporate C-levels. This approach allows us to make investment decisions more efficiently.
Looking ahead, what are some of the key trends or innovations in the logistics and transportation industry that you believe will shape the focus of Schenker Ventures' investments in the coming years?
Looking ahead, one of the key trends that will shape our focus at Schenker Ventures in the coming years is undoubtedly sustainability. Sustainability has become a significant topic across all industries, including logistics and transportation.
Conclusion
Paulina Banszerus, has highlighted DB Schenkers mission to drive innovation in logistics and supply chain management. They've tackled challenges by streamlining processes and building strong networks, emphasizing the importance of founder-centric support.
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