Corporate venturing units (CVC) crucial for developing new growth domains
CVC units have proliferated in recent years
In the face of increasing performance pressure, exponential growing technologies and new immerging ecosystems, corporations have initiated corporate venturing to partner with ecosystems and take advantage of network effects as to allow corporations to respond quickly to market transformations and to realize new substantial revenue.
M&A Dinner on Corporate Venturing
On April the 11th, 2017, keynote speaker Sebastiaan Vaessen, Head of Strategy Naspers and Stewart McCrone, Head of M&A, Philips joined business people, M&A experts, and industry makers at Explore By Lute in Muiden for Deloitte’s annual Corporate M&A dinner.
The keynote speeches were combined with a panel on corporate venturing and the evening was designed to share ideas and in particular to discuss trends, opportunities and challenges with fellow industry peers.
Lessons from emerging markets
On stage, Sebastiaan Vaessen did a keynote on Tech 2.0: Lessons from emerging markets, he discussed Naspers Ltd. venturing strategy. Naspers’s has a market capitalization of over $75 billion, and is investing heavily in high risk emerging markets such as India, China and Brazil with a focus on Classifieds (LetGo), Payments (PayU) and B2C Ecommerce (Flipcart). Sebastiaan discussed the importance of implementing a culture of risk taking and the notion that it is OK to fail to succeed.
Building ventures-led ecosystems
Corporate startup investing has grown steadily in recent years, with large companies investing in startups both directly and especially through dedicated venture capital arms that work alongside corporate development and M&A teams.
Stewart McCrone, Head of M&A Philips, talked about Philips Ventures and the ambition of Philips to shape the healthcare ecosystem through both M&A and corporate venturing. With a focus on Diagnosis & Treatment, Connected Care & Health Informatics and Personal Health, Philips has transformed into a focused HealthTech leader. One of the key takeaways was an increasing focus on building a ventures-led ecosystem, especially around the Healthcare IT businesses where the rapid pace of change means that partnerships and open innovation offer the best chance of success. “As an industry, Healthcare is lagging in terms of consumerization and digitalization” said McCrone “Philips is increasingly bringing consumer expertise to its Healthcare solutions. To spur digitalization, we are developing a Health Suite Digital Platform that will allow us to co-create next-generation solutions with all players in the industry. You will not recognise Healthcare 10 years from now!”
Paneldiscussion on corporate venturing
Why do large corporations start corporate venture units and invest in small, risky companies developing untested products and services? Is it realistic for them to count on absorbing innovative technologies and business models simply by taking a stake in a startup? Can they compete for deals against specialists and top VCs who may be better compensated?
Our panel consisting of Lara Koole from Philips, Hugo Bongers from ABN AMRO Digital Impact Fund and Gijs Jeuken from Aegon Ventures agreed that investing in promising early stage startups and consistently participate in the ecosystem is crucial to stay relevant in today’s ever transforming market place. Customer needs can be better satisfied when involving innovative partner ecosystems.
Deloitte Ecosystem & Corporate Venturing Advisory
Deloitte Ecosystem & Corporate Venturing Advisory supports organizations in shaping and executing their ecosystem and corporate venturing strategy.
We developed a proprietary methodology to guide organizations through the entire venturing lifecycle – from identifying growth domains to structuring and executing corporate venture capital investments, joint-ventures, acquisitions or partnerships.
We designed a robust and data-driven process to identify suitable venturing partners in new growth domains. Deloitte has access to high quality data sources covering millions of companies worldwide. Deloitte’s venture discovery platform – Fast Ventures – captures curated data on thousands of fast growing technology ventures.
Through our global network of venture scouting teams in the world’s relevant innovation hubs (including Silicon Valley, Tel Aviv, Paris, Berlin, and London) we can provide deep insights and connect you to technology ventures and talent.