Venture Team

---

4.Strategies for Mitigating Risks in Corporate Venturing[Original Blog]

Corporate venturing is the process of creating, funding, and growing new businesses or ventures within or outside an existing corporation. It can be a powerful way to foster innovation, diversify revenue streams, and gain access to new markets and technologies. However, corporate venturing also involves significant risks and challenges, such as misalignment of goals and incentives, cultural clashes, resource allocation conflicts, and failure to achieve expected returns. Therefore, it is essential for corporations to adopt effective strategies for mitigating these risks and ensuring the success of their venturing activities. In this section, we will discuss some of the best practices and recommendations for managing the risks of corporate venturing from different perspectives, such as the parent corporation, the venture unit, the venture team, and the external partners. We will also provide some real-life examples of successful and unsuccessful corporate venturing to illustrate the importance of risk mitigation.

Some of the strategies for mitigating risks in corporate venturing are:

- 1. Establish a clear and shared vision and strategy for corporate venturing. The parent corporation and the venture unit should have a common understanding of the objectives, scope, and criteria for corporate venturing. They should also align their expectations and incentives regarding the performance and outcomes of the ventures. This can help to avoid confusion, conflict, and disappointment among the stakeholders and ensure that the venturing activities are aligned with the corporate strategy and vision. For example, Google has a clear and consistent vision and strategy for its corporate venturing arm, Google Ventures, which is to invest in companies that can have a positive impact on the world and create value for Google in the long term. Google Ventures operates independently from Google, but shares its vision and values, and leverages its resources and expertise.

- 2. Create a supportive and flexible organizational structure and culture for corporate venturing. The parent corporation and the venture unit should design and implement an organizational structure and culture that can support and facilitate the venturing activities. They should provide the venture unit with sufficient autonomy, resources, and authority to make decisions and execute the ventures. They should also foster a culture of innovation, experimentation, and learning that encourages the venture team to explore new opportunities, test assumptions, and learn from failures. Moreover, they should promote a culture of collaboration, communication, and trust that enables the venture team to work effectively with the parent corporation and the external partners. For example, Amazon has a supportive and flexible organizational structure and culture for its corporate venturing arm, amazon Web services (AWS), which is a leading provider of cloud computing services. AWS operates as a separate business unit within Amazon, but has access to its resources and capabilities. AWS has a culture of innovation, customer obsession, and ownership that empowers its venture team to create and deliver value for its customers and partners.

- 3. Select and develop the right venture team and leaders. The venture unit and the parent corporation should carefully select and develop the venture team and leaders who can execute the venturing activities. They should look for people who have the relevant skills, experience, and knowledge for the venture, as well as the entrepreneurial mindset, attitude, and passion. They should also provide the venture team and leaders with adequate training, coaching, and mentoring to help them acquire and improve the skills and competencies needed for corporate venturing. Furthermore, they should recognize and reward the venture team and leaders for their achievements and contributions to the venturing activities. For example, Netflix has a strong venture team and leaders who are responsible for its corporate venturing arm, Netflix Studios, which is a leading producer and distributor of original content. Netflix Studios has a talented and diverse team of writers, directors, producers, and actors who have the skills, experience, and creativity to create and deliver high-quality content. Netflix Studios also has a visionary and charismatic leader, Ted Sarandos, who is the chief content officer of Netflix and oversees the venturing activities. Sarandos has a deep understanding of the content industry and the customer preferences, and has a bold and ambitious vision for Netflix Studios. He also provides the venture team with guidance, support, and feedback, and rewards them for their performance and innovation.

One becomes an entrepreneur to break the glass ceiling and that's when you grow the market. Of course, in that process you have to be prepared to get hurt. You will get hurt. But I'm a doer and I like taking risks.

