Boost your venturing results through data-driven venture scouting

Article

Boost your venturing results through data-driven venture scouting

Executive Summary

When everybody dreams of unicorns

Everybody is innovating. We are swamped with warnings about the current pace of change. Most of us know by now that we have to iterate to fit a changing landscape, and adapt continuously to meet evolving market needs. Competition diminishes margins with disruption as a possible consequence.

Change used to trickle down locally, now it runs globally, cross-border and cross-sector. New technologies disrupt entire industries in no time and from unexpected angles. And it is more than just an economic and technological transition, it’s a social and cultural transition.

Individuals and corporations alike are experiencing a growing challenge to stay relevant and fit. There is friction between short-term and long-term goals with corresponding investment-, management- and cash flow- issues. We are searching for a balance between efficiency and creation.

Tapping into growing ecosystems

With more smart people outside than inside your corporation and knowledge neither centralized nor equally distributed, more and more corporations understand that they don’t have all the required innovation capabilities in-house and are looking outwards for solutions. We see successful examples of corporations that actively participate in growing ecosystems. They are working together with large and small corporations to adapt to change and fulfill the changing client and market needs.

Successful corporations share a common practice. Management has a dedicated team in place whose main purpose is to explore and pursue opportunities in related or (seemingly) unrelated business areas, while the majority of the organization focuses on the current core business. Typically, these teams work separately from the rest of the organization to such an extent that it allows them to employ a more independent approach to identifying and exploring opportunities.

These teams look outwards and actively explore, participate in, and add value to innovative ecosystems. It should be stressed, however, that finding the right balance is important, as these teams should not become too detached from the organization. Corporate venturing is on the rise as an effective method to actively contribute to ecosystems.

Several large corporates already have aggressive corporate venturing activities like Google Ventures, Intel Capital, Salesforce Ventures and Qualcomm Ventures (together, jointly these corporations have invested in over 300 ventures). These examples are limited to technology corporations. We observe, however, that an increasing number of less tech-savvy companies feel the urgency for corporate venturing.

In the financial services sector, for example, significant budgets have been allocated to venturing activities in recent years and we have seen a large increase in the past few months. Allocating a budget is a first step. The second step is applying a corporate venturing model that suits your strategy, culture, and goals.

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Inside magazine issue 10, October 2015

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).

PDF - 8.8 MB
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