Corporate venturing has transformed parent companies in 77% of cases, research has found, in a strong endorsement of the corporate venturing model.
The research titled The State of Corporate Venturing, which is based on a study of 48 active Fortune Global 2000 companies, came as part of a wide ranging overview by the Corporate Venturing Research Initiative at Switzerland-based business school ETH Zurich in collaboration with US-based consultancy firm Bain & Company. The study used data from Global Corporate Venturing, as well as Dow Jones VentureSource and industry bodies, the National Venture Capital Association and the European Venture Capital and Private Equity Association.
The authors said in the study: “Throughout our research, we have observed renewed interest in the venture space at the corporate level. Approaches and models may vary, as do the reasons for embarking on ventures in the fi rst place. But where corporations want to differentiate their strategic investments in innovation, they increasingly view corporate venturing as key components of their innovation portfolios.”
The research by ETH Zurich’s Boris Battistini, Fredrik Hacklin, and Pius Baschera also found 56% of units focused on adjacent business areas, while only 17% focus on white space opportunities outside their core business.
The study also sheds light on the performance strategies of units. Financial returns were regarded as important by 75% of respondents, while 63% used corporate venturing for market intelligence. The study added a majority of respondents were satisfied with their units’ performance.