Webinar

Venture Client Best Practices: Maximize strategic benefits from startups with top Venture Clienting

In this webinar, we dive into best practices for Venture Client Units. Venture Client Units are a breakthrough corporate venturing vehicle. We show that while most companies act as Venture Clients by buying and using startup technologies for strategic benefits, not all are achieving optimal results. Learn from our extensive experience and research with multiple leading Venture Client Units across over 10 industries. Discover key strategies and insights to enhance your company’s success with startup collaborations.

For more information, see our research at https://stateofventureclient.com/

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Transcript

0:00
welcome everyone to this webinar we are very delighted to welcoming so many people um so um this webinar is um based
0:09
on insights and best practices from our recently launched Venture client report
0:15
um we launched it in April um 23 and today we want to put a little bit more
0:21
emphasiz on how to enhance the Strategic Benefit with excellent Venture cting so
0:27
uh we want want to show you some best practi IES and insights on how to bring your Venture cting activities to the
0:34
next level and we therefore provided um some some really good insights I think
0:40
for you um that are pretty much Hands-On all right who who are we um I’m
0:46
here with um the 27 pudles founder Gregor gimi um and we can briefly
0:51
introduce yourself yes yeah good morning delighted to see so many people interested in in
0:57
the topic I’m Gregor I’m the founder and CEO of 27 Pilots I spent many years in
1:03
in Silicon Valley um where I learned a lot about startups uh Venture Capital
1:09
venturing and so on after Silicon Valley I joined BMW um where I worked from 2012 to
1:16
2018 there is where I came up with uh and coined the term Venture client
1:22
created and launched the world’s first Venture client unit the BMW startup barage which I think today is uh the you
1:29
know kind of like the the reference Venture client unit for many other Venture client units that have emerged
1:35
since and uh since 2018 I I um I work at 27
1:41
Pilots all right then I’m going to continue here my name is Sebastian shaer I’m leading the strategy inst structure
1:47
Squad at 27 Pilots meaning how we um set up Venture client units at new clients
1:55
but also scale Venture client units at existing clients and um previously to 27
2:01
Pilots I was a student at Stanford University um really being at the at the
2:06
core of the startup ecosystem and Diving deep into that and yeah Gregor do you
2:12
want to spend some words on our academic partners for this study yeah since the
2:17
very beginning when I uh was still working at BMW I I saw the need um and
2:23
the importance of involving the world of Academia into researching and uh and through that
2:29
advancing uh the Venture client process model best practices um around it so since uh the
2:36
early days in in BMW and now also through with many Pilots we’ve kept the
2:41
engagement with leading universities and the partners who participated in
2:47
this in this research the state of venture client are the European business school the eth Zurich inad business
2:54
school and University Pas Paso and also the v in in cand so thanks to uh those
3:03
universities for your contribution all right and then we’re
3:08
going to come quickly to our agenda what we’re going to do today and what we’re going to present to you guys so um
3:15
Gregor will um will introduce like the Venture client model and also its
3:20
Origins and how he coined the term then we will come to some definitions that I
3:26
will introduce um on the based on the Venture client report that we launched and with some insights um based on on
3:34
those statistics then we also um uh came up with some Venture client levels so
3:40
that you can put yourself really in the shoes of where you are in in your Venture client unit journey and uh
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lastly we going to close the session with some best practices for each of those levels so that you really can
3:53
boost um your uh Adventure client unit and bring it to the next level and of
3:58
course there will be some time for Q&A so feel free to shoot us some some questions in the Q&A or previously in
4:05
the chat so that we can take them up accordingly all right and with that
4:10
being said we’ll dive into that and I hand over to Gregor for some first
4:16
introduction um slides all right well whenever you talk about Venture cening it’s important and
4:23
as as you do this also in your companies to remind your audience about the relevance and the importance of startups
4:31
because that’s why we build Venture client units to to leverage
4:36
startups because they are becoming or they are a critical resource of of competitive advantage and we’re seeing
4:43
that today uh for more and more companies really for for any corporations and we also would like to
4:48
stress that it’s beyond a resource for Innovation um as startups do not only
4:53
contribute their Technologies to bring out new business models or better products they ALS Al critical for for
5:01
processes in manufacturing in it in Logistics in HR so really across the
5:08
value chain and on the right you see uh we we we pictured some
5:13
of very impactful relationships between corporates and startups that made a huge
5:19
impact on um on on the corporate so for example just to pick the first fiser
5:25
when they established a partnership with biontech before covid and before btech went public in
5:31
2018 um through the biontech technology that you all know of and probably have
5:37
running in your blood fizer made an additional 35 billion in Revenue Apple
5:45
in 1984 made a partnership with a small garage based startup called Adobe and
5:52
that partnership allowed Apple to become the leader in desktop publishing which was a multi-billion dollar market way
5:59
big when in in the80s and I think these days everybody’s talking about J GPT and
6:06
