Webinar

How Venture Clients enable startups to grow faster and smarter?

Startups (and VCs) know that good clients are essential for success, and that bad clients can ruin the venture. In this webinar, we answer how good corporate Venture Clients enable startups to:
🚀 expedite Product-Market-Fit
🚀 obtain mission-critical user feedback
🚀 boost market recognition and branding
🚀 increase revenue and valuation without dilution

All our insights are based upon 27pilots 6-year experience helping leading corporations such as Airbus Aircraft, BMW Group, Bosch, Holcim, Siemens Energy, OTTO, and many more to establish world-class Venture Client Units.

Webinar Experts
Gregor Gimmy, Founder & CEO of 27pilots
Sebastian Schäfer, Manager & Lead of Venture Client Strategy & Structure Practice, 27pilots

Target Audience
This webinar is primarily for startups and their VCs.
Venture Client Unit teams can also benefit, as the startups they are in contact with will likely as them about the benefits of Venture Clienting

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Transcript

0:05
all right welcome to 27 Pilots webinar
0:10
for startups my name is Sylvia I hope there’s already a couple
0:16
of people joining us um I’ll wait maybe a minute for the
0:23
rest to join us
0:30
[Music]
0:38
great I can see there’s couple of people joining already
0:44
perfect um so in the beginning I’ll give a quick introduction so in case someone
0:51
joins a bit later I’m gonna miss that much my name is Sylvia T I’ve been
0:56
working with 27 Pilots for the past four and a half years to promote the Venture clim model now
1:04
before I introduce you to our expert speakers I want to talk shortly about 27
1:11
pilots and most importantly about the origins and future
1:16
of corporate Venture cting now Venture cting doesn’t didn’t
1:23
start with trans and Pilots it started a bit earlier at BMW actually in 20
1:30
145 Gregor gim we going to meet in a minute um coined the term Venture client
1:37
and he founded the world’s first Venture client unit the BMW startup garage he’s
1:42
going to tell you more about what a venture client unit is and how that is a game Cher for
1:48
startups um after about three years when Gregor realized that at BMW this model is
1:57
really working and bringing strategic benefits to the entire BMW organization
2:03
he figured what works at BMW will probably also work for other
2:08
corporates and that is why he founded Tron Pilots as the world’s first Venture
2:13
Client Solutions provider and as that solution provider Tron Pilots has worked
2:19
with multiple um corporates in Europe across um across the world and um
2:30
has been very successful in building and growing Venture client
2:35
units sour successful that last year Deo decided to get on board and since last
2:44
year trains and Pilots has the world’s largest consulting firm backing them
2:51
which means that they can now truly expand globally in shaping the future of
2:56
corporate venturing enough from me and about me and Pilots let me introduce you to our
3:04
two expert speakers two of the Brilliant Minds behind Venture cting and my some
3:10
Pilots Gregor gim and Sebastian chifa welcome
3:15
um let’s start with Gregor Gregor can you quickly introduce yourself what’s your background how did you end up where
3:22
you are today yeah thanks syia for the introduction and great to be at this
3:28
webinar today welcome to all startups and how did I end up here today well um
3:37
I started my career um after studying business in engineering and doing um
3:43
some initial years in strategy Consulting I moved to Silicon Valley Silicon Valley I worked at Ido initially
3:50
then I started um my own company Venture biotech software company which was
3:56
acquired and a few years after that I joined the be W initially to work
4:02
basically on just Innovation strategy topics and while I was doing that I
4:07
noticed that BMW was missing out on Startup Technologies and um here’s where I
4:15
thought we need to do more corporate venturing we need to bring in more startups to help BMW in all those
4:20
critical technology challenges that startups would be able to solve better
4:25
now the traditional Venture Capital model didn’t work wasn’t really meeting my
4:33
needs and here’s where I created a new model which I coined the Venture client
4:38
model it worked very well at BMW and as Sylvia said um if it or maybe rephrase a
4:45
little bit if it if it is a problem at BMW it’s probably a problem at many other companies not being able to
4:52
leverage startups strategically um at um at scale and here’s where I decided to create 27
4:58
pilots in 20 um 18 and yeah and I’m rolling out and
5:05
uh making the Venture client model known as a better way of corporate venturing
5:11
ever since great now Sebastian you joined transm Pilots a couple of years ago and
5:18
since then you’ve actually set up a very um own area within transm Pilots the
5:24
strategy and structural squat can you tell us a little bit about your background and what it is that you do at
5:30
ton Pilots sure so thanks for having me
5:35
first of all um it’s really exciting to be here and conducting this webinar
5:40
providing some insights to startups and um actually what we what we have seen is that uh Venture client units um do not
5:48
only need support in their operations which we which means basically assessing
5:54
startups conducting pilot projects and um uh yeah pushing ing startup pilot
6:01
adoptions through the funnel but also on the other hand how to set up a venture
6:07
client unit first of all and how to enable those capabilities um of really
6:12
not benefiting from 10 startups but maybe 20 30 or even 100 and this is what
6:18
we mean by strategy and structure so giving um those Venture client units that we set up for from scratch a
6:24
dedicated strategy um also structural Integrations in terms of for example a
6:30
with the procurement Department um but also um we we’re giving advice to
6:35
venture client units day that may already um uh in in the market for quite
6:41
some time and now um yeah provide them some insights on how to scale um to make
6:47
more startup adoptions happening and yeah that’s what I’m doing since um 2022
6:53
and I I think my study programs uh yeah you can see it here along LMU Technical
7:00
University of Munich and Stanford enabled me to do so and yeah looking forward to to giving some some startups
7:06
here insights to to our process and how they can benefit from Venture clients perfect great and I love the
7:14
last sentence because we’ve talked um quite a bit about what trans and Pilots does for corporates but today’s webinar
7:21
is really about what Venture clients and what the Venture client
7:26
model does for startups um and Gregor and Sebastian are going to
7:33
guide us through uh why and how Venture clients are significantly better than
7:38
traditional clients for the success of your startup and we are going to give Hands-On advice on how to really
7:45
position yourself to be um in the best position to to Really gain uh long-term
7:52
contracts with top Venture clients but before that I think it’s good that we
7:57
talk a little bit about the itself about what corporate venturing is what Venture
8:03
