Products lifecycle is shortening, and consumers are adopting disruptive technologies and new business models faster than ever. Disruption is coming from everywhere and corporations feel a strong pressure for radical innovation that often cannot be fulfilled from their own internal innovation units or R&D departments.
Within this competitive environment, corporations pursuing radical innovation cannot ignore start-ups as a source of opportunities to disrupt in their markets.
Corporate Venture Capital has been the traditional way to approach this challenge. The investment in promising start ups may bring significant financial returns, insights, and influence in emerging technologies or business models. However, due to their significant funding needs, only a limited number of start-ups can be addressed. Likewise, the complexity involved in the process of investing in a start-up extends the time and resources required per operation.
Nevertheless, corporations are developing new models of collaboration with start-ups focused in revenue generation through the co-development of products, services or markets. This approach does not need to involve equity, increases the number of start-ups that can be addressed, and speeds up the process of capturing innovation. It also allows building of a constructive and positive relationship with start-ups ecosystem.
Speaker: Marc Milian, Director of the Corporate Venturing practice in ESADECREAPOLIS. He has launched various acceleration programs of Startups.