um and you can already see that the partnership between Microsoft and jgpt has boosted the usage of Bing by
6:14
15% so put that in numbers so um startups are critical for competitive
6:21
advantage and this is really the basis and why we have Venture client units and
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why it’s important to be good at Venture cting all right so what is Venture cting
6:34
so here’s a chart we’re using to visualize not only what Venture client is but also the difference to corporate
6:41
Venture Capital into accelerators what you see is in the middle of startup and the startup has one product and the goal
6:48
and the the basis for achieving a benefit a Strategic Benefit meaning a better process a better product less
6:55
cost more revenue is by bringing this technology into the values chain of a
7:00
company putting into product into process just by using really being a
7:05
client and we call this a venture client a user of their startup technology you gain an immediate um Strategic Benefit a
7:13
corporate venture capitalist primary transaction is buying a minority non-controlling stake of a
7:19
startup so it’s really an pre-step towards adopting a product because the
7:25
VC the corporate VC will never use a startup technology correctly he first invests and then he tries to bring that
7:32
technology to the corporate so um here we have an equity transaction in menure
7:37
cting we have a technology transaction and the accelerators are generally not a
7:43
technology transaction they’re no equity transaction either it’s it’s basically just a getting to know uh each other um
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it’s kind of like a a a a a a front end before you engage uh with uh with
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startups so to be good adventure clien thing and to be
8:03
able to scale the adoption of startups and to be able to serve the whole company and uh and various strategic
8:10
purposes and given also the complexity of the global startup ecosystem it’s important to establish a
8:17
unit an organizational entity that is dedicated has dedicated resources
8:22
processes a team uh that conducts only Venture client um um activities and
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that’s what mean by Venture client unit so a company can be a venture client without a venture client unit but if you
8:36
really want to boost your benefit from startups that’s where Adventure client unit becomes a critical element in your
8:47
organization so uh why about this research well we see there’s lots lots of research around the supply side in
8:54
the startup ecosystem so startups and investors so the people who create new technologies who fund new technologies
9:01
but we see a research gap on the demand side for startup technology um that’s um that’s really
9:07
that’s really missing and that’s when we um when we thought about you know it’s
9:14
really this going into uh into companies uh that buy and use startup technology
9:20
that that Acquire startups so who’s researching uh that part of the of the startup ecosystem we saw a big gap here
9:28
and this is the reason why we launched the state of uh Venture client research and report and we intend to do this
9:35
every year just as a note this uh report and this research has been conducted
9:41
globally and we both looked not only at the companies who use and buy startup
9:47
technology for strategic purposes we also look at the startups um in in in
9:52
and and how they describe and how they evaluate their relationships with their
9:57
Venture clients so we get um data from uh from both uh from both
10:03
parts uh which we think makes this uh makes this report very
10:08
solid all right and based on this report we would like to provide you with some
10:13
uh key definitions that we actually asked also the participating companies as well as startups and one of the first
10:22
um questions and I think that’s also maybe a pressing question for you um is
10:27
what actually is a startup and we we have surveyed the companies and 65% of
10:34
them say age of a company defines a startup some say meure Capital
10:39
funding they say F founded by entrepreneurs not companies
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53% they have a lean organizational structure and scalability of their
10:51
solution they have a revenue growth um as a goal they have a certain cre
10:57
creativity of the team product Readiness 24% the existence of Ip 18% and um some
11:06
other attributes to define the store up and I think what’s crucial here to emphasize is that a I think and that’s
11:14
also maybe stereotypical that most uh Serv companies still Define a store up
11:19
by the age of a company um whereas we see like product read Readiness as well
11:27
as the existence of Ip like intellectual property for example in the form of
11:32
patents is relatively low scored um among Serv companies and this is
11:39
actually one of the crucial attributes we associate with a startup when we
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conduct vure cting activities so here’s our definition that we apply across
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different vure client units and of course here we must say that the the the
11:56
definition of startups varies also across SE sectors but this is one um
12:01
that we use as I said throughout different Venture planting activities so
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um there we say um stard up is defined as a non-listed private company meaning
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it’s pre-ipo it’s not publicly listed on the stock market it’s still private founded
12:19
by its founding entrepreneurs meaning also like a dedicated expert team that
12:24
put in um its expertise and they solve strategic relevant problems with a
12:30
scalable product and I think this relates perfectly to what we saw in the stateof Venture client report that um a
12:37
scalable product um meaning that it’s not about consulting or um any service