clients are um how they’re different to traditional clients um where that whole
8:09
terminology comes from and um with that yeah I want to ask Gregor to give us a
8:15
bit of a background on what is corporate venturing
8:22
really yes when we talk about um why or
8:28
of inventure client and and we we always need to ask ourselves first you know what is what is
8:33
corporate venturing and and how is that related to you guys you know to to the startups now the official
8:40
definition of um of corporate venturing has really two parts one is what is the
8:46
goal and the other is what is the activity behind that goal I want to emphasize on the goal so corporate
8:52
venturing is an invention really of a vehicle it’s an invention by by
8:57
corporations um that needed to have a vehicle meaning a tool uh that would
9:02
allow them to gain strategic advantages or competitive advantages from startup Innovations and um and that’s a
9:09
definition from the let’s say late 90s early 2000s because already um back then
9:16
corporates knew that The Cutting Edge Technologies of the future are being um born and developed and uh in in the in
9:24
the startup ecosystem and you needed to be able to use and leverage those Technologies so how do you do that well
9:32
you you create a corporate venturing vehicle in order to obtain access to those Technologies now back then and uh
9:40
even today corporate venturing the activity behind really is Corporate Venture Capital meaning the vehicle that
9:47
management chose to adopt was to say well we act like a private venture capitalist so the investment model I
9:53
invest a minority stake that’s my model I’m going to use I’m doing a minority
9:58
invest m in startups uh just like a private venture capitalist would do and
10:04
this um investment would then lead to the Strategic
10:09
Benefit that’s the definition now on the next slide I’m visualizing this um so this is kind of how it looks
10:17
right there is the startup to the left uh the the red piece is the Innovation a
10:24
technology new technology that really makes an impact on a corporate product on the process on manufacturing on you
10:32
know many many of those challenges as corporate are facing now what a CVC a corporate venture capitalist with in
10:39
this corporate venturing model does is they first do an equity transfer like they acquire a minority non-controlling
10:45
state for sake of the that’s associated to a financial goal and that Financial goal is mainly not to lose money right
10:52
they don’t have a financial goal of maximizing returns but they have an obviously a goal of not losing capital
10:59
and after that first transaction there’s another transaction which we call The Innovation transfer and that’s a
11:04
strategic tool so transferring The Innovation into the company so that the
11:10
uh the corporate users can apply this technology into their product into the
11:15
processes and through that gain gain an advantage right this is um the basic
11:21
model of of or the traditional model of corporate venturing that is driven by
11:26
this investment activity now what I did way back then in BMW is I
11:32
thought well in order to obtain that core objective of obtaining the
11:38
Strategic Benefit do I really need Capital as an intermediary do I need to put a capital
11:44
first um with all the huge Capital costs and risks associated with it and um if I
11:53
needed yes then you know it’s need but if not it would really free up resources on the corporate side for the Innovation
12:02
transfer right um and and here’s where I said well we also probably need to maybe
12:10
change the the definition or the let’s say the wording and not call it venture capital or corporate Venture Capital but
12:17
really corporate Venture client so as it’s driven by the needs and the
12:22
processes are 100% focused on meeting the needs of internal corporate users or
12:28
clients um that would then seek startup Technologies in in the case that those
12:33
Technologies are unique and and really can provide a um a strong benefit now
12:40
that’s the definition of venture client which is a form of corporate venturing that’s driven with that works without
12:46
Capital without the without the requirement to invest now obviously corporates have been
12:53
buying from startups ever since since always right since the’ 70s I mean
12:58
buying from startups and being eventual client you know is not that new but but
13:04
but that didn’t work really well because you know buying from a startup was not something a corporate was actually
13:10
really able to do and it was very hard and for startup to actually sell to a
13:17
corporate because corporates are many times in a heavily regulated industry they have very they need to be very very
13:23
careful about risk you know so you can’t just sell a sensor to a BMW and then you
13:29
know oh this is an Innovative sensor I just invented at MIT well you know if that sensor doesn’t work in the car you
13:35
know that that obviously means risk so so becoming a supplier and actually becoming a a technology um um supplier
13:43
for big corporate is is a challenge now here’s where oh we need to go to the
13:49
next slide please one more here’s where I said we need a
13:54
venture client unit right so just being a venture client without a unit doesn’t
14:00
work and creating a unit meant primarily a dedicated
14:06
team specialized inventure client activities and a dedicated process really not the
14:14
general process um that was used to transfer Innovations from let’s say
14:21
other big corporations and also resources right you need a specific budget you need and you also need a
14:27
specific set of kpis and and decision systems you know when do I say yes or no
14:34
to to a startup for example what is a good um what is an important need what
14:39
is a not so important need correct so this all those you know elements that then allow you to you know to be good in
14:46
an in an activity is uh I bundle that into a venture client uh unit as you can
14:53
see on the right um today many large corporates have adopted this model um
14:58
from on Beyond BMW so also at seens H sbos but as of today it goes as far as
15:05
you know Japan where the Venture client model is being adopted by Leading
15:10
companies for example like like Fuji in the in the semiconductors in the semiconductors Industries as the tool to
15:17
benefit from startups uh strategically so on the next slide um very few words about uh about
15:27
the the workings right so what you what you see here is that the Venture client um um is really um those
15:36
departments which are what we call the uh you know the problem owners right so the problem
15:43
owners they would work with the Venture client unit that’s the Green Dot so the Venture client unit is at Central
15:48
department or very can also be very decentralized and very subsidiaries around the world but they always engage
15:55
with the engineers or the it departments or the man facturing guys who are in
16:01
need of a technology that solves a specific problem they cannot solve themselves right so that’s the
16:06
difference between the Venture client unit and the Venture clients and um and what happens um or
16:14
