9 best practices in venture clienting.
In a world where business evolution is relentless, innovation isn't optional-it's survival. Enter venture clienting: a game-changing strategy where corporations become early customers of startups, not investors. This approach unlocks access to cutting-edge technologies and fresh solutions, all while minimizing risk and accelerating progress.
Understanding venture clienting
Venture clienting is a strategic approach where corporations engage startups as early customers rather than investors. Corporations directly leverage startup innovations in real-world applications, with reduced financial risk and faster implementation than traditional venture capital. The benefits: accelerated innovation cycles, reduced time-to-market, enhanced competitive positioning and tailored solutions. Industry leaders like BMW, B. Braun and Vattenfall have proven the model's effectiveness.
Use venture clienting strategically and simplify procurement
Develop a clear strategy for your Venture Client Unit with objectives that align with your organization's goals. A Venture Client Unit can exist alongside traditional procurement, but you must remove the legal and procurement obstacles that cause startups and scale-ups to drop out early: standardized contracts and fast-track approval procedures make the difference.
Proactively seek pain points and ensure clear branding
Where traditional corporate venture capital invests first and convinces business owners later, venture clienting actively looks for problems across your company and value chain, then matches startup solutions to them, an approach five times faster and three times cheaper than the CVC route. A clear brand, supported by a website, targeted campaigns and knowledge centers, helps business owners and startups find their way to you.
Support startups and implement rapidly
Provide extensive support to startup partners: network access, mentorship and business development resources. BMW offers startups direct collaboration with its engineers and managers, and has reduced the time for a startup to sell its product to BMW from over two years to just a few months. Establish streamlined pathways for pilot projects to transition into full-scale implementations, with clear criteria and fast-track procedures.
Mitigate risk, build partnerships, cultivate culture
Engaging startups as clients rather than investments mitigates financial risk through low-cost phased pilots, an approach adopted as a new industry standard by companies like Bosch and Siemens. Formalize relationships through supplier numbers and purchase orders to turn one-time engagements into long-term collaborations. And let exposure to startup thinking foster an entrepreneurial culture internally, as B. Braun's transition to a more data-centric organization shows.
Ideas intoaction.
Explore the possibilities with Patrick van der Pijl and the BMI team. Every big shift starts with a conversation.