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uh Solutions we we um look at startups particularly that have a rade product
12:50
and that’s scalable and that’s coming along with protected intellectual property um as I said for example in the
12:57
form of patents and P the algorithms and this is crucial because this is the key
13:04
Strategic Benefit that a venture client could gain um it’s not about like in inventing something inhouse which might
13:12
take like two years or um uh yeah coming up with new patents yourself it’s a
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technology that’s outside of your company that you could leverage startups
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also are we see fundable um and that’s a key quality criteria for us when
13:28
evaluate creating different stups in which serious funding stage they are which investors they have however this
13:35
is not generally a um yeah definition of of startups um we also left out here age
13:42
of a company as this is not a defining attribute um we rather look at like um
13:48
if they have for example raised recent funding uh if they are more than 10 years for
13:55
example coming to another definition and terminology is um Venture client itself
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so we ask um the the surveyed Venture clients and startups um do you use
14:07
actually Venture planting in your company or have you ever heard about this term and I think here we also see a
14:14
differentiation between startups and Venture clients so most Venture clients
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um have heard about this term um Venture cting however it’s not used within their
14:25
company and on the other hand we see the startups have never heard about vure cting Al although it is a key potential
14:33
sales channel for them so a unified Venture client terminology is missing
14:39
and we uh hope to raise more awareness about Venture cting in the in the future
14:44
and you now might wonder what actually is a venture client um so it’s as grig
14:51
said a company that purchases and uses startup Solutions with the purpose of obtaining a Strategic Benefit um you can
14:58
also look that up in Wikipedia and you you also can see here
15:03
that when we survey The Venture clients in our survey that every company has at
15:09
least one spot um from a startup so every company is basically a venture
15:15
client if they have at least one spot from a stup and this is also the the case definitely here in our state of
15:22
venture client report and with that we want to introduce you to different Venture client levels and um this will
15:30
be done by Gregor in the next section all right so um yes we have see
15:37
we just saw that every company that buys from a startup is a venture client whether you know that this is a startup
15:44
or not whether you do consciously or subconsciously it doesn’t matter you’re still a venture client and now the but
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obviously they are different let’s say levels of of venture clients and here we
15:56
Define the Spectrum and around the level of institutionalization so what we see
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is many many informal Venture clients that conduct informal Venture client activities like for example BMW in
16:09
1996 uh when they um established relationships with startups in Silicon Valley or in 2001 with Google or in 2002
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with the mobile ey correct though those are informal Venture client activities um there’s no dedicated process uh
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resource or decision systems at the other end of the spectrum is a high level of institutionalization
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and this is when a company decides to establish a dedicated unit with um a
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dedicated process with a brand with budget kpis uh and so forth and those
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types of companies are um you know for example BMW or or an open
16:45
Bosch the level of institutionalization um as we have seen in this report in over the years has a
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strong impact on the Strategic Benefit you can generate from startups um and
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strategic impact we Define as around profit and revenue that you
17:04
generate through startup technology the Strategic impact is also function of the number of assessed topics or problems uh
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that you’re solving that you’re learning from where your company’s advancing and uh and with that number number of
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problems that’s how you uh how we Define the Strategic impact and what we when we when we
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cluster the different types of of companies we put them into three levels
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um by the level of institutionalization and by strategic impact so what we see is that companies
17:37
with informal Venture client activities level one they have low level of institutionalization but they also have
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a low level of impact corre they they conduct activities with not so good startups with few startups um many times
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those relationships end up not generating any impact or low impact on
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the level two we see that some companies start to intr institutionalize um Venture client activities for example
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often we see companies that have a corporate Venture Capital unit um that
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has you know a team of people who is dedicated around you know establishing Partnerships into for the invested
18:14
