Even though big corporations and start-ups might seems to be at opposing ends of the spectrum, new models of collaboration are starting to emerge to drive innovation in products, services and technology.
Corporate Venturing is the different types of bridge-building between well-established big corps and start-ups. And the concept is catching on.
Global giants such as BMW, Google, Unilever, Telefónica or Accenture are already working with start-ups, according to the study, “Corporate Venturing: Achieving Profitable Growth Through Start-ups”
Published by mVenturesBcn and led by Júlia Prats, IESE professor of Entrepreneurship (and holder of the Bertrán Foundation Chair of Entrepreneurship), the study is a sort of how-to guide for corporate venturing.
It advocates three clear steps that companies must follow to successfully collaborate with start-ups:
1. Set-up objectives;
2. Build a venturing strategy;
3. Define the organizational strategy and resources.
"The question is not whether to capture innovation," say the authors, "but how."
There is a multitude of different tools that companies can deploy in corporate venturing. Among these are:
This kind of collaboration exposes strengths and weaknesses in both established companies and start-ups.
Corporations have financial clout, the technical and human resources and the market demand to push innovation through to market reality. That said, they oftentimes lack the agility and the entrepreneurial or disruptive mind-set that characterizes smaller organizations.
In the entrepreneurial ecosystem there is an abundance of ideas, talent and an appetite for risk. There's also a need for investment in projects, and the financial backing to keep developing ideas in the early stages.
It was only a matter of time till these two worlds found each other.
More information in IESE Insight