Ronnie Screwvala

---

5.Continuous Improvement and Adaptation in Corporate Venturing Governance[Original Blog]

Corporate venturing is a dynamic and complex process that requires constant monitoring and adjustment to ensure its alignment with the strategic goals and objectives of the parent company. One of the key challenges of corporate venturing is to design and implement effective governance structures and processes that can balance the needs and interests of various stakeholders, such as the corporate management, the venture team, the external partners, and the customers. In this section, we will discuss how corporate venturing governance can be improved and adapted over time to cope with the changing internal and external environment, as well as the evolving nature and performance of the venture. We will also provide some insights from different perspectives, such as the corporate, the venture, and the ecosystem level, and illustrate them with some examples from successful corporate venturing cases.

Some of the aspects that can be considered for continuous improvement and adaptation in corporate venturing governance are:

1. Feedback and learning mechanisms: Corporate venturing governance should incorporate feedback and learning mechanisms that can enable the corporate management and the venture team to evaluate the progress and performance of the venture, identify the strengths and weaknesses, and learn from the successes and failures. Feedback and learning mechanisms can include formal and informal channels of communication, such as regular meetings, reports, surveys, reviews, audits, and informal conversations. They can also involve external sources of feedback, such as customers, partners, competitors, and industry experts. Feedback and learning mechanisms can help the corporate management and the venture team to adjust the governance structures and processes according to the changing needs and expectations of the venture and its stakeholders. For example, Google X, the innovation lab of Google, uses a feedback and learning mechanism called "pre-mortem", which is a hypothetical exercise that imagines the failure of the venture and analyzes the possible causes and consequences. This helps the venture team to anticipate and mitigate the potential risks and challenges, and to improve the governance and execution of the venture.

2. Flexibility and autonomy: Corporate venturing governance should provide flexibility and autonomy to the venture team to allow them to experiment, innovate, and adapt to the market conditions and customer demands. Flexibility and autonomy can be achieved by granting the venture team the authority and responsibility to make decisions, allocate resources, and manage the operations of the venture, within certain boundaries and guidelines set by the corporate management. Flexibility and autonomy can also be enhanced by reducing the bureaucratic and hierarchical barriers that can hinder the speed and efficiency of the venture. For example, Amazon Web Services (AWS), the cloud computing division of Amazon, operates with a high degree of flexibility and autonomy within the Amazon group. AWS has its own organizational structure, culture, processes, and metrics, and is empowered to make independent decisions and pursue new opportunities, while still leveraging the resources and capabilities of the parent company.

3. Alignment and integration: Corporate venturing governance should ensure alignment and integration between the venture and the parent company, as well as between the venture and its external partners and customers. Alignment and integration can be achieved by establishing a clear and shared vision, mission, and objectives for the venture, and by aligning the incentives and rewards of the venture team and the corporate management. Alignment and integration can also be facilitated by creating and maintaining effective communication and coordination channels, such as liaison roles, cross-functional teams, joint committees, and platforms. Alignment and integration can help the venture and the parent company to leverage their complementary assets and capabilities, and to create synergies and value for both parties. For example, Apple, the technology giant, has a strong alignment and integration between its corporate venturing activities and its core business. Apple uses its corporate venturing activities to acquire or invest in startups that can enhance its product portfolio, such as Siri, Shazam, and Beats. Apple also integrates the acquired startups into its ecosystem, and provides them with access to its resources, distribution channels, and customer base.

---

6.How to define success and align with strategic objectives?[Original Blog]

One of the most difficult aspects of corporate venturing is to measure its performance and impact. Corporate venturing is a strategic initiative that aims to create new sources of growth and innovation for established firms by collaborating with external partners, such as startups, universities, or other organizations. However, unlike traditional business units, corporate ventures often have different goals, time horizons, and risk profiles, which make them hard to evaluate using conventional metrics. Moreover, corporate venturing is not only about financial returns, but also about strategic benefits, such as learning, market access, or reputation. Therefore, it is essential to define what success means for corporate venturing and how to align it with the strategic objectives of the parent firm. In this section, we will discuss some of the challenges and best practices of measuring corporate venturing, and provide some examples of how leading firms have approached this issue.