portfolio startups here we see a you know a stronger strategic impact but not
18:20
much stronger sometimes we even see that the Strategic impact decreases um from
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from a level one and we’re we um see the highest strategic impact is at dedicated
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Venture client units which is then the level uh the level
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three in terms of numbers you know obviously number level number one if you
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look at all companies with over billion dollar Revenue worldwide which are you know over over 10,000 it’s obviously 99%
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a big big percentage is is in level one we see somewhere around th 2,500 Venture
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client level two Venture clients those are as said those kind of partnership
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teams within cbcs or within accelerators or within the Innovation departments and
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then we see a growing number of dedicated Venture client units really on a global basis not just uh around
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Germany or or Central Europe but also for example in countries as far away is Chile that um is establishing dedicated
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uh Venture client units and that number is growing and we foresee that number to to to grow um especially taking away
19:35
from the number of companies in level two and yeah we also launched a a poll
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here in in the in the chat so feel free to put in where you see yourself in this
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Venture Clan journey level one to level three so we would be interested in in that that’s of course anonymized and uh
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we will take this up uh later on also in the in the Q&A
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right and then over to some best practices and we also um yeah associate
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this to those different levels okay so what we doing here is we
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um if you are in a level one like in the bottom left so you you are doing some Venture client activities you’re not
20:18
calling them such maybe you doing it out of a purchasing department um for example what are the best practices to
20:25
get from level one to level three and and and also important to note here we
20:31
do not recommend to go to level two first um we have seen many cases where companies went from level one to level
20:37
three directly without going over over level two so some of the best practices
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we would uh uh we always structure the best practice around strategy structure and and process so you know obviously
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your strategy needs to be from the beginning let’s build a dedicated Venture client unit as a strategic
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vehicle that solves pressing problems for your company and even though that
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unit can be small and needs to grow organically that needs to be the first really that that that that needs to be
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the Strategic vision and we’ve seen that this works at big companies like a BMW
21:15
or Bosch or seens but it also works at very small companies um as we’re seeing for example in Spain with companies that
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have around 100 million in um in Venture client uh in in in in Revenue
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structure always important establish a clear set of roles and responsibilities so for example you know
21:36
defer head of venture client unit Define a venture client manager Define uh really use also this terminology to
21:42
Define your job positions in your structure and process apply and use a proven Venture
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client model when I did this way back when in 2014 15 at BMW there was nothing
21:54
correct basically I had to invent my something and then iterate especially with 27 Pilots we could iterate on the
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process uh with over 20 uh with over 20 companies and um and there is already
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some processes and models around it that have you know proof of working and um
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and and and and this is what we seeing as establishing as a best practice where you have a core process that combines
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startup intelligence finding out about startups the next you really having a a deep
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insight into what’s happening in the startup ecosystem then finding the right startups validating them through a pilot
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and then going into the adoption through a partnership um or an m&a transaction
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and that always has to be supported through a continuous evolving strategy continuous evolving structure you also
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need to work on your culture which is mainly driven by communication branding um promoting uh the reason why a venture
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client unit is there for the company and also to build on strong technology and
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data to run your Venture client operations all right then um coming from
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level two to three so meaning you have like a certain level of institutionalization um also in terms of
