Corportate venturing

Problem & Solution

 

Start Ups

  • No scale resources
  • Require huge resources
  • Have developed the next "big thing"
  • Have Talent

Corporate

  • Have global scale
  • Unused assets and resources
  • Dificulty finding new business model and identifying oportunities
  • Need talented entrepreneurs

Disruption is happening

Competition within every industry is intensifying. Gone are the days when your only competitors are other large companies selling legacy products. Now, established corporations are continuously getting challenged and even disrupted by more agile startups.

Corporations are not only getting challenged by technological innovations, but also by the efficiency at which smaller companies can iterate products and processes and therefore be more customer-centric. Growth acceleration through technology players is nowadays a must.

Nurturing top talent is also getting harder, as exceptional people are drawn to startups, with the promise of broad responsibilities, a fast pace, a lucrative stake in success, and the ability to shape the future.

Our firm has studied these challenges for years. More are coming — and we help corporate clients every day to maintain their relevancy in the constant state of change.

START UP

Many startups do not reach scale because they might not have the skills, the funding, or access to the right distribution network. We strongly believe that innovation is a question of forming the right alliances and reaching out to new partners

Since its inception, The Net Street applies the successful entrepreneurial experience of its founders, covering all the phases of the startup growth from the digital business model to the sale of the startup to a corporation. The Net Street provides active business acceleration through funding or intense project management involvement.

CORPORATE

Corporations need innovation to sustain growth and profit. However, these companies tend to have problems coming up with such radical innovation internally and they don’t have the network to find the very early-stage companies that could provide this. The big companies have all the assets and skills to scale things, but first, they need to find them. We help your company with finding the right startup, managing the deal flow of projects and creating and sourcing innovation from the digital concept to corporate finance advising.

Why and how corporates should work with startups

More and more, large, successful companies are facing intense pressure from newer, smaller, faster-moving companies that threaten to disrupt their industries. Speed is becoming more important than size, and the basis of competition is shifting from scale to speed.

Startups are faster through a four-step learning loop consisting of scan, plan, do, and act.

Some CEOs are adopting agile ways of working to set priorities, allocate resources, and empower teams to make decisions more quickly, minimizing hier­archy and unleashing the creativity and judgment of the people closest to the work and to customers.

Too often, unfortunately, companies grant teams autonomy before ensuring that they have a clear, shared understanding of the organization’s strategic direction.

The new technology-based business model positioning appears to be the right option for a corporate to reinvent itself.

Open innovation from Henry Chesbrough first approach in 2003 has suffered many incremental pivots from internal development of technology to Corporate Venturing Capital investments or M&A. Our approach from multiple failed experiences has led us to use a combined Venture Client approach with a decided M&A strategy successfully.

Leading companies are applying these best practices nowadays:

  • Define the scouting fields. Search fields ensure that the prospective companies are relevant to the business, which keeps management engaged.
  • Set a clear objective. As a starting point a company must decide the objective of its Corporate venturing unit to be financial or strategic. Once this decision is taken it makes easier setting up the optimal organization structure and people.
 
Corporate Venturing
  • Select a leader from outside. Look for someone connected to the right networks with the best technical expertise.
  • Evolve quickly the traditional annual strategic planning process to avoid an outdated poor fit—that applies particularly for companies competing in rapidly changing markets, where a tempo advantage is most decisive. For fast execution, Lean strategy is also necessary. In a tempo-driven organization, everyone’s attention is focused on the strategic objective and how to achieve it more quickly.
  • Create a Corporate Venturing unit that should be working independently from the company´s daily activities to provide space enough for innovative thinking. However, the team should be able to interact with the organization easily. It is compulsory that the corporate venturing occurs inside the corporate framework to avoid be perceived as a pet project that competes with R&D instead of complementing it.
  • Set up the procedures for a lean and agile strategic planning and governance, the business unit cannot operate with the usual deadlines. Good opportunities do not wait.
  • Corporate venturing can address the company concerns in two ways. First, the Corporate Venturing can use a venture client approach to scale their business and make wider the product or service offering to acquire the company in a scaled phase.
  • Second, the Corporate Venturing unit can improve the way they identify more immediate acquisition targets for the corporate.
 
Corporate Venturing

The Net street is a growth strategy consulting boutique that helps major TMT, FMCG, Banks, Insurance carriers, Retail and other Mass Market companies to ACCELERATE INORGANIC BUSINESS GROWTH through STARTUP DRIVEN INNOVATION of their Products, Brands, Customer Experiences, Go-to-Market and Business Models.