Some of the challenges of measuring corporate venturing are:

1. Choosing the right metrics: There is no one-size-fits-all metric for corporate venturing, as different types of ventures may require different indicators of success. For instance, some ventures may focus on generating revenues or profits, while others may aim to create strategic options or explore new markets. Therefore, it is important to select the metrics that reflect the specific objectives and characteristics of each venture, and that are aligned with the overall strategy of the parent firm. Some of the possible metrics for corporate venturing are:

- Financial metrics: These include measures of revenue, profit, return on investment, or internal rate of return. financial metrics are useful to assess the direct economic value of the venture, and to compare it with other investment opportunities. However, financial metrics may not capture the full potential of the venture, especially if it is in an early stage or has a long-term horizon. Moreover, financial metrics may not reflect the strategic value of the venture, such as the knowledge or capabilities it generates, or the relationships it builds.

- Strategic metrics: These include measures of market share, customer satisfaction, brand awareness, or competitive advantage. Strategic metrics are useful to evaluate the impact of the venture on the parent firm's core business, and to identify the opportunities or threats it creates or faces. However, strategic metrics may be difficult to quantify or attribute, as they may depend on external factors or interactions. Moreover, strategic metrics may not account for the learning or experimentation value of the venture, such as the insights or innovations it produces, or the risks it mitigates.

- Innovation metrics: These include measures of patents, publications, prototypes, or new products or services. Innovation metrics are useful to assess the output and outcome of the venture, and to track its progress and performance. However, innovation metrics may not capture the quality or relevance of the innovation, or its adoption or diffusion. Moreover, innovation metrics may not reflect the input or process of the venture, such as the resources or capabilities it consumes or develops, or the culture or practices it fosters.

2. collecting and analyzing the data: Once the metrics are chosen, the next challenge is to collect and analyze the data that supports them. This may involve several issues, such as:

- Data availability and reliability: Depending on the type and stage of the venture, the data may be scarce, incomplete, or inaccurate. For instance, some ventures may not have a clear revenue stream or customer base, or may operate in uncertain or dynamic markets. Therefore, it is important to ensure that the data is available and reliable, and to use appropriate methods and tools to collect and validate it. Some of the possible sources of data for corporate venturing are:

- Internal data: This includes the data that is generated or stored within the parent firm or the venture, such as financial statements, sales reports, or employee surveys. Internal data is usually easy to access and control, and can provide a detailed and consistent view of the venture. However, internal data may not be sufficient or relevant, as it may not reflect the external environment or the customer perspective.

- External data: This includes the data that is obtained or derived from outside the parent firm or the venture, such as market research, industry reports, or customer feedback. External data is usually more comprehensive and diverse, and can provide a broader and richer view of the venture. However, external data may be hard to acquire and verify, and may vary in quality and reliability.

- Mixed data: This includes the data that is created or enhanced by combining or integrating internal and external data, such as benchmarks, dashboards, or analytics. Mixed data is usually more powerful and insightful, and can provide a balanced and holistic view of the venture. However, mixed data may be complex and costly, and may require advanced skills and technologies to produce and interpret.

- Data interpretation and communication: After the data is collected and analyzed, the next issue is to interpret and communicate the results in a meaningful and actionable way. This may involve several challenges, such as:

- Data relevance and alignment: The data should be relevant and aligned with the objectives and expectations of the stakeholders, such as the parent firm, the venture team, or the external partners. For instance, the data should answer the key questions and address the main concerns of the stakeholders, and should be consistent and coherent with their vision and strategy. Moreover, the data should be updated and adjusted as the objectives and expectations evolve over time.

- Data clarity and simplicity: The data should be clear and simple to understand and use, especially for non-expert or non-technical audiences. For instance, the data should be presented in a visual and interactive way, using charts, graphs, or tables, and should highlight the main findings and implications. Moreover, the data should be concise and focused, avoiding unnecessary or redundant information.

- Data credibility and transparency: The data should be credible and transparent, showing the sources, methods, and assumptions behind it. For instance, the data should be supported by evidence and logic, and should acknowledge the limitations and uncertainties involved. Moreover, the data should be open and accessible, allowing the stakeholders to verify and challenge it.