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like corporate venturing maybe you have like um Venture certain Venture client activities running under a certain
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umbrella and you can also boost that to what we call the level free meaning a
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dedicated Venture client unit with dedicated branding as grego said technology St of intelligence and to
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boost really the Strategic impact of um startups in your organization also here
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some best practices um that that evolve around uh leveraging from level two to
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level three so um boost yourself um to level three by not talking about um like
23:57
a certain startup partnering um activity instead talk about competitiveness
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because you will miss out on critical innovations that happen outside of your company and you need to have like a
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dedicated vehicle to leverage those startup Technologies Cutting Edge technologies that you not have inside uh
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of your company and this does not work via standardized partnering where you also uh need to yeah have some certain
24:26
relationship in place it’s really about solving pressing issues at your company
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also what’s necessary here is to build a strong network of venture managers
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inside of your company that means um we talk about always about a problem that a
24:43
startup solves at a company right so it’s not about being active mostly in the startup ecosystem scanning startups
24:50
everywhere around the world this can be done for example via um store up databases it’s about identifying those
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key um problems that have high strategic impact by cost savings or new Revenue
25:05
generation and then also apply a specific Venture client Venture client
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software as well as data um for managing and measuring and monitoring the
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Strategic impact of stups so we have seen that a lot of companies work for example with dedicated stup data basis
25:23
they conduct pilot projects but you need to have it all in one and also see how certain store UPS perform at your
25:30
company and make your Venture client unit really a key of startup competitiveness and also to to to make
25:38
them leverage those synergies across um different business units with
25:44
startups and lastly level three oh level three well once
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you unit it’s not like you build it and it’s done and it doesn’t evolve from
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here when I started the BMW startup barrage in 2015 we were two people today it’s over
26:05
20 we worked mainly for technology for the car today the BMW startup garage
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provides technology across all BMW from HR to it and obviously carent Mobility
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when I look at the first Venture client units dedicated established at at Bosch for example bsh startup kitchen was the
26:26
second then the was holim startup maker at holim in in in in Switzerland then
26:33
also open Bosch for the overal Bosch group all those dedicated Venture client units that
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are quite different today from where they were at the at the at the start so
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that department can evolve just like any Department in a corporate evolves um
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over time it becomes better it provides a higher impact so what you have to do
26:59
from what are some of the best practices what we see here so in terms of strategy um you start a venture client
27:07
unit focusing on this two or three areas that where startups can bring an
27:13
immediate um and uh impact but you want to evolve that fun evolve the um the
27:21
offering to include functions and even function that wouldn’t even pilot a startup but that need startup intellig
27:28
for example for decision making because you as a vental client unit you have a very strong privileged insight into the
27:35
startup ecosystem so this would be uh one way to Inc increase your impact is
27:41
do not focus just on providing technology to Ser several business units
27:47
um and piloting startups but you know go with your offering for example in startup intelligence do corporate
27:53
strategy um support m&a in in in in in filling up the dealbook
27:58
and that uh and that way you will have a significant impact in terms of structure what we’re seeing is that Venture client
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unit started the headquarter and then they expand across regions and subsidiaries and spe specifically in in
28:12
the in China in in in Asian countries uh and also in the United States so what we’re seeing here as an evolution is to
28:19
is to is to go from V Central Venture client unit to a central Venture client Excellence Center that then provides
28:27
really the tools and processes and and blueprints for the Venture client units
28:33
that then run across the world uh in subsidiaries with the same brand with a different brand but all based up on the
28:40
same you know Venture client model and and through that you have strong
28:45
synergies and that obviously will also boost your your strategic impact on on
28:51
the corporates and um and the last but not
28:56
least one back mhm so the on the process side what we
29:04
see initially is that the startup units Venture client units Focus specifically on the center part which is really the
29:10
