Global Corporate Venturing surveyed the heads of corporate venturing units round the world as well as others in the ecosystem to ask what was the most important event or trend in 2013. Next month we will reveal their answers on the outlook for 2014 – email your thoughts to tlewis@ globalcorporateventuring.com
Respondents seemed generally enthused by the pace of technological change and the way that technology is rapidly changing the markets in which their parents operate. There is also genuine excitement about the exit pipe’s strength, especially in sectors where in previous years returns have been hit by the lack of exits, such as health- care and clean technology.
As a counter to this, there appears to be genuine concern about how quickly valuations are increasing.
The excitement about software’s advance stretched far beyond pure technology companies, with respondents from consumer goods, oil and gas, and healthcare businesses all commenting on how digital is the big trend.
There is still some concern about the weakness of the wider venture sector, even though many are encouraged by the strength of growth in corporate venturing over the past year.
What was the most important trend in 2013?
Girish Nadkarni, ABB Technology Ventures: “The pull-back from capital-intensive clean-tech products.”
Jim Lussier, Dell Ventures: “Continued entrepreneurial and investor interest in enterprise start-ups.”
Olivier Garel, of Unilever Ventures: “Digital is now relevant on any dimension of our business and among the most relevant areas for our corporate.”
Detlef Pohl, Siemens Venture Capital: “Apps are entering the corporate IT environment.”
Geert van de Wouw, Shell Technology Ventures: “VCs struggle to raise new funds for investment in energy and they are moving later stage, leaving a funding gap for early-stage energy companies.”
Peter Cowley, Martlet: “The spread of reducing capital requirements into non- software tech start-ups.”
François Badoual, Total Energy Ventures: “Big data and internet of things.”
Davorin Kuchan, TI Ventures: “Internet of things, connected devices, smart sensors which translates into new usage models, more data and opportu- nity to change use behaviours.”
Ignaas Caryn, KLM: “Potential impact of, and power associated with, big data becoming clear.”
Rene Savelsberg, Chrysalix Set: “Stabilising performance of start-up companies.”
Adrien Henry, Blue Orange: “Uncertainty and changes for energy prices (gas).”
Mark Read, WPP Digital: “Mobile.”
Akira Kirton, BP Ventures: “Digital.”
Pieter Wolters, DSM Venturing: “Many (re)new(ed) corporate venture initiatives. Only the value-creating VCs remained in the game. IPO window opened for a few sectors and mainly in the US.”
Albert Fischer, Yellow&Blue Invest- ment Management: “That the energy utilities are under severe financial pressure because of their reduced profitability.”
Jens Eckstein, SR One: “IPO market for biotech”.
William Taranto, Merck Global Health Innovation Fund: “More and more venture capital firms moving into healthcare services and healthcare IT.”
Issam Dairanieh, BP: “Reopening of the IPO window.”
Brian Kolonick, Cleveland Clinic Innovations: “Healthcare information technology – especially as it relates to patient-centred care, be it in the clinical setting or at home,”
Fabienne Herlaut. Ecomobilité Ventures: “Increasing investment from corporate ventures.”
Alex Steel, Syngenta Ventures: “Growth in the agricultural biologicals sector.”
Kay Enjoji, TEL Venture Capital: “Recovering semiconductor industry.”
Graeme Martin, Takeda Ventures: “Increasing outreach by pharma into academia. This is not the old-style, arm’s-length relationship, but a closer more symbiotic one where the output is expected to be expedited validation of true innovation, and earlier support and positioning for development and commercialisation.”
Andrew Gaule, Corven Networks: “Corporate venturing units becoming more strategic, which actually means they are becoming tactical for business units.”
What is keeping you awake at night?
Girish Nadkarni, ABB Technology Ventures: “Market and adoption risk.”
Jim Lussier, Dell Ventures: “Valuations.”
Olivier Garel, of Unilever Ventures: “Getting the best possible investment team.”
Fred Brothers, FIS: “Valuations are getting silly again, especially in the [Silicon] Valley. Some VCs tell me they have not made a new investment in the Valley in 18-24 months, and they are looking in more non-traditional geographies for new opportunities.”
Shin Nagakura, Transcosmos Investments: “E-commerce growing in Asian emerging markets. Global brands
Detlef Pohl, SVC: “Interesting new ideas.”
Akira Kirton, BP Ventures: “Exits.”
Geert van der Wouw, Shell Technology Ventures:“Creating sufficient deployment opportunities for the port- folio companies we invest in. Ensure we play our role as a strategic partner and help the entrepreneur to become successful.”
Rene Savelsberg, Chrysalix Set: “Fundraising.”
Adrien Henry, Blue Orange: “The best ways to support development of portfolio companies solutions and go-to-market.”
Mark Read, WPP Digital: “Practicalities of data and integrating across the enterprise.”
Pieter Wolters, DSM Venturing: “Get- ting a lot done with a small team.”
Brian Kolonick, Cleveland Clinic Innovations: “Securing sustainable early-stage product development funding.”
Fabienne Herlaut, Ecomobilite: “Founders not realising they are fantastic founders but lousy managers.”
Alex Steel, Syngenta Ventures: “Limited number of investors with capital to invest makes syndication and fol- low-on investments difficult.”
Graeme Martin, Takeda Ventures: “Too many opportunities, not enough cash.”
Fred Brothers, FIS: “Because of the lofty valuations – some without apparent justification – whether we are in another bubble.”
Shin Nagakura, Tranacosmos Investments: “Jet lag due to 200,000 miles of travels in a different time zone.”
Peter Cowley, Martlet: “Not enough hours in the week to source, sift, invest and support all the great deals on my radar. Does not keep me awake, but shortens the number of hours in bed.”
François Badoual, Total Energy Ventures: “Health, safety and environment issues and the connected world.”
Davorin Kuchan, TI Ventures: “The trend of diminished start-ups for the hardware and semiconductor sectors.”
Ignaas Caryn, KLM: “How to secure sustainable development for the planet.”
Albert Fischer, Yellow&Blue Investment Management: “The severe lack of venture capital in Europe. Latest num- bers indicate that are approximately 40 VC firms actively investing throughout Europe, down from 400 in the year 2000.”
Jens Eckstein, SR One: “Bandwidth and human resources for incubating companies.”
William Taranto, Merck Global Health Innovation Fund: “The increase in valuations for healthcare data companies and will the bubble burst?”