3. Using the data to inform decisions and actions: The ultimate goal of measuring corporate venturing is to use the data to inform decisions and actions that improve the performance and impact of the venture. This may require several steps, such as:

- Data feedback and learning: The data should be used to provide feedback and learning to the parent firm and the venture team, helping them to identify the strengths and weaknesses of the venture, and to discover the opportunities and threats it faces. For instance, the data should be used to monitor and evaluate the progress and performance of the venture, and to compare it with the goals and expectations. Moreover, the data should be used to generate and test hypotheses and assumptions, and to explore and experiment with new ideas and solutions.

- Data alignment and integration: The data should be used to align and integrate the parent firm and the venture team, ensuring that they share a common vision and strategy, and that they collaborate and coordinate effectively. For instance, the data should be used to communicate and align the objectives and expectations of the stakeholders, and to resolve any conflicts or trade-offs. Moreover, the data should be used to integrate and leverage the resources and capabilities of the parent firm and the venture team, and to create and maintain a supportive and conducive culture and environment.

- data action and impact: The data should be used to guide and support the decisions and actions that lead to the desired outcomes and impact of the venture. For instance, the data should be used to prioritize and allocate the resources and efforts of the parent firm and the venture team, and to optimize and adjust the business model and value proposition of the venture. Moreover, the data should be used to measure and demonstrate the value and impact of the venture, and to celebrate and reward the achievements and contributions of the parent firm and the venture team.

Some of the best practices of measuring corporate venturing are:

- Define the purpose and scope of the measurement: Before choosing the metrics and collecting the data, it is important to define the purpose and scope of the measurement, such as why, what, when, who, and how to measure. This can help to clarify the objectives and expectations of the measurement, and to align the stakeholders and their interests. For example, some of the possible purposes of measuring corporate venturing are:

- To inform: To provide information and insights about the venture, such as its progress, performance, or impact.

- To improve: To identify and address the gaps and issues of the venture, and to enhance its efficiency and effectiveness.

- To inspire: To motivate and engage the parent firm and the venture team, and to foster a culture of innovation and entrepreneurship.

- To influence: To communicate and demonstrate the value and impact of the venture, and to attract and retain the support and resources of the stakeholders.

- Customize the metrics and data to the context and stage of the venture: Rather than using a standard or generic set of metrics and data, it is advisable to customize them to the specific context and stage of the venture, such as its type, size, industry, or maturity. This can help to capture the unique characteristics and challenges of the venture, and to reflect its evolution and development over time. For example, some of the possible contexts and stages of the venture are:

- Type: The type of the venture refers to the mode or mechanism of corporate venturing, such as internal or external, organic or inorganic, or collaborative or competitive. Different types of ventures may have different goals, processes, and outcomes, and may require different metrics and data to measure them. For instance, internal ventures may focus more on innovation metrics, while external ventures may focus more on financial metrics.

- Size: The size of the venture refers to the scale or scope of the venture, such as its revenue, profit, market share, or customer base.

---

7.What are the main takeaways and recommendations for corporate venturing scaling?[Original Blog]

corporate venturing scaling is the process of expanding and growing a corporate venturing product or service beyond its initial market or customer segment. It involves overcoming various challenges and risks, such as finding the right partners, managing the innovation portfolio, aligning the corporate and venture goals, and fostering a culture of experimentation and learning. In this section, we will summarize the main takeaways and recommendations for corporate venturing scaling, based on the insights from different perspectives, such as the corporate parent, the venture team, the external ecosystem, and the customers. We will also provide some examples of successful corporate venturing scaling cases to illustrate the best practices and lessons learned.

The main takeaways and recommendations for corporate venturing scaling are:

1. Define a clear scaling strategy and roadmap. The corporate parent and the venture team should agree on the vision, objectives, and metrics for scaling the corporate venturing product or service. They should also identify the key milestones, activities, and resources required for scaling, and monitor the progress and performance regularly. A clear scaling strategy and roadmap can help align the expectations, communicate the value proposition, and prioritize the actions for scaling.