core engine it’s it’s it’s driving Pilots it’s it’s finding problems
29:15
finding top startups and then bringing those into the business units and from
29:20
there on ignite the uh ignite the um um adoption what we see is an evolution of
29:26
venture client unit is to more and more in intelligence really become also the
29:31
the foresight Research Center and and on the adoption side also get stronger
29:37
involved into adoption for example when you roll out a technology on a global basis or when you decide to acquire a
29:44
startup because you want to be the sole user of startup
29:49
technology all right and then we have like um a lot of success cases already
29:54
um so that you can also look up in on YouTube for example this so Robotics and otch case with BMW so make sure to to
30:04
look them up accordingly I think we’re going to skip that for now and um with
30:09
that said um yeah um this was a glimpse into the insights and best practices of
30:15
the set of venture client report 2023 um feel free to reach out to us um
30:21
we are happy to help you in becoming a excellent Venture client as we we have
30:26
seen jumping from level one to level three um or even further from level three to three plus and we here for your
30:35
uh support and if you want to learn more about the report itself and a lot more
30:40
best practices a lot more insights um yeah feel free to scan this QR code
30:45
right here um Google the state of venture client uh report um that we that we launched in April 23 and yeah I’m
30:54
happy to answer now your questions and in the chat or if you want to unmute
31:00
yourself so feel free um to shoot us any question that you would like to I think
31:06
we have around like 10 minutes for that so um
31:18
yeah any questions from your side I’m trying to Al see the check chat here
31:26
okay so most of you you said uh that you are level three um companies with
31:34
52% then level two with 24% and level one with 12%
31:42
okay there’s a question Matos uh yeah one question that I have
31:49
is um I have worked in plenty of like big corporations that actually had
31:55
multiple Innovation units many of them working with with startups um how to
32:01
coordinate and create uh a coalition to actually drive this efforts in a
32:06
corporation that is so spread out and has so decentralized way of driving
32:16
Innovation so you were saying you have you you you’re you’re saying that
32:23
you’ve worked at cooperations with a central Innovation Department
32:28
decentralized so in in a big Corporation how can we pull a venture client unit
32:35
when you have decentralized units that are driving innovations that you you is this
32:41
something that you have faced before um yes well I I uh I initiated the BMW
32:49
startup garage out of BMW Innovation and BMW has also very let’s say many
32:54
Innovation teams and um um so the important thing is here to to
33:00
really get a strong sea level support at the headquarters and to get that person to
33:07
support a initial small centralized Venture client unit team that focuses
33:17
not just on Innovation but really on competitiveness so don’t make this at the subdepartment of innovation make it
33:25
an enabler of innovation but separate from Innovation and um and once you
33:31
establish that at the headquarters don’t establish it at a startup Hub if you’re company’s headquarters not at the Hub go
33:38
to the headquarters find the executive sponsor set up a small Venture client unit team Define a set of services for the
33:45
Innovation teams where you support them with finding sourcing evaluating
33:51
piloting startups but also start working for non- Innovation functions like um
33:57
manufactur ing Logistics it correct on on on and from here
34:03
on you grow it out of this Central initial Central um seed into um a global
34:10
Venture client
34:16
operation thank
34:22
you right any other questions from your side so thanks mattios
34:36
can also put it in the chat if you want to oh there’s a question yeah feel free to unmute
34:46
yourself um hi Matia so my name is Patricia and I used to work within like
34:51
Innovation organization at your main competitor in Germany for the last 5
34:56
years and now moved to Pharma company where I’m also like leading Innovation unit so as when Sebastian was answering
35:03
the question like I know how to centralize you thought this buying from C Level it’s important and that’s true
35:10
that my challenge in my previous jobs and the current job was that you know it’s not I mean the Innovation is not
35:16
being adopted by the sea level so sea level usually gives a mandate for this for this organization to exist but there
35:22
is very often lots of resistance and misunderstanding on the business side it’s actually you know them who need to
35:29
incorporate into their process or their product and very often it’s kind of
35:36
a pain in the back of the body uh that you know someone is coming with the
35:41
startup and asking them to do additional job because you know for them their power is actually they find the power
35:47
expressed by the number of people they’re leading and their budgets right so do you have any what are your based
35:55
on the experience which you have from from from uh BMW how what are the key success factor
36:01
to drive adoption of this startup within the business you made well the key thing is don’t talk
36:07
about startups talk about what problems can’t you solve by yourself and you go around the company
36:15
any unit whether it’s an R&D unit or what have you and just go to lunch with them and they will talk about they will
36:21
complain about all the big problems they’re having they will also talk about the vacation coming up in the next few
36:26
weeks but you know generally they will talk oh I can’t meet my goals and no we got to do this project or we got to
36:31
launch that product how do we do this how we do this feature how we do that so always start with a problem don’t start
36:38
don’t go around and be the sales guy of startups start with a problem and then you say what if I would find a
36:44
