Corporate Venturing | Hero

How to Get Corporate Venturing Right

Corporate venturing is a crucial element of an organization’s growth and digital transformation agendas, but just as each company’s strategy is unique, its corporate venturing approach must be as well. BCG works with companies to define and implement the right strategy and structure.

Corporate venturing plays a critical role in accelerating innovation strategy and helping an organization fulfill its growth ambitions. As industry boundaries blur and competitive clock speeds increase, companies—incumbents and newcomers alike—are both emulating and partnering with startups to turbocharge their innovation engines. For established companies, the advantages of corporate venturing include faster results, exposure to new ways of working, access to novel ideas, technologies, and business models—and enhanced competitive advantage in the next game.

BCG’s Corporate Venturing Consulting Services

Corporate venturing is not one-size-fits-all. As with any powerful tool, it’s important to know how and when to use it. As part of crafting a corporate venturing strategy, BCG works closely with clients to help lay the groundwork by considering several important questions:

  • What role should corporate venturing play in realizing the overall growth ambition?
  • How to determine the mandate for corporate venturing within the innovation and digital transformation agenda, and define a corporate venturing strategy?
  • Which corporate venturing vehicles (incubators, accelerators, innovation labs, digital labs, and corporate venture capital units) to select?
  • How to determine and allocate the necessary capital across innovation vehicles to bring the strategy to life?
  • How best to orchestrate the efforts and roles of different innovation vehicles—with one another and with the research and development and M&A activities of the sponsoring corporation?
  • How to define the strategy and objectives—for example, accessing new technologies or insulating noncore moves from the core—for each corporate venturing vehicle?
  • How to set up and run a vehicle (to create deal flow and identify first potential targets)?
  • How to scale—and/or integrate—corporate venturing activities to create real impact?

Armed with the answers, it becomes possible to shape a winning strategy for corporate venturing.

We support clients across the full corporate venturing spectrum—not just defining the mandate, setting the strategy, and identifying the most attractive investment areas, but all the way through to vehicle setup and refinement, ramping up, and running operations (such as deal scouting and execution), and scaling activities (like expanding growth capital). Our deep understanding of the trends driving disruption across and within industries—combined with our proven corporate venturing toolkit and knowledge base honed over hundreds of engagements, as well as our ability to tap into a unique network of startups, investors, and corporates—makes us an ideal partner to help clients define and implement a winning corporate venturing strategy.

We bring best-in-class consulting expertise to bear on every engagement and complement it with critical capabilities from BCG’s broader innovation ecosystem:

BCG Digital Ventures

Our specialty business BCG Digital Ventures, an experienced venture builder, can help accelerate innovation by creating and scaling innovative ventures—and helping clients set up or strengthen venture-building operations.

B Capital

BCG has partnered with B Capital Group to enable client investment in a diversified portfolio of innovative startups, direct investment opportunities, and startup ecosystem immersion experiences, and to offer perspectives on scaling venture capital operations.

Our Work with Clients on Corporate Venture Capital

  • Defining the mandate for corporate venturing for a global retailer as a complement to its innovation strategy and digital transformation agenda
  • Setting up a corporate venture capital unit for a global food company
  • Reviewing and refining a global retailer’s corporate venture capital and incubator strategies
  • Defining an ecosystem development strategy and resource requirements for an economic free zone
  • Designing a multi-investor venture capital fund for a client in the energy sector
  • Developing an innovation accelerator and investment platform for a global fashion player
  • Running ideation sprints and then incubating a startup for a global aerospace company

Meet Our Corporate Venturing Consultants

Learn More About Corporate Venturing

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How to Get Corporate Venturing Right