Corporate Venturing Report 2019
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Tilburg University 2019 Corporate Venturing Report Eckblad, Joshua; Gutmann, Tobias; Lindener, Christian Publication date: 2019 Document Version Publisher's PDF, also known as Version of record Link to publication in Tilburg University Research Portal Citation for published version (APA): Eckblad, J., Gutmann, T., & Lindener, C. (2019). 2019 Corporate Venturing Report. Corporate Venturing Research Group, TiSEM, Tilburg University. 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Created by Joshua Eckblad, Academic Researcher at TiSEM in The Netherlands. 2 TABLE OF CONTENTS LEAD AUTHORS 03 Forewords Joshua G. Eckblad 06 All Investors In External Startups [email protected] 21 Corporate VC Investors https://www.corporateventuringresearch.org/ 38 Accelerator Investors CentER PhD Candidate, Department of Management 43 2018 Global Startup Fundraising Survey (Our Results) Tilburg School of Economics and Management (TiSEM) Tilburg University, The Netherlands 56 2019 Global Startup Fundraising Survey (Please Distribute) Dr. Tobias Gutmann [email protected] https://www.corporateventuringresearch.org/ LEGAL DISCLAIMER Post-Doctoral Researcher Dr. Ing. h.c. F. Porsche AG Chair of Strategic Management and Digital Entrepreneurship The information contained herein is for the prospects of specific companies. While HHL Leipzig Graduate School of Management, Germany general guidance on matters of interest, and every attempt has been made to ensure that intended for the personal use of the reader the information contained in this report has only. The analyses and conclusions are been obtained and arranged with due care, Christian Lindener based on publicly available information, Wayra is not responsible for any Pitchbook, CBInsights and information inaccuracies, errors or omissions contained [email protected] provided in the course of recent surveys in or relating to, this information. No Managing Director with a sample of startups and corporate information herein may be replicated Wayra Germany firms. without prior consent by Wayra. Wayra Germany GmbH (“Wayra”) accepts no Wayra Germany GmbH liability for any actions taken as response Kaufingerstraße 15 hereto. Wayra does not make investment 80331 München Please distribute and cite our work: recommendations, and nothing in this +49 89 414141 012 Eckblad, J., Gutmann, T., & Lindener, C. (2019, July 15). Report report should be interpreted as an opinion [email protected] on Global Corporate Venturing Research Data. Retrieved from by Wayra either on market forecasts or on http://de.wayra.co/ https://www.corporateventuringresearch.org/ SUMMIT@RSM All Rights Reserved. Copyright © 2019. Created by Joshua Eckblad, Academic Researcher at TiSEM in The Netherlands. 3 THE SHIFT EVIDENCED When I set out to revamp Wayra Germany in 2017, I had no But since both worlds are very different, and hardly anyone idea that the time for innovation vehicles being questioned has an overview of what is needed on the one side and what had come — it was just common sense to build an is offered on the other, the achievement of these goals is far innovation vehicle that impacts the Group. Since relaunching away. Of the more than 150 innovation hubs, perhaps 2 or 3 our vehicle towards an impact-driven approach, the are actually successful. innovation world has seen a brutal shift towards models that really pay into the growth and success of the mother „While Digital Innovation Units are becoming more mature, company. business traction is still very limited. “ I am a practitioner — I have experience building and running That is not a surprise. Looking at the numbers, it is close to corporate innovation programs. This report gives a reliable, impossible to develop within a new unit the significant data-driven view of how innovation vehicles are evolving and innovations that an established company needs to survive. that investing in startup technologies has to be on every By giving up the competitive advantages and strengths of digital transformation agenda since this has become a the core business, corporate startups also face the same valuable source for innovation. chances for success as every other startup out there. In a recent study, Bain & Company found that only 1 out of I am very proud of what Joshua and Tobias have created 17,000 startups in the US reach 500 million USD and with this report in terms of the quantity of data analyzed and profitable growth — these are the conditions of added value the quality of insights based on real-world understanding. that an established firm actually needs. Thanks for pulling me in on this journey and for the opportunity to validate it from the practitioner’s perspective! Looking at these numbers, the operating model for innovation hubs seems dead, and I predict that the bubble With innovation becoming more and more important, but will burst soon. also more and more complex for established companies, firms apply a seemingly simple tactic for success. Every year But innovation remains a number one priority for most more and more firms set up separate innovation labs, hubs companies. To increase the satisfaction with innovation and accelerators to invest in start-ups or to set up their own performance that generates real business impact, a new ventures. These various modes are expected to offer operating model is required. Investing heavily in startups companies new innovations, cultural changes and improved brings value to most firms, nevertheless orchestrating all brand images by aligning the two worlds (corporates and innovation approaches: outside-in, inside-in and inside-out startups). will help realize more of the potential. This is the first step towards the right direction as corporate firms continue to invest significantly in startups. Christian Lindener Managing Director Wayra Germany [email protected] SUMMIT@RSM All Rights Reserved. Copyright © 2019. Created by Joshua Eckblad, Academic Researcher at TiSEM in The Netherlands. 4 LET THE DATA SPEAK! We are excited to share this data-driven report on corporate The data presented in this report illustrate how there has venturing with you, which sheds light on the state-of-the-art. been a sharp rise in the number of newly-founded corporate This research presents meaningful insights using a broad VCs since 2016. In addition, we found that 65 percent of coverage of data sources and data points. active (engaged) corporate VCs were launched after 2010. This is a remarkable development, as the rapid rise of some I feel very privileged to be both a researcher and a corporate VC units suggests important differences between practitioner of corporate venturing. Having seen numerous low and high performing corporate venturing units. High startups and companies ride the crest of the corporate performing units are delivering value to startup ventures venturing wave, I am breathing my passion for corporate and may enjoy a competitive advantage. firms’ search to spur future growth. In addition, my professional experience in corporate Some practitioners have been skeptical about corporate venturing was focused mainly on certain markets (e.g., US, venturing, even going as far as describing this phenomenon Israel, and Europe), and so the data in this report on the as "corporate innovation theatre”. However, established rapid rise of Asia-based corporate VCs was particuarly companies engage in a multitude of activities to accelerate surprsing to me. For example, six out of ten of the most innovation and new business creation. Hence, corporate active corporate VCs in 2018 are based in Asia. This signals venturing activities are gaining more and more attention high levels of available capital, vast numbers of startup from researchers and practitioners – a phenomenon ventures being created, and disproportionate access to sometimes described as the resurgence of a ‘golden age’. enabling technologies. Within just a few years, the corporate venturing landscape has changed: (1) more and more established companies Roughly two years ago, Joshua G. Eckblad and I joined invest increasing amounts of capital into corporate forces with a long-term mission to… venturing activities, (2) new corporate venturing modes are becoming more prevalent, and (3) corporations are • Build the leading insight engine into corporate venturing reflecting on the performance of their current venturing activities strategies. • Bridge the gap between research and practice in corporate venturing • Boost knowledge and provide valuable insights to practitioners engaged in corporate venturing Dr. Tobias Gutmann Post-Doctoral Researcher [email protected] SUMMIT@RSM All Rights Reserved. Copyright © 2019. Created