How to tell if corporate venture building is for you

May 18, 2022

So you want to innovate.

Let’s start off with a basic question: What is the best-fitting innovation formula for your company?

Corporate Venture Building and other initiatives exist to facilitate innovation within a company, but the term has almost lost its meaning. Innovation is repeated ad nauseam nowadays (not statistically proven but an experience-based fact), a phenomenon akin to what occurred with the word sustainability.

Innovation has, somehow, become an umbrella term for all initiatives outside the business-as-usual scope.

It is, however, much more powerful and should not be automatically attributed to non-core-related initiatives. In my experience, besides introducing a new (to the company) solution, innovation always requires the element of impact, be it financial, social, or environmental, among others.

There are several innovation models corporations can adopt. They can be divided into two basic initiatives:

1. Initiatives focused on business creation.

Venture Building, Intrapreneurship, Venture Client, Acceleration Programs, and the like. The goal is to develop ideas into real, operative business models.

2. Initiatives oriented toward financial investment. 

Venture Capital or M&As. Their target is to directly improve financial results.

Here are some examples of both initiatives and their potential impact on organizations:

  • We developed a tech solution that digitizes and simplifies a tedious strategic process.” Aka Operational Efficiency.

  • We implemented a new digital customer experience that helps us reach younger generations.” Aka New Target Markets.

  • By launching this new product, we are solving a real unsatisfied need of our customers.” Aka New Product Development.

  • We are investing in a startup that will disrupt our sector. We expect it will scale up so, afterward, we will perform an exit.” Aka Profitability.

  • We created a spin-off company that has little to do with our core business, but we believe it will succeed and transform into a source of additional revenue.” Aka Diversification.

At Byld, we develop new business models with corporations, hence why we fit into the framework of Venture Building, specifically Corporate Venture Building. We aim to positively impact gross revenue or net income (or both), which is why, in my opinion, innovation stands for more than a cost line in the budget. It is a real investment, and it ensures a higher ROI in the future.

Why are you interested in Venture Building?

 

What I enjoy about Venture Building is that it entails creating a real, valuable, and innovative business model with the goal of launching and making it fully operational and scalable moving forward. These are beautiful words, but, trust me, they are real.

Far from underestimating other innovation formulas, I believe that Venture Building is one of the most powerful tools because it takes us from opportunity identification to creating a new company. All of this while ensuring it has an ad-hoc team and proper funding. This is how you embark on the adventure of achieving product-market fit.

You are in full control of the whole process and, therefore, fully responsible for the result.

Of course, not every corporation is ready to develop a Venture Building initiative. This is why it is vital to gauge the level and culture of innovation within before deciding whether it is the best formula for you.

If you are just looking for a list of disruptive ideas or branding enhancement, Venture Building is not for you.

Venture Building isn't for everyone

Venture Building isn’t for everyone.

 

Is Venture Building something you should conduct on your own?

 

Corporations are proficient at their core businesses, but there is a reason management consulting and business building (I have work experience in both) exist and, time and again, succeed.

My mom would always ask me, “What do you really do? I will never understand why companies don’t do it on their own. Don’t they already have workers?”.

Industry and market know-how are vital to guarantee the success of a project. Other key elements include, for example, an established customer pool, previously developed tech solutions, a specialized workforce, etc.

These elements are essential when deploying a new business and achieving the right product-market fit. They strengthen synergy with the corporation.

Partner up with Venture Building experts

Partner up with Venture Building experts.

The truth is, most of the time, corporations don’t have the resources in-house to facilitate transitioning from an idea to a real solution, validate said solution in the market, and prepare and kick off a strong launch.

In this respect, corporations usually lack three vital elements that prevent them from succeeding in these ventures:

  1. Focus: Corporations are mainly focused on day-to-day operations and delivering their services or products. Innovation is not a part of their daily activities.

  2. Talent: Workers are highly specialized with vast industry knowledge, but are not capable of facing strategic “big picture” issues.

  3. Business-creation knowledge: Corporations need to learn the methodologies that transform inspirational business concepts into grounded business models that work at both operational and financial levels.

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To conclude, I strongly recommend evaluating the following two main variables when gauging whether to partner up with a Corporate Venture Builder like Byld:

Reduced (and shared) risk.

We are your partners, meaning we also share risk by investing and believing in the opportunity. Therefore, we work diligently to minimize risks.

How do we achieve this? Simple⁠⁠—by validating! That is our secret sauce Thorough experimentation combined with business creation comprises our primary tool to launch new businesses with the highest possible guarantee of success.

Time to market.

The time is now. Partnering with a business creation expert facilitates moving from idea to real business model in just a few months. Check out our way of achieving goals in this section!

Venture Building to the rescue

We have your back.

If you are wondering which path to take, don’t hesitate to reach out to us!

Stay tuned, we'll tell you everything in a Blynk!