At UK-based services company Hays, Brian Pietras has had the unique opportunity to play a critical role in getting a corporate venturing unit off the ground. Joining in March 2014 to kick start the unit, Pietras came in with a decade of experience in business strategy and four years in corporate venturing working for Centrica and Unilever Ventures.
Born in the US mid-west and now operating out of the UK, the Richmond and London Business School graduate gained a passion for corporate venturing after being involved with two startups. Thompson Reuters and SAP bought these startups, Global Securities Information and Infohrm Group – which later became SuccessFactors – respectively.
One of the ways Pietras has made an impact at Hays is by exposing the company to early-stage technologies through the venture model. This area was previously glossed over by the firm. This is reinforced by the investment strategy of Hays to focus purely on series A, keeping its eyes firmly on early-stage startups.
Hays has made one commitment to an early-stage venture capital fund, Seedcamp Fund III, where Pietras is a mentor. It has also joined the series A round for Onfido.
One of the biggest challenges Pietras has faced in bringing the venture model to Hays is melding it with an already widely successful business. “The challenge is working with the business while still being able to focus on new market models or technologies that are going to have a disruptive effect, although the business may see it a different way. It’s the classic innovator’s dilemma,” said Pietras.
“Having seen first-hand experience of corporate venturing done poorly, I can see why the industry has suffered reputational damage over the years,” he added. “But if you can get the formula right, it is a model that can be embraced as a force to keep industries successful and relevant.”
Pietras said corporate venturing was a lot tougher than being at an independent VC – he had been an associate at Kennet Partners and consultant to Index Ventures on its MetaPack deal. He said: “Not only do you need to find great financial deals, but you have to link them back to the organisation to bring strategic value. That’s your mandate.”
As a result, he said there should be a higher bar for becoming a corporate venturer. “You should not be bringing in marketing managers, putting a VC hat on them, and giving them a fund of $50m and sending them to Silicon Valley to figure it out. It needs to be seen in the right light, and with the right team. It does not happen overnight, and it is not something that can be done without thinking it through.”