2. Leverage the corporate assets and capabilities. The corporate parent can provide valuable assets and capabilities to support the scaling of the corporate venturing product or service, such as brand recognition, customer base, distribution channels, technology, data, expertise, and funding. The venture team should leverage these assets and capabilities to enhance their competitive advantage, reach new markets, and reduce the costs and risks of scaling. However, the venture team should also maintain a degree of autonomy and flexibility to adapt to the changing market conditions and customer needs.

3. Build a strong and diverse venture team. The venture team is the key driver of the scaling process, and it should consist of talented and motivated individuals who share the vision and passion for the corporate venturing product or service. The venture team should also have a diverse mix of skills, backgrounds, and perspectives, to foster creativity, innovation, and collaboration. The corporate parent should support the venture team by providing them with the necessary training, coaching, mentoring, and recognition, as well as creating a safe and supportive environment for them to experiment and learn.

4. Engage with the external ecosystem. The external ecosystem, such as the customers, partners, suppliers, competitors, regulators, and investors, can offer valuable feedback, insights, opportunities, and resources for scaling the corporate venturing product or service. The venture team should engage with the external ecosystem regularly, by conducting market research, customer validation, co-creation, networking, and pitching. The venture team should also be open to collaborate with the external ecosystem, by forming strategic alliances, joint ventures, or acquisitions, to access new markets, technologies, or capabilities.

5. Iterate and improve the corporate venturing product or service. The scaling process is not a linear or predictable one, but rather a dynamic and iterative one, that requires constant testing, learning, and improvement. The venture team should adopt a lean and agile approach to scaling the corporate venturing product or service, by using the minimum viable product (MVP), the build-measure-learn loop, and the pivot or persevere decision. The venture team should also collect and analyze data and feedback from the customers and the market, to validate the assumptions, measure the impact, and identify the gaps and opportunities for improvement.

Some examples of successful corporate venturing scaling cases are:

- Google X: Google X is the moonshot factory of Google, that aims to create radical new technologies that can solve some of the world's biggest problems. Some of the products and services that emerged from Google X and scaled to become independent businesses are Waymo (self-driving cars), Loon (internet balloons), Wing (drone delivery), and Verily (life sciences). Google X leverages the corporate assets and capabilities of Google, such as the data, technology, and funding, to support the scaling of its ventures. Google X also engages with the external ecosystem, such as the customers, partners, and regulators, to test and validate its ventures. Google X also iterates and improves its ventures, by using the MVP, the build-measure-learn loop, and the pivot or persevere decision.

- amazon Web services (AWS): AWS is the cloud computing platform of Amazon, that provides a variety of services, such as computing, storage, database, analytics, and artificial intelligence, to millions of customers around the world. AWS started as an internal project of Amazon, to improve the efficiency and scalability of its e-commerce operations. AWS then scaled to become an independent and profitable business unit of Amazon, that generates billions of dollars in revenue. AWS defines a clear scaling strategy and roadmap, based on the vision, objectives, and metrics for scaling. AWS also builds a strong and diverse venture team, that consists of engineers, developers, architects, and managers, who share the passion and expertise for cloud computing. AWS also leverages the corporate assets and capabilities of Amazon, such as the brand recognition, customer base, distribution channels, and funding, to enhance its competitive advantage and reach new markets.

---

8.How can corporations best support their ventures after launch?[Original Blog]

In order for a corporation to best support their ventures after launch, they need to have a clear understanding of what their ventures goals are and how to best achieve them. They also need to create a supportive environment within the company that allows for creativity and risk-taking. Additionally, they need to establish clear lines of communication and provide adequate resources.

One of the most important things a corporation can do to support their ventures after launch is to have a clear understanding of what their ventures goals are and how to best achieve them. Without this understanding, it will be difficult for the corporation to know how to best support the venture. The corporation should work closely with the venture team to ensure that they have a clear understanding of the ventures goals and how the corporation can help to achieve them.

