Benefits of corporate venture building being industry agnostic. 👾
Jun 20, 2022
Corporate Venture Building (CVB) is a concept that started generating interest among corporates in the last few years. They got caught by the idea of innovating from a safer point of view, with a challenge found inside the company, and in an area they had expertise, so they could use all their know-how.
Why CVB is industry agnostic? A hybrid approach using Artificial Intelligence.
In order to elaborate this article, I visited OpenAI, a tool that allows you to interact with Artificial Intelligence, to elaborate arguments both in favor and against CVB being industry agnostic and used them as reference to support the arguments that I am going to present below.
According to Artificial Intelligence (AI), CVB is a suitable industry agnostic methodology for safer corporate innovation. It understands that certain industries are prone to be more traditional and might reject the approach. Our experience building ventures in Proptech and Mobility, or designing business concepts in construction, heavy industries and pharma, shows that certain industries might be slower to develop, but these are bound to experience a rapid catch up with market demand, and it will only be pushed through ‘safe innovation’ or CVB.
I define it as ‘safe innovation’ because Byld has developed a methodology for entrepreneurship that makes the process safer through creating what the client’s need. There are no industries with opinion-less clients, and their viewpoints are the seed for opportunities that can steer an industry’s purpose. Ignoring them is suicidal, and among some other key areas to be studied, we formulated a process that reduces the ‘startup’s failure ratio’: 9 of 10 startups do not fail anymore.
In order to expand on the concepts already discussed, I will rely on OpenAI as I pointed out before, as a source of arguments in favor of CVB and I will further expand on the topics outlined.
Expanding arguments portrayed by AI
DaVinci-002 arguments in favor of CVB.
Mainly focus on opening new markets and revenue streams, stimulating strategic partnerships, accelerating product development and talent retention. These are more straightforward reasons why CVB is positive regardless of the industry we are working in, but we are yet to answer how this methodology is agnostic.
Corporates are constrained by the hierarchy implanted for decision-making.
We can see that it is also limited by the difficulty of generating innovation from the inside. In addition, our brains are biologically formed to preserve energy and thinking outside the box imagining a future where the current revenue stream might tremble is an effort we subconsciously avoid. For traditional industries with conservative boards, innovation might have been sluggish due to the lack of necessity to change, but with the current post-pandemic, sustainability focused, web3-influenced, digital scenario, a conservative approach might be deadly in the long term.
Companies do not perish as Hollywood taught us.
It might take decades and everything starts with decreasing profits, next to the inability to capture first class talent, and overall translates into a slow decline of the market share. However, we are not there yet, and all industries, conservative or not, have amazing talent with proficient know-how that, mixed with a methodology for innovation and a dedicated team, can come up with product/market fit ideas.
The ideas explained above will need funding, networks, market capillarity, talent, guidance, etc. and these are all perks that corporations can provide due to their size and experience, as well as rely on the flexibility, agility and experience of corporate venture builders to generate synergies between them that launch the venture idea to the next level.
All in all, regardless of the industry a corporation belongs to, and the necessity to adapt to the massive change our world is undergoing, the need for a way to leverage corporate’s industrial know-how together with a methodology for innovation has emerged. For instance, nowadays, everyone is looking to comprehend web3, finding ways to adapt their value proposition to be sustainable, or applying circularity to the waste they produce in order to generate value.
Gladly, at Byld, we are ready to take on these challenges and build the next generation of startups that reshape the world.