what’s what’s kind of like the obviously the the goal behind this is that the Venture
16:20
clients um through a specific process that we have evolved and matured and refined
16:27
over the last really 10 years since I designed the first process at BMW was to
16:33
is to engage or become a long-term partner of the startup and for example
16:39
license the technology but obviously also to do an m&a acquisition right
16:45
because uh sometimes you want to be the exclusive client and if you want to be the only user that has access to this
16:51
technology this is when you acquire um a startup which you know every startup knows that you know this is the
16:58
so-called you know m&a exit where you join the large corporations with your
17:03
technology and then that technology is then used exclusively within within the Realms of that of that company and you
17:10
know as as mentioned before this you know this approach is um is is really now has been adopted by by Leading
17:18
companies um also across across many Industries uh
17:23
so it’s it’s not only you know industrial companies it’s um like like cars or Oro space it’s also getting its
17:30
way into into Financial Services um um like like large insurance
17:36
companies or large banks are also starting to adopt and use this model in order to access Technologies from
17:43
startups now over the last 10 years since I started you know this terminology
17:51
evental client and and created this model and the and the first unit around it I’m many times asked so what’s in it
17:57
for startups and you know um having done my years in in
18:02
technology startups myself in Silicon Valley where the main question always was show me your clients you know who
18:09
are your clients and show me your Revenue I’m always a little bit baffled by this questions you know what is why
18:15
is a why is a venture client relevant um so clients are relevant I think every
18:21
startup knows that and the VCS know that too but why what makes the Venture clients special well the fact that The
18:28
Venture client has processes decision systems to focus
18:35
specifically Focus specifically on startups just makes their uh makes them a better you
18:43
know um um um um a better partner for every startup and VC so first and
18:49
foremost the decision to make a purchase and to do an adoption is much faster so
18:55
we see Inc corporate that many times it takes two three four years years to get to the first real purchase order to the
19:02
first real purchase usage right um so the product Market fit is incredibly
19:09
accelerated if you work with good Venture clients because here we’re seeing time frames of around two to four
19:15
months right so much faster and and that means you can go much quicker into
19:21
gaining you know uh reference clients uh and and real revenue and that ultimately
19:28
you know drives your product Market fit which is critical for the growth a critical milestone in the growth and uh
19:34
and the success um journey of your company now the second very big benefit is that Venture client units the good
19:41
Venture client units are really also have built into their system to be to
19:46
give valuable feedback um not every startup product would work right away
19:51
obviously but obviously the core IP the core of the product if that’s you know good and especially you know unique then
20:00
this feedback from the client helps you shape um um your your
20:07
and refine your product um also for for for for other clients and um and good
20:12
Venture client units really have built it into the system to provide this type of feedback because um it really just
20:19
strengthened this kind of win-win um um um um mission that the Venture client
20:25
unit has now the other important thing is many times you have access to exclusive resources that you wouldn’t be
20:31
able to have as a as a startup itself you know for example if you are in the automotive sector on the Aerospace
20:37
sector well an Airbus or BMW that would have for example testing resources that allow you to test um um your your
20:46
technology much better than in a maybe University lab or Labs that you can afford um uh
20:53
yourself the number the number four you would obviously
20:59
can leverage rental clients for Branding in PR you know that’s why many times startups allow invest corporate
21:05
investors because it looks good uh in a press release you know this and this company invested in my company in my
21:11
startup hence my startup has a future well you can do the same and actually having a much higher impact by saying
21:17
look those are my clients correct and those are my Venture clients um and this
21:23
will help you also with with your brand uh with your brand growth and last but not least uh obviously a critical um
21:30
benefit is you grow your value faster without delusion of your Equity you know
21:35
so for each 100,000 Revenue you have an x 20 30 40
21:40
of valuation right so a million in in revenue from a venture client is worth 2
21:46
to 30 million in valuation of your company and all that without without
21:52
Equity delusion and without having another um person sitting at the cap
21:57
table or in the board meetings which I think is something that all venture all
22:03
startups cherish right so those will be the four benefits uh the five main benefits that
22:10
we see and um and here we wanted to show you a quick video a two-minute video uh
22:16
there’s a longer version out there on YouTube um where you can hear real startups that have worked with BMW in a
22:23
specific manufacturing challenge um about their experience with BMW as a
22:29
venture client yes um yeah this is a great story
22:34
to really see that the benefits that Reg listed are actually there startups do
22:40
experience exactly that um and it can be a game Cher for the success of your
22:46
startup and before I share the video just a quick note to the audience please
22:53
feel free to use the comment function if you have any questions I already see the first question here we’re going to
22:59
address all of the questions in the Q&A at the end so feel free just to type in
23:04
whatever comes to mind whatever you want to know all right then let’s listen to this BMW startup
23:13
garage success story project what the probably have never been done
23:18
before has tried that before what we are doing to Startup working on a single
23:24
project with the and probably have never been done before automated driving in the plant is a
23:31
function that allows us to maneuver our customer cars driverless inside our
23:37
plants to drive them from A to B we did it completely different to what you
23:42
might know from autonomous driving we don’t use any sensors from the vehicles but what we did is we installed sensors
23:49
along the driving tracks to remote control cars inside the
23:55
plants so for the development we had two startups on board so robotics they are
24:00
from South Korea they are experts in lighter perception software and the second startup it’s called otch from
24:07
Switzerland who were very experienced in the motion planning software those two
24:12
startups they seem to be the very edge of technology for this very unique
24:19
functionality the startup garage they helped us a lot screening the whole market for companies who are able to