It is also important for the corporation to create a supportive environment within the company that allows for creativity and risk-taking. This environment should be one in which the venture team feels comfortable sharing their ideas and taking risks. The corporation should provide the venture team with the resources they need to be successful, such as access to funding, mentorship, and advice from experienced entrepreneurs.

In addition to providing the venture team with resources, it is also important for the corporation to establish clear lines of communication. The corporation should provide the venture team with regular updates on the company's progress and give them access to decision-makers within the corporation. Additionally, the corporation should create an environment in which the venture team feels comfortable communicating their needs and concerns.

By having a clear understanding of their ventures goals, establishing a supportive environment within the company, and providing adequate resources, corporations can best support their ventures after launch.

---

9.Aligning the Vision with[Original Blog]

One of the key challenges of corporate venturing is to align the vision of the corporate parent and the venture team. A clear and compelling vision can help to motivate, inspire, and guide the venture team, as well as to communicate the value proposition and strategic direction of the venture to the corporate parent and other stakeholders. However, creating and communicating a vision for corporate venturing is not a trivial task. It requires a careful balance between the aspirations of the venture team and the expectations of the corporate parent, as well as a consideration of the market opportunities, customer needs, and competitive landscape. In this section, we will discuss some of the best practices and tips for aligning the vision with the corporate parent and the venture team, as well as some of the common pitfalls and challenges to avoid. We will cover the following topics:

1. How to create a vision for corporate venturing. A vision is a concise and compelling statement that describes the desired future state of the venture. It should answer the questions: What are we trying to achieve? Why are we doing this? How are we different from others? A good vision should be realistic, but also ambitious and inspiring. It should reflect the core values and purpose of the venture, as well as the unique value proposition and competitive advantage of the venture. A good vision should also be aligned with the corporate parent's vision, mission, and strategy, as well as the market opportunities and customer needs. To create a vision for corporate venturing, the venture team should involve the corporate parent and other stakeholders in the process, and use tools such as brainstorming, storytelling, and vision boards to generate and refine ideas.

2. How to communicate the vision for corporate venturing. A vision is only effective if it is communicated and understood by the relevant audiences. The venture team should use various channels and methods to communicate the vision to the corporate parent and other stakeholders, such as presentations, pitches, newsletters, blogs, social media, and events. The venture team should also tailor the message and the tone to the different audiences, and use stories, examples, and data to illustrate and support the vision. The venture team should also seek feedback and input from the corporate parent and other stakeholders, and adjust the vision accordingly if needed.

3. How to align the vision with the corporate parent and the venture team. A vision is only meaningful if it is shared and supported by the corporate parent and the venture team. The venture team should strive to create a sense of ownership and commitment to the vision among the corporate parent and the venture team, as well as a common understanding and agreement on the vision. The venture team should also align the vision with the goals, objectives, and metrics of the corporate parent and the venture team, and ensure that the vision is translated into actions and outcomes. The venture team should also monitor and measure the progress and performance of the venture against the vision, and celebrate and communicate the achievements and learnings along the way.

Some examples of successful visions for corporate venturing are:

- Google X: "To invent and launch 'moonshot' technologies that we hope could someday make the world a radically better place."

- amazon Web services: "To enable developers and businesses to use web services to build scalable, sophisticated applications."

- BMW i Ventures: "To shape the future of mobility by investing in visionary founders and companies that are transforming the way we move."

Some of the common pitfalls and challenges of aligning the vision with the corporate parent and the venture team are:

- Lack of clarity and consistency. The vision is vague, ambiguous, or contradictory, and does not provide a clear direction or guidance for the venture.

- Lack of alignment and support. The vision is not aligned with the corporate parent's vision, mission, and strategy, or the market opportunities and customer needs, and does not receive the necessary resources, endorsement, or recognition from the corporate parent.

- Lack of engagement and commitment. The vision is not shared or supported by the venture team, or the corporate parent and other stakeholders, and does not create a sense of ownership, motivation, or inspiration for the venture.