technology don’t even word use the word startups that can solve that because why
36:50
are you solving it yourself right you seem not to be able to you can solve it with by yourself you can solve it with I don’t know IBM Microsoft what have you
36:57
so how about we find some novel companies around there and you will see that there will open their eyes and will say hm yeah sure you know if you have a
37:04
solution please knock at my door so that’s that’s really the critical thing
37:10
and that’s also the mindset go out not promoting
37:15
startups and as you said correctly um sea levels do not use startup technology
37:21
um but you still need C Level support to establish the unit and to give the unit an organization
37:28
standing and uh and and and brand really and uh so it’s both a top down and a
37:33
bottom up process to get your to get uh to get that going uh you need you need
37:39
both but in in in if you don’t have you know the sea level then you know start with with the bottom and then I was
37:46
wondering who’s our main competitor company from the south of
37:53
stutgart from the from the south of stutgart
37:59
mercedesbenz oh okay well um well we are 27 Pilots now we’re not vmw correct we
38:07
we work for BMW we work for other Automotive uh companies too and um and
38:13
um and uh we actually also worked with uh with with with Philip um some some
38:20
some time ago when he was still at at uh at Mercedes and um so
38:28
but yeah thanks thanks for your question thank you and then we have um Mark you have a question right yes sure so thanks
38:36
both for the for the interesting uh content I have a question you did not um
38:42
differentiate between the hardware and the software approach is there a big difference of um
38:49
introducing um startups which are only software based in the in your uh
38:55
portfolio not at that level Mark hello to
39:00
Barcelona what’s the temperature today quite hot I must say 33 in
39:06
Barcelona but in the interior or in the South even even higher for sure well yes um on on on the on on this
39:13
high level which we talked today um the basic framework is the same for hard and software and generally Hardware comes
39:20
with software um so it’s um definitely when you go into the depth of the very
39:27
process steps when you go to defining the pilot project then there is definitely a a a a strong difference
39:34
between hardware and software um you know the pilot project will likely be longer the cost of the pilot project
39:40
will likely be higher the um you know the the organizational setting where you have to you know validate the hardware
39:47
will will be more complex um so so yes and um there is a difference but not on
39:55
that high level that we talked about out uh
40:01
today thanks right um okay there’s a question
40:07
in the chat how do you see the differences of this model to corporate accelerators and corporate
40:14
incubators well an incubator is generally inside out it’s about I create a company and then I you
40:21
know either establish a separate company from the main company or I make it a product within the company so that’s an
40:28
incubator generally but there also obviously many def definitions but what we see mostly incubator is about
40:33
creating companies within a company and um and you should do that if there is no
40:40
startup who can do this better and you should definitely use an incubator when um um when when when you see that you
40:48
know startups are not active in in that realm and you should potentially also use startups as part of that incubation
40:55
correct because most of the things you will build in incubator will not function without startup technology
41:00
accelerators are generally um units that help startups become um um valuable uh
41:08
with with mentoring and so forth a venture client does not help startups a venture client unit seeks the help of
41:16
startups The Venture client unit provides a direct purchase order and and
41:22
provides a direct technology transfer into the business unit the accelerator does do that there is no purchase order
41:28
there is an invitation to the accelerator where the startup spends a few months preparing for a pitch session
41:35
and the demo day and after that maybe they engage in a venture client relationship so it’s um it’s it’s it’s a
41:43
complete difference and I hope with those through few words I I could um explain a little bit the
41:50
difference all right and then um yeah as a last question I think um so who is
41:56
usually usually paying for Pilots The Venture client unit or the business units in the long term it’s the business
42:04
unit in the short term it can be the Venture client unit but at the long term it should be the business unit we have
42:10
seen um Venture client units where from the very beginning from the very first day the business unit paid for the pilot
42:17
and the Venture client unit provided the structural support and the budget to finance that structural support so all
42:23
the activities that you need to do in order to write the business case around the problem finding the startups evaluating piloting them and so forth
42:29
but the payment to the startup was done is done by the business units and we see
42:35
that mature Venture client units this is generally uh what happens um because a
42:42
venture client has a need they have a strong need and they certainly have an incentive to pay for that and it’s also
42:50
a good sign of commitment and uh and urgency that is uh
42:55
is very important in the process right uh thank you very much for all of
43:02
your question uh questions I think we are pretty much in time so um I want to
43:08
end with this slide again so that you can still scan the QR code or scan the email address so you can reach out to us
43:15
and uh yeah thank you very much for your um attention thank you everyone for joining um enjoy your lunch if you’re in
43:23
Europe and yeah hope to talk soon thank thank you also from my side and um
43:30
looking forward to lots of fun activities with um the global Venture client
43:36
Community all right thanks everyone bye-bye