24:26
deliver what we were searching for BMW star garage really helped us to understand what it is to work with the
24:34
big OEM like BMW and they helped us to be integrated into the purchasing system in a very short amount of time you have
24:41
to imagine at at the beginning when you’re a small startup you’re talking to a giant and very often they want all the
24:47
IP for for anything you do that was extremely different at BMW so kind of we
24:53
do not want your IP we just want to test your capabilities and we going to license it at Fair conditions which
24:58
showed us that it is really a fair uh game now we at the edge of entering the
25:03
real testing phase imp planting nothing think I’m really optimistic that we will get to do it complete driverless and
25:11
automated by somewhere in 2023 it’s clear this is worldclass technology and
25:17
if you do deliver on that there are endless opportunities to to grow and to scale as as a startup it is going to be
25:24
my personal and the company’s biggest Legacy to work with BMW because it is the single most important step for a
25:31
small startup like [Music]
25:39
us wow I think that’s pretty convincing of uh why Venture client units are such
25:47
a groundbreaking new invention really um
25:53
in that corporate venturing game not just for corporates but for startups
25:58
um and I think what probably startups really want to know is how does it work
26:06
in practice and what can you do to really succeed and for H for that
26:13
Sebastian is going to lead us through the process [Music]
26:19
um and let see yes and explain how startups succeed with corporate Venture
26:26
clients exactly thank you much and uh yeah I think uh I like this BMW success
26:32
story in particular because it addresses some also some challenges that startups might have during uh the process uh
26:40
working um with corporations and um yeah this the answer to this question is
26:46
actually how startups succeed with corporate Venture clients is uh also with a dedicated Venture client process
26:53
and we um as as Gregor said uh as a venture client unit um develop this
27:01
process over time iterated it and um therefore we uh confident to to to say
27:08
that this process really shortens the time from problem identification to the
27:14
actual piloting of a startup solution until the ultimate adoption significantly and that’s how you can
27:20
actually benefit uh from as a startup so coming to the process itself um
27:29
we always have those five faces in mind and I Qui want to quickly get you
27:35
through those faces and also um yeah highlight to you what you can take care of as a startup um to increase your
27:43
adoption likelihood and ultimately scale as you have seen with those startups in the success story so we are having this
27:51
phases discover assess by Pilot adopt um meaning we always start with a problem
27:57
at dedicated problem owner like Greer said uh that’s in the business has a particular problem and we want to find
28:05
the best startup solution for that meaning we are sourcing startups out there in the global startup ecosystem
28:12
and bringing those to the next stage uh the assess phase um as said the ambition
28:19
is to find the leading startup solution so we um assess jointly with the business unit what is the best um
28:26
startup for this particular use case if we have decided so we going to go into
28:32
the bu stage uh actually um buying uh
28:38
like a first pilot project and um then uh bringing that to the the pilot stage
28:45
and uh piloting the startup solution for the first time um and then uh ideally uh
28:52
the Venture client units as you have seen for example the BMW startup garage uh open Bosch um support the problem
28:59
owner um also in the adoption uh phase so what can you do in those faes as a
29:06
starup so first of all in the Discover stage it’s all about the problem as I said so we want to know exactly why your
29:13
solution is a great fit to this problem uh that the problem owner um an engineer
29:20
for example in the business unit um might have and um also highlight the
29:25
Strategic Benefit um for for this um problem owner um meaning um for example
29:32
also the return on invest um the the the speed U he or she could gain and so on
29:38
and so forth secondly in the assess phase as I
29:43
said we have um particular uh requirements by by the B business unit
29:50
um uh so the The Venture client unit for example of posos receives a specific uh
29:57
requirement by one business unit and um then we need they need to see okay so
30:03
which startup actually can fulfill those kind of requirements and which kind of
30:08
startup um can actually fulfill those requirements so that the problem owner The Venture client is happy to to
30:14
conduct a pilot project with the startup thirdly in the by stage make
30:20
sure that your solution is purchased by by the real problem owner um so I know sometimes you probably experience um
30:27
that uh it’s an high level management uh in initiative um but actually what the
30:33
Venture client unit aims for is to find the engineer actually using uh your
30:39
startup solution um and actually applying this to a real use case so therefore um that’s that’s really
30:45
important and then we come to what you what’s one of the most important steps
30:52
for for you as a startup the piloting and uh it may sound obvious but don’t
30:58
it up what we mean by that um don’t boil the ocean in a pilot project don’t
31:04
um conduct any kind of uh yeah piloting or pu that you’re not asked for be the
31:11
expert and uh deliver on what what you have promised um in in the byy phase and
31:17
that increase your likelihood significantly uh to the adoption and what we mean by adoption is
31:24
also showcase your success um what you have done in the pilot Pro project uh with the Venture client and uh scale uh
31:32
the Your solution ideally across um the whole company so that was um uh on the very
31:40
high level um some some examples um I want to give um in in in the next uh
31:47
slides so to speak for each of those faces before we Deep dive into each of
31:54
these phases I would love to ask the audience if this process especially the startups
32:00
here is this does this process look familiar have you seen that when you were working with corporate clients have
32:07
you seen a different type of um process and yeah I would love to get the feedback if this is what you have
32:14
experienced as well and and now back to Bastian let us know how they can succeed
32:20
in each stage yeah that’s actually a a really good point Z because that’s one
32:25
key recommendation we can also hand out to to the startups out there ask
32:30
whenever you have a company you want to work with ask whether they have a specific process um when it comes to uh
32:38
purchasing and using startup technology um the process might look a little bit
32:44
different sometimes had a has a another wording and this is what we uh have
32:49
experienced as a best practice um but in general I can always recommend ask the
32:55
company you want to work with whether they have such a speciic specific process and uh as I said coming uh to to
33:02
