CIO OPINION
Triple bottom line
Key takeaways
• While venture capital activity slowed throughout 2022 , this has not stopped regional companies from tapping into venturing for growth .
• Venture leaders advocate a completely new culture that breaks down silos and pushes decision making as close to the front line as possible .
• Creating such a culture calls for developing an ambidextrous organisational between evolution of the original business and the revolution of new ones .
• Corporate venturing teams can learn from the data revolution when investing in a venture .
• In light of imperfect information and algorithmic biases , teams will still need to lean on empathetic relationship building .
• The teams should explore business-model or technology innovations that unlock the right opportunities for the company .
• There is no one-size-fits-all model for corporate venturing .
• Companies need to concurrently steer innovation vehicles and lay multiple bets .
• When choosing investable themes , companies should consider where they want to be on the innovation continuum .
• C-suite executives need to take a systemic and intentional approach to venturing , they also must accept not all bets will land .
• An appetite for risk , in exchange for transforming your industry , is necessary in the world of venture .
In addition to investing in or building impact businesses , corporate venturing can embed environmental , social , and governance , ESG considerations in its decision making . Whatever innovation vehicle is chosen , the environmental and social outcome should always be considered to ensure the maximum balanced , positive ESG impact .
ESG in corporate venturing helps the parent company increase its competitiveness , transfer ESG knowledge and lessons learned , and achieve long-term sustainability goals .
Long-term value
There is no one-size-fits-all model for corporate venturing . Companies need to concurrently steer various innovation vehicles and lay multiple bets . When choosing specific investable themes , companies should consider where they want to be on the innovation continuum . C-suite executives need to take a systemic and intentional approach to venturing , but they also must accept that not all bets will land . An appetite for risk , potentially in exchange for transforming your industry , is necessary in the world of venture . outcomes may be is now an ethical responsibility , and a non-negotiable element of the business-design skill set .
Hiring the right mix of internal and external talent for venturing work is paramount to capitalise on what the parent company ’ s internal candidates bring and on the external venturing experience that those outside the company can add .
Venturing can be messy , uncertain , and a corporate character-building process . It balances science and art , drawing inspiration from both consumer insights and our impact on the planet . With the right talent , mindset , and nuanced understanding of both the core and new business opportunities , companies can pivot toward their best model , in which they pursue venturing with intent and impact . p
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