Seven ‘corporate venturing’ strategies to foster innovation (and create an environment for long-term growth)

Erik Vermeulen, Mark Fenwick

Research output: Working paperDiscussion paperOther research output

Abstract

Seven “Corporate Venturing” Strategies to Foster Innovation tackles the question: What should companies do to accelerate innovation and remain relevant? Or, stated differently: What should companies do to avoid being disrupted by more agile and innovative startups? One answer is corporate venturing.

Corporate venturing is often understood as a corporation making an investment in external startups either directly (off the balance sheet through a corporate venturing unit) or indirectly (through a venture capital fund) for strategic and/or financial gain.

This kind of definition is limited, at least as a description of current “best practice” in corporate venturing. Based on the findings of an empirical review of the world’s most innovative companies’ venturing practices, we identified various other corporate venturing strategies that have been adopted. These strategies transform firms/corporations into open and inclusive “ecosystems” built, in part, around new forms of relationship with entrepreneurs, founders and startups. By “organizing-for-innovation” in this way, large firms give themselves the best opportunity of remaining relevant over the long-term and offer startups the best opportunity of successfully scaling.
Original languageEnglish
Number of pages29
Publication statusPublished - 14 Aug 2016

Publication series

NameTILEC Discussion Paper
Volume2016-023

Fingerprint

Long-term growth
Innovation
Corporate venturing
Start-ups
Entrepreneurs
Venture capital
Best practice
Balance sheet
Organizing
Large firms
Scaling
Ecosystem

Keywords

  • corporate finance
  • corporate venturing
  • corporate venture capital
  • ecosystems
  • entrepreneurship
  • innovation
  • networks
  • open innovation
  • organizations
  • startups
  • talent
  • theory of the firm
  • venture capital

Cite this

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Seven ‘corporate venturing’ strategies to foster innovation (and create an environment for long-term growth). / Vermeulen, Erik; Fenwick, Mark.

2016. (TILEC Discussion Paper; Vol. 2016-023).

Research output: Working paperDiscussion paperOther research output

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