the phases a little bit more um specifically so as I said the Discover
33:08
stage is always about the problem uh solution fit so um if there is a
33:14
dedicated Problem by a business unit The Venture client unit seeks to uh to
33:19
Source the best startup Technologies and what we need by you guys is actually a
33:25
comprehensive Insight in your product meaning um give us uh um the the
33:31
characteristics what what your product can actually do um also provide insights
33:36
for example like a a showcased here with this oil sensor um do you fulfill any
33:41
ISO standards um do you fulfill any IP um security class uh standards um
33:50
whether you provide an API to sap for example and uh so on and so forth and
33:56
that’s really key for us um in the Venture client units to assess um your
34:02
uh startup solution and identify you as relevant secondly strong branding and
34:08
multi-channel communication is key um so um sometimes it’s in the beginning it
34:15
might not clear for the Venture client okay um is this relevant for my industry and so on so we uh recommend um to for
34:23
example launch some white papers also showcase your industries also show some
34:28
success cases um that you you have done um so that this can be um investigated
34:35
and thirdly also showcase your references so as I said sometimes for
34:41
example if a venture client is active in the insurance industry um they want to see okay are there any references from
34:48
other uh corporations uh can they be applied to my use case and so on and so
34:54
forth so therefore strong references um are key and also a quality um Assurance gate so
35:03
to speak uh so if it works at another client it might also work at the client
35:08
um uh specifically that has a use case at hand and lastly and I think that’s a
35:15
really important point and also changed some of the um paradigms um the the
35:21
corporates we’re working in so um uh corporates are not active um solely in
35:27
Silicon Valley and Israel to identifying startups it’s actually WIA databases uh
35:34
showcasing some of them here traction pitchbook um so if you’re a good startup
35:40
make sure that you can be found in in those databases um because that’s
35:45
actually how uh the the solutions can be identified for a particular problem and
35:51
if you’re listed in those databases um we are we are sure that um also the Venture client unit can find you for the
35:58
specific use case which maybe a small comment in the past it was all about you
36:04
know this thing about apply here correct application driven corporate
36:09
venturing and this is totally old school and good Venture clients they will find
36:15
you they won’t wait for you to apply so you need to be able to be found um and you don’t have to go around
36:23
and see what Venture client unit website is having I don’t know what challeng to which you apply for correct so being in
36:30
a good relevant database is critical and those are two of the most relevant ones
36:37
crunch base for the for example is just not enough any longer yeah true good
36:44
point all right and if the Venture client actually identified you as
36:50
relevant then it comes um to the assess stage so um reducing the funnel only a
36:56
couple of startups uh that uh are going to be assessed for the for the use case and um here we can um
37:04
strongly recommend provide your unique selling proposition data um for the
37:11
in-depth assessment so for example how how what’s your data accuracy that you
37:17
can can achieve um what in what kind of speed can you achieve um uh a certain
37:23
calculation um what kind of Integrations do you offer to corporate
37:28
um software like uh like Microsoft slack Salesforce and so on and so forth so um
37:34
highlight those and highlight those specifically relevant for the use case
37:40
and that’s also leading to the to the next Point um uh what Venture client uh
37:45
clients and specifically The Venture client unit conducts is um demonstrations meaning demos and this is
37:54
not a sales pitch this is a technical demonstration from your side on what your product is actually capable to do
38:01
and therefore um prepare it well and really customize it to the specific use
38:08
case so we often see startups um want to boil the ocean in in in those demos
38:15
showcasing every kind of feature what they what they have in in stock and we
38:20
we can recommend and that for adventure client for the business they only care
38:25
about their specific use case so showcase this specific feature um
38:31
maybe one success success story that that you have conducted in this um for
38:36
this use case and then this increases um the likelihood likelihood of going to
38:42
the next stage and lastly also showcase um the
38:48
return on invest um meaning um what what your solution uh what needs to be done
38:54
uh in order to to integrate Your solution how much effort uh is needed
38:59
but also on the other hand how much can you gain uh the The Venture client so is it a cost saving is it a revenue gain
39:08
and also how much um is really beneficial um to also then relating this
39:14
to the adopt stage increase the likelihood for um for the adoption and for a successful
39:20
piloting and and and the assess is also a game changer to what we know before what you may know before from especially
39:28
accelerators when it’s all around this pitching you know pitch your startup in
39:33
10 minutes and if you can’t pitch it in 10 no in five no in three minutes you’re
39:38
out and this is bull crap right a good Venture client puts a lot of money and
39:44
resources into in-depth assessment if you’re not the best Communicator of the world nobody cares they care about the
39:51
strength of your technology and um and there’s enough time
39:58
and you can dedicate you know good amount of work in order to Showcase that this technology is not only good but
40:04
that it’s also good for that specific for that specific
40:10
Corporation and I think this may the answers uh one question that came up in
40:15
the comments which is um if the companies who have adopted the Venture
40:20
Clan model and looking at strategic returns or financial Returns the fact that they’re looking at the
40:26
technological fit um and not just on the return on investment already showcases
40:33
it’s really about the technical um transfer but maybe Gregor Sebastian you can add a couple of words here to answer
40:40
this question yeah maybe I can I can start with that um so I think the one of the
40:47
key aspects of this me client model is that you as you are linked to a direct use case it’s always about um
40:54
quantifying this impact uh in in the business impact in financial numbers and this can be measured e either in like um
41:03
new Revenue gains for the business unit or in cost savings and I think what’s
41:08
valuable also as a startup is that you can actually support the Venture client unit and in conducting those
41:15
calculations um so you maybe you have a better idea of what variables actually
41:21
you can provide a benefit uh for and also can quantify it um um more easily
41:29
with those numbers that you already have from your experience what’s actually the
41:34
um business impact for this part particular use case and besides that of course there are some strategic benefits
