Venture client

A Venture Client is a company that purchases, uses and adopts startup solutions with the purpose of obtaining a strategic benefit.[1][2][3] Venture clienting enables companies to tap into new technologies, business models and ideas and foster a culture of agility and growth.[4]

The difference between a “normal” client and a venture client is that the startup solution presents a high risk of failing.[2][5][6] The venture client company accepts the additional risk because the startup product solves a strategically relevant problem better than alternative solutions.[6][7][8][9] The problem is strategic when it impacts the competitiveness of the venture client company.[10] The differentiating factor between traditional Corporate Venture Capital (CVC) and Venture Clienting (VCL) is that, in essence, the latter focuses on the purchase of a startup product to obtain the strategic benefit without an equity stake.[11] The term venture client was coined originally and popularized by Gregor Gimmy.[6]

Companies that can benefit strategically from startup partnering chose to establish a dedicated corporate Venture Client Unit. The purpose of such an organisational unit is to enable the entire company to gain competitive advantage from startups on a continuous basis.[12] Such venture client units operate on a dedicated venture client model, referring to venture client specific processes and resources, and are categorised as a corporate venturing vehicle.[2][9][13]

Notable Venture Client companies with a dedicated Venture Client Unit are BMW Group (BMW Startup Garage), BSH Hausgeräte (BSH Startup Kitchen), Holcim (Holcim MAQER), Bosch Group (Open Bosch) and LG Electronics (LG Future Home).[14][15][16][17][18][19][20][21][22]

## References

1. ↑ Böhm, Markus; Hein, Andreas; Hermes, Sebastian; Lurz, Martin; Poszler, Franziska; Ritter, Ann-Carolin; Setzke, David Soto; Weking, Jörg et al. (2019). "Die Rolle von Startups im Innovationssystem: Eine qualitativ-empirische Untersuchung". Studien zum deutschen Innovationssystem (2019–02). https://www.econstor.eu/bitstream/10419/194282/1/1067677356.pdf. Retrieved 4 August 2020.
2. ↑ 2.0 2.1 2.2 Sanders, David; Dumler, Carolin; Gomez, Jamie; Saleh, Nicole; Goldstein, Andy (2020). "Multi-Channel Corporate Venturing A Build, Partner, Buy approach for corporate leaders in the new decade". Deloitte Digital. https://www2.deloitte.com/de/de/pages/technology/articles/corporate-venturing.html. Retrieved 4 August 2020.
3. ↑ Gimmy, Gregor (2021-10-28). "What is a Venture Client company, and what is a good one?" (in en-US). https://medium.com/@gregor_gimmy/what-is-a-venture-client-company-and-what-is-a-good-one-395494a6880f.
4. ↑ Gutmann, Tobias; Greiss, Sebastian; Hüttenhein, Christian (2024). Venture clienting: how to partner with startups to create value. London New York, NY: Kogan Page. ISBN 978-1-3986-1694-3.
5. ↑ Siota, Josemaria; Andrea Alunni; Paola Riveros-Chacón; Mark Wilson; Mattias Karlsson Dinnetz (2020). Corporate Venturing: Insights for European Leaders in Government, University and Industry (Technical report). Publications Office of the European Union.
6. ↑ 6.0 6.1 6.2 Gimmy, Gregor; Kanbach, Dominik; Stubner, Stephan; Konig, Andreas; Enders, Albrecht (27 July 2017). "What BMW's Corporate VC Offers That Regular Investors Can't". Harvard Business Review. https://hbr.org/2017/07/what-bmws-corporate-vc-offers-that-regular-investors-cant. Retrieved 4 August 2020.
7. ↑ Croy, Rickard; Anton Wieselblad (2018). Enhancing Innovation Through Asymmetric Partnerships : How a big corporation can improve its prerequisites for opportunistic adaptation (MSc). KTH Royal Institute of Technology. Retrieved 4 August 2020.
8. ↑ Prats, Mª Julia; Amigó, Pau; Ametller, Xavier; Batlle, Adrià (2017). "Corporate Venturing: Achieving Profitable Growth Through Startups". IESE Business School (2017–01). https://media.iese.edu/research/pdfs/ST-0429-E.pdf. Retrieved 4 August 2020.
9. ↑ 9.0 9.1 Prats, Mª Julia; Siota, Josemaria; Canonici, Tommaso; Contijoch, Xavier (2018). "Open Innovation: Building, Scaling and Consolidating Your Firm's Corporate Venturing Unit". IESE Business School (2018–05). https://media.iese.edu/research/pdfs/ST-0478-E.pdf. Retrieved 4 August 2020.
10. ↑ Gimmy, Gregor (2021-10-28). "What is a Venture Client company, and what is a good one?" (in en-US). https://medium.com/@gregor_gimmy/what-is-a-venture-client-company-and-what-is-a-good-one-395494a6880f.
11. ↑ "VENTURE CLIENTING – THE NEW APPROACH TO CORPORATE VENTURING". 2019-11-11. https://www.capgemini.com/fi-en/insights/expert-perspectives/blog-venture-clienting-the-new-approach-to-corporate-venturing/.
12. ↑ "The Venture Client model" (in en-US). 2018-01-22. https://www.maize.io/magazine/you-want-your-business-to-grow-faster-become-a-startup-s-first-client/.
13. ↑ Gimmy, Gregor (2021-10-28). "What is a Venture Client company, and what is a good one?" (in en-US). https://medium.com/@gregor_gimmy/what-is-a-venture-client-company-and-what-is-a-good-one-395494a6880f.
14. ↑ Niessing, Joerg; Capron, Laurence; Furr, Nathan; Balze, Pascale; Bodner, Julia (2 May 2019). "How Corporates Co-innovate with Startups: The BMW Startup Garage". INSEAD. https://publishing.insead.edu/case/bmw-startup-garage. Retrieved 4 August 2020.
15. ↑ Kyriasoglu, Christina (24 January 2020). "Ausgebremst". Manager Magazin. https://heft.manager-magazin.de/MM/2020/2/169070111/index.html. Retrieved 4 August 2020.
16. ↑ "LG Future Home - Join to redefine the future home with LG" (in en). https://www.lgfuturehome.com/.
17. ↑ "BMW Startup Garage". https://www.bmwstartupgarage.com. Retrieved 4 August 2020.
18. ↑ "BSH Startup Kitchen". https://www.bshstartupkitchen.com/. Retrieved 4 August 2020.
19. ↑ "LH Startup MAQER". https://lhstartupmaqer.com/. Retrieved 4 August 2020.
20. ↑ "Open Innovation: Bosch honors best start-up collaboration". 16 May 2019. https://www.bosch-presse.de/pressportal/de/en/open-innovation-bosch-honors-best-start-up-collaboration-190400.html. Retrieved 4 August 2020.
21. ↑ Stueber, Juergen (24 July 2020). "Die digitalen Brutkästen der Autobauer". Tagesspiegel Background. https://background.tagesspiegel.de/digitalisierung/die-digitalen-brutkaesten-der-autobauer. Retrieved 4 August 2020.
22. ↑ "Open Bosch is the Bosch group's Venture Client unit". 20 November 2020. https://openbosch.com.

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