On this episode of the Scouting For Growth podcast, Sabine VdL talks to Gregor Gimmy, founder of 27pilots, a company dedicated to helping companies build and scale Venture Client units and allows them to benefit from startup innovations faster at large scale and significantly lower cost and risk than traditional corporate venturing methods.
On this episode we will explore how this Venture Client model is shaping corporate innovation, the strategic benefits it offers, and how companies can adopt this game-changing approach to stay ahead in a competitive world.
KEY TAKEAWAYS
When I joined BMW in 2012 I was surprised to find out the small number of startups that it was leveraging to improve its technology landscape across its value chain. I told them that CVCs were investing in 2.8 startups per year. This is not nearly the number needed to solve all the technology challenges that we have, we need more like 100. My initial idea was not to invent a new model but to improve the current one.
I was told that if they invested in 50 startups per year they would have around 250 startups in 5 years whose equity state we would have to manage, which is impossible. I concluded that VC isn’t scalable, but it didn’t solve the problem BMW had either, which was accessing, adopting, and transferring cutting edge technology fast because it’s about investment not technology transfer. These are two totally different business processes. We needed to look for a new approach: becoming a Venture Client.
Accelerators and CVCs are indirect models – like using a third party’s battery technology in the cars you produce – you first make the investment and then do the adoption of the technology. The different in the Venture Client model is cutting out the middleman.
If you want to be good at something you need a dedicated unit. If you do it part time it will only work partly. If you make it a department you can have more time you can dedicate to it, you can have a dedicated budget, you have a more solid KPI structure.
BEST MOMENTS
‘More than getting into the world of Venture Client Modelling, I invented the world.’
‘A Venture Client is a company that adopts startup technologies through procurement and M&A.’
‘A corporate cannot compete against a good startup like Palantir or Oracle when they were startups.’
‘The Venture Client model will displace Corporate Venture Capital to become the standard of corporate venturing.’
ABOUT THE GUEST
As captain of the 27pilots endeavour, and the visionary behind the Venture Client model, Gregor GImmy focuses on advancing Venture Client knowledge and growing the global community through 27pilots’ corporate clients and academic allies. Gregor is deeply engaged in researching, publishing, and lecturing on the Venture Client model through leading business schools and top business engagements. Gregor is also a frequent speaker at startup-relevant conferences such as Slush, Web Summit, 4YFN and DLD.
ABOUT THE HOST
Sabine is a corporate strategist turned entrepreneur. She is the CEO and Managing Partner of Alchemy Crew a venture lab that accelerates the curation, validation, & commercialization of new tech business models. Sabine is renowned within the insurance sector for building some of the most renowned tech startup accelerators around the world working with over 30 corporate insurers, accelerated over 100 startup ventures. Sabine is the co-editor of the bestseller The INSURTECH Book, a top 50 Women in Tech, a FinTech and InsurTech Influencer, an investor & multi-award winner.
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This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/