41:43
accompanying um this business impact uh I’d say so um this might be um like
41:49
relieving business units from TDS work and so on and that’s also I think the Strategic benefits that come naturally
41:56
along with this business impact yeah and and to add to
42:01
this the you are very well trained in defining a business case because that’s
42:08
what leads you to venture capital right there’s no venture capitalist who says oh this is cool technology let’s invest
42:13
they will always ask what is a client going to pay for that what’s the return
42:18
of investment of your client when they use your technology at least the good
42:24
VCS will ask you that question so you have this information so use that information as an argument
42:30
and also as a way of making decision processes faster at the Venture fly unit
42:35
by saying okay those are the calculations that we’ve been doing now let’s start adapting these a little bit
42:41
because every company is different but in general terms we see an xyc return on investment when uh when our users our
42:49
clients apply our technology
42:54
y all right um leading to this um next phase um so uh ideally The Venture
43:02
client uh has selected and is able to select after your product them we use
43:08
for a um pilot project then we moving on to the next phase the buy phase and um
43:15
this is not about building um minimum viable product um with a new fancy
43:22
interfaces apis and so on we are talking about the Bas as a minimum viable
43:28
purchase so what this means is the following so um we strongly um encourage
43:34
you um to not generate any kind of Ip in the pilot project so um we have seen
43:41
that uh the The Venture clients all and the startup uh run in a lot of legal
43:47
issues at first and secondly it takes a lot of time if you put in some extra
43:53
development um uh efforts and so on and run into a eight to 12 months long PC um
44:00
you want to showcase that your solution works at the Venture client quickly and
44:06
immediately um plug and play um so so then uh you can think about those
44:12
additional efforts in in the adoption the second Point um I want to
44:17
make here is that the data ownership uh data ownership uh is at the Venture
44:24
client meaning that it’s not about integrating any kind of Life data in the
44:30
pilot stage H we recommend always using uh some historical data set um so that
44:35
you can Showcase with your off the shelf solution hey this really works I can uh
44:41
you can compare it to your internal kpis and I um guarantee you here’s a
44:46
Improvement of X so um that’s very important uh in terms of data ownership
44:52
and also then you don’t run into any kind of legal issues here thirdly
44:57
avoid an a API setup in the pilot project as I said usually we recommend to have a two to
45:04
four months pilot project testing something off the shelf and um therefore
45:10
just apply your software your Hardware to the specific use case and think about
45:15
any kind of plugins for Life data and so on in the adoption but firstly prove that you can actually do it um because
45:22
uh that’s that increases also the likelihood of being adopted by the menure
45:28
client then um as as we initially outlined um the purchase order should be
45:34
issued by one legal entity so um it’s not about like any kind of um different
45:40
um yeah mid midlevel managements um issuing a a purchase order for maybe a
45:47
use case that’s not needed actually you want to have the real problem owner the engineer The Venture client at hand um
45:55
that issues the the purchase order so that you can showcase your Sol solution directly at this business
46:02
unit then we also recommend to stick to the standard NDA and terms and conditions because those terms and
46:09
conditions usually only apply for the duration of the pilot project um saying
46:14
that you can um yeah directly move move forward showcase what you can do in a
46:20
pilot project and then negotiating uh additional terms um extra um General in
46:28
terms and conditions requirements that you might have in the adoption because then um this is going over to C
46:36
procurement and that’s um then another story but you have the best position
46:41
after showcasing what your technology can actually do and um we recommend uh
46:47
as there are of course the discussions about the pricing um we refer to to this
46:53
as a unit one purchasing so this is actually the first unit often that you sell to the Venture client to the
47:00
corporate you want to work with and um therefore of course you will get reimbursed for your efforts but this is
47:07
uh at this stage not a huge Revenue case um but it equips you um for the best
47:13
position for the adoption um because if you can showcase that your solution works then this pilot project will will
47:21
move um for sure to serial procurement and then you can renegotiate okay what
47:27
our software licenses for how many users for how long and so on and then um you
47:33
can discuss all that but first prove that your technology um can work and
47:38
similar to the to the previous question about uh the business impact um you can
47:44
support here so with your experience um D drive the definition of a compelling
47:49
pilot project so um showcase what kind of object objectives um can be achieved
47:55
within this two to four months pile phase also what you need um as sort of
48:01
like data input for example from The Venture client um showcase any kind of
48:06
obligations that each party has and very very important showcase um and Define
48:13
together with the Venture client a success criteria that you can actually also fulfill so this means also kpis
48:20
that you can um achieve a certain accuracy rate that you can actually measure certain data that you can
48:26
integrate a certain data format whatever but it should be a tangible success criteria tangible kpi and that uh is
48:34
going to be listed in the request for proposal and then you’re very well
48:39
equipped for the pilot um project and if this is um going through purchasing you
48:45
end up in in this phase um and just very briefly as we as we said be the expert
48:51
not the fool um you you just need to Showcase what your technology can do for this particular use case um as I said
48:58
don’t boil the ocean verify the technical viability according to Success
49:03
criteria outlined in the request for proposal also and I think um this seems
49:10
of course quite natural but it’s very important to stick to the project plan um so um exactly F fulfill the
49:18
Milestones um uh do not do anything fancy around it just fulfill what your
49:25
what you agree to in the RFP and of course no intellectual property and Generation generation as we previously
49:32
um discussed and a last point that I want to make here is that um you can
49:38
also support and prepare the adoption um not only by sticking as I said to the
49:44
project plan fulfilling those kpis but actually if you see maybe after a second
49:49
milestone together with the business unit hey our solution can actually provide this benefit the Venture client
49:56
is happy the problem owner is Happy um you can um then for example um ask the
50:02
