Definition: Venture Clienting involves established corporations acting as clients to startups, purchasing their products and services for strategic benefits. Unlike Corporate Venture Capital (CVC) that focuses on financial investment, Venture Clienting prioritizes practical application and real-world testing.
Benefits for Corporations:
Early access to innovation: Experiment with cutting-edge solutions without high financial risk.
Faster innovation cycles: Get solutions quicker than internal development, adapting to changing markets.
Reduced risk: Test technology on a smaller scale before potential integration or acquisition.
Valuable feedback: Gain insights from real-world use and provide feedback to startups.
Benefits for Startups:
Early revenue and validation: Secure valuable early customers and validate their product/service.
Market access and expertise: Leverage the corporation's reach and knowledge to navigate markets.
Feedback and development support: Gain valuable insights and potential resources for development.
Potential for larger partnerships: Successful engagements can lead to broader collaborations or acquisitions.
Key Differences from CVC:
Focus: Venture Clienting prioritizes real-world use and strategic value, while CVC emphasizes financial returns.
Engagement: Clienting involves buying and using solutions, while CVC focuses on equity investment.
Risk: Clienting generally has lower financial risk but may limit potential returns compared to CVC.
Examples of Venture Clienting Programs:
BMW Startup Garage
BSH Hausgeräte Startup Kitchen
Holcim MAQER
Bosch Group Open Bosch
LG Electronics LG Future Home
Additional Resources:
Comments