Venture client unit ask your corporate is there something where we can showcase this pilot is there something where we
50:08
can together with the Venture client uh jump on a stage and say hey this is what we have done in the pilot project it was
50:15
a success and now we are able to to um roll it out so that’s um what uh enables
50:22
you for a um adoption um case and usually the really good Venture client
50:29
units have an adoption rate of up to 60% so 60% of the startups that go into a
50:36
pilot phase are actually going to be adopted um which also enables you to
50:42
further grow with Venture client units lastly before I’m I’m going to
50:50
hand over um back to to Gregor in the adoption phase prove the return on
50:56
investment we said initially the business impact is going to be calculated you can support the the
51:01
business unit with that but also in the P project you can see okay does it really work do we need to make some
51:08
adjustments to the business case and and then you can um highlight what savings
51:13
can actually be generated and that gives you the Buy in also then on a higher level um to scale across the
51:21
organization and of course I know there is some patience and persistence
51:26
involved so um we said after the pilot project it’s going over to seral procurement we know that um this this
51:34
might take some time um so you need to renegotiate some terms um you need need
51:41
to negotiate software license Packages Etc um but with the pilot with this
51:47
technical pilot project you actually have the best proof of showcasing that your solution actually works and um we
51:55
can see that we can increase this adoption likelihood and um going through serial procurement with a a successful
52:03
pilot project that concentrates on a specific technical use case and lastly
52:09
um as I said um we we test this in a minimum viable purchasing setting so it
52:15
can be that your solution will only apply to a test bench setting um so be
52:21
be make sure that you are also open to customize um some of your features that
52:26
you’re actually am having um and uh then you’re good to go for ex success
52:32
successful adoption and um that wraps up the process that we have developed over
52:37
time and now I’m handing over to Gregor for some final words or maybe just be
52:43
first yeah I actually before um GNA ask Gregor to share his top advice for
52:49
startups let’s talk a little bit about the questions in the chat um because they relate to what you’ve just
52:55
explained Sebastian Maybe um the first one how long in your
53:00
experience does it take from discovered to buy or maybe even you can say something about the entire duration of
53:06
that process yep um very interesting point
53:11
and yeah first of all we can see we can significant significantly shorten this
53:16
this amount um because for example for um discovered to by stage I would say um
53:23
four to six weeks can be can be a good estimate um of course Sometimes some use
53:29
cases needs to more needs to be more assessed in in depth but that’s uh roughly the um time indication I would
53:36
give and um I I also need to say that there were some success cases where it
53:42
took me two weeks from discover to Pilot so if this is a really urgent problem H
53:48
The Venture client unit can speed it up immediately um so that the startup can
53:53
uh showcase its solution um the directly in in the pilot
53:59
project and regarding the pilot project we have this question here what’s the difference between trying testing
54:06
products and services and purchasing products and services in the Venture client setting yes so that’s the
54:14
purchase order you have to receive a supplier number a real supplier number
54:21
and an official purchase order that is your that’s if not the corporate is not
54:28
your client something like a I don’t know you are in a lab and you do okay
54:33
here’s some money to conduct an experiment no you need to have a supplier number and the purchase order
54:40
then that’s that’s the difference that’s a differentiator okay um so this is where
54:47
we are the by stage that’s where you you should get the purchase order and
54:53
there’s another question relating to that stage um someone wants to know if you can expand on the no IP a API setup
55:03
um and yeah what are the concerns about this yep I think valuable questions
55:10
because sometimes of course we get this as a requirement whether there’s for example an sap API how um however we
55:17
wouldn’t recommend to do this in the pilot project as I said the adoption is a different story then you of course talk about an API setup but what we can
55:25
see in the pil project that it first of all it takes time it extends the pilot project um what Greg initially said what
55:33
you actually want to avoid to those 8 to 12 months pilot projects uh or three
55:38
years until the first prchase orders um are issued so therefore we wouldn’t
55:44
recommend it in the pilot stage and also that’s a term um which relates to also
55:50
sort of like data security so plugging in live data is a totally different uh
55:55
story then as I said using historical data sets to prove that your solution actually works so therefore we highly
56:02
recommend to um set this up in the post-pilot stage all right um so if there are more
56:10
questions regarding the process please feel free to use the comments we do have two questions regarding the setup of a
56:17
venture client unit um number one would be um if and how a small to mediumsized
56:26
business business can Implement Venture clien thing without having that whole corporate Venture clien team in its
56:31
background can such a function be outsourced for just a few problems yeah you you can have a
56:39
marketing activity right um without a marketing department right I mean
56:45
especially in in smaller companies you know you may do you do a lot of HR but you may not have a specific HR
56:51
department same counts for Venture clien thing but definitely you need to have have some
56:57
education around the Venture client model and a good proven Venture client model 27 Pilots for example offer
57:04
certifications so what we are seeing is in smaller companies there are teams formed with specialization in Venture
57:11
client activities but sometimes those those companies are too small to create
57:16
a separate or dedicated let’s say organizational unit um and um but
57:24
obviously the the people working or doing the work and obviously that can
57:29
also be outsourced I mean you can always use external support there are more and more Venture client solution providers
57:35
um we’re happy to see some competition arising from from from from all parts of the world and um but um yeah make your
57:43
homework here too to make sure that you’re not working with um somebody from the old world who just you know changed
57:51
um the bottle but not the wine right right um on the different on
57:58
another Spectrum um if a company if a corporate is a
58:03
conglomerate very decentralized um we have that comment here that each business unit should have their own
58:09
Venture client function that um the corporate itself should have Venture client functions as Standalone what’s
58:16
your take on this when a company is decentralized how does venture clien in
58:22
work then because it’s a bit harder if it’s not centralized and cannot be all drawn into one Venture client unit
58:29
well actually the Venture client model is a is a fun is a is a model that allows for decentralization corporate venture
58:36
capital is very centralized because there’s huge amounts of money involved Millions per startup right and what
58:42
we’re seeing is that highly decentralized corporations like Bosch for example they have multiple Venture
58:48
client units even with uh their own Brands but they all follow the same
58:53
basic core process which then allows for synergies among those subsidiary Venture
58:58
client units and also of benefit for for the startup and um so we definitely
59:05
recommend for large conglomerate multinational corporations to have a center of competence at the headquarters
59:12
that guides strategy uh Mak sure that there’s a master process uh that
59:17
everybody follows that there’s Master technology to guide the um you know the the the the activities of a venture of
59:24
of venture clien in across a corporation but then each country or each let’s say
59:29
subsidiary um can have their own Venture should have their own Venture client unit team to then serve the more local
59:35
needs of the subsidiary in uh in in that country or for a specific product um
59:41
area yeah and specifically talking at startups we’re just addressing today in
59:48
this webinar it’s um it’s not about reaching the regional startup ecosystem
59:54
it’s really about reaching the global ecosystem system so of course it’s great to have these Regional hubs but also
1:00:00
always having that Central address where every startup from anywhere in the world can knock on the door and make sure to
1:00:07
get that entrance in um is important because otherwise there might be the
1:00:13
idea of just focusing on the regional startup ecosystem and not really working
1:00:18
with the best and drawing out the most um benefits that you could yeah the
1:00:24
regional Venture client unit still need to globally Source the startup the regional Venture client unit addresses
1:00:30
the regional local problems but the sourcing is always Global because you
1:00:35
want to have the best startup of the world which sometimes has to be a local startup out of let’s say regulations but
1:00:42
decentralizing Adventure client unit is about addressing the local problems um
1:00:48
and um but obviously again with um you know the global supply of startups
1:00:57
so we’re actually a bit over already we do have one last question um it’s more
1:01:05
question of opinion maybe um we have the question especially to Gregor do you
1:01:11
consider the recent Apple jet GPT um deal as a corporate Venture client deal
1:01:19
yes of course and it’s a great and obviously the first major client of jgpt
1:01:25
was Microsoft and uh look at how many
1:01:30
billions Microsoft made by implementing CH GPT technology first just in let’s
1:01:37
say also market share of of Bing and also in terms of valuation just remember
1:01:42
that when Sam Alman from jgpt was fired for like a week right on
1:01:48
a Friday afternoon you all remember in the last hour last half hour on Wall Street the Microsoft stock uh um um um
1:01:56
declined 1. 1.7% so that’s billions that
1:02:02
Microsoft lost in value because investors got scared of the fact that
1:02:08
Microsoft would not be able to leverage um um open eye technology for much longer and they punished that um you
1:02:16
know immediately right so and yes apple and every company who works with jgpt a
1:02:22
startup to ends up being a startup in the moment of an IPO or an acquisition correct this is when the startup ends
1:02:29
ends its stage its startup stage right okay we’re already over time but I
1:02:37
would love to end this webinar with Gregor you’ve been in both shoes you’ve
1:02:44
been a Founder you’ve been a head of a venture client unit can you summarize
1:02:50
your key takeaways your top advice for startups wanting to succeed with Venture
1:02:58
clients yes um first and foremost when you hear Venture client think about that
1:03:05
those are your special early adopters of your technology that are critical for fast
1:03:12
product Market fit without delusion you know that’s really what you should associate to that
1:03:17
term Venture client secondly not all corporate Venture
1:03:23
clients will be good ones we are seeing more and more corporates who just claim to be Venture clients but they’re not
1:03:30
good ones right they have a bad process or they don’t have really a special process at all their teams are not
1:03:36
trained they don’t have a venture client unit you know it’s like soccer right soccer is a great game but just because
1:03:42
you say you know I’m a soccer player doesn’t mean you’re messy right so go go out and look for the messies um and um
1:03:50
and be and and and and give them the privilege of working with your technology be prepared right is very
1:03:56
important a venture client good Venture client is demanding it’s not a oh I’m a
1:04:02
venture client so every startup please come into the door now this is this is like you know that’s like the Harvard
1:04:07
Business School plus MIT plus Caltech together right in in in in terms of
1:04:13
being very selective because corporate problems are you know challenging problems and um the corporate doesn’t
1:04:20
want to run the risk of working with a startup unless the start startup is really better um um um so you got to be
1:04:27
prepared you got to be really good and then pilot for adoption and here again
1:04:33
to this question in the middle of the seminar look for the real problem owner don’t settle for a pilot with some lab
1:04:40
in Israel or in Silicon Valley or in some Berlin hub no you want to Pilot
1:04:46
with a real problem owner with a real use case you want to pursue a real purchase order with real dollars or
1:04:51
Euros behind it and where you can see and measure the real impact on the
1:04:57
business um which is something that will make us a startup proud because that’s why you go through all this you know
1:05:05
efforts to start a company in the first place that’s the mission in your life and you also make your clients happy
1:05:11
which will also be you know very good for for your as in your team and as a
1:05:16
Founder so much for my side thank you very much thank you um yeah I hope we
1:05:22
were able to answer all of your questions you can continue to comment on
1:05:27
this um event post so we will try to address everything anything that’s unclear this video will continue to be
1:05:35
um available um so feel free to also share it with other Founders in your
1:05:40
network um the more startups understand how to identify good Venture clients I
1:05:47
think the better for everyone the better for Venture clients as well if startups are really truly prepared for what’s
1:05:54
ahead of them and um so yeah from my side thank you Sebastian thank you Gregor for your insights it was lovely
1:06:02
hearing this startup side of venture cting and I’m looking forward to more
1:06:07
webinars with you thank you very much thank you thank you and have a lovely weekend