- Lack of adaptation and evolution. The vision is rigid, static, or outdated, and does not reflect the changes and learnings in the external and internal environment, and does not allow for experimentation, iteration, or pivoting of the venture.

---

10.Establishing Ethical Guidelines for Corporate Venturing[Original Blog]

One of the most important aspects of corporate venturing is to establish ethical guidelines that govern the relationship between the parent company and the venture, as well as the conduct of the venture itself. Ethical guidelines are not only necessary to comply with the law and avoid reputational damage, but also to foster a culture of trust, integrity, and innovation within the corporate venturing ecosystem. However, creating and implementing ethical guidelines for corporate venturing is not a simple task, as it involves balancing the interests and values of multiple stakeholders, such as the parent company, the venture team, the customers, the investors, the regulators, and the society at large. In this section, we will explore some of the key challenges and best practices for establishing ethical guidelines for corporate venturing, based on the insights from different point of views.

Some of the main challenges for establishing ethical guidelines for corporate venturing are:

1. Defining the scope and purpose of the guidelines. The first challenge is to determine what kind of ethical issues the guidelines should address, and what are the objectives and principles that guide them. For example, should the guidelines cover only the legal and compliance aspects of corporate venturing, or should they also include the social and environmental impacts of the venture? Should the guidelines be aligned with the parent company's values and mission, or should they reflect the specific needs and goals of the venture? Should the guidelines be flexible and adaptable to different contexts and situations, or should they be rigid and prescriptive?

2. Engaging and involving the relevant stakeholders. The second challenge is to ensure that the ethical guidelines are developed and implemented with the participation and input of the relevant stakeholders, such as the parent company's executives, the venture team, the customers, the investors, the regulators, and the society at large. This is important to ensure that the guidelines are legitimate, relevant, and acceptable to all parties involved, and that they reflect the diverse perspectives and expectations of the corporate venturing ecosystem. However, engaging and involving the stakeholders can also pose some difficulties, such as managing the potential conflicts of interest, ensuring the representation and inclusion of different voices, and balancing the trade-offs and compromises among different values and interests.

3. Monitoring and enforcing the compliance and performance of the guidelines. The third challenge is to ensure that the ethical guidelines are not only written and communicated, but also followed and respected by the parent company and the venture, and that they are evaluated and improved over time. This requires establishing effective mechanisms and processes for monitoring and enforcing the compliance and performance of the guidelines, such as audits, reviews, feedback, incentives, sanctions, and reporting. However, monitoring and enforcing the guidelines can also raise some issues, such as ensuring the accountability and transparency of the parent company and the venture, protecting the confidentiality and privacy of the data and information, and dealing with the potential breaches and violations of the guidelines.

Some of the best practices for establishing ethical guidelines for corporate venturing are:

- Conducting a thorough and systematic analysis of the ethical risks and opportunities of the venture. Before developing the ethical guidelines, it is important to identify and assess the ethical risks and opportunities that the venture may face or create, such as the potential impacts on the customers, the employees, the environment, the society, and the parent company. This can help to prioritize the most relevant and urgent ethical issues, and to design the guidelines accordingly.

- Benchmarking and learning from the existing ethical frameworks and standards. Rather than reinventing the wheel, it is useful to benchmark and learn from the existing ethical frameworks and standards that are applicable or relevant to the venture, such as the industry best practices, the international norms, the regulatory requirements, and the academic research. This can help to ensure that the guidelines are consistent and compatible with the established ethical expectations and benchmarks, and to avoid duplication or contradiction with other ethical frameworks and standards.

- Creating a clear and concise document that communicates the guidelines effectively. The ethical guidelines should be written and presented in a clear and concise manner, using simple and understandable language, and avoiding jargon and ambiguity. The document should communicate the scope and purpose of the guidelines, the objectives and principles that guide them, the specific rules and policies that apply to different situations and scenarios, and the roles and responsibilities of the parent company and the venture. The document should also provide examples and case studies that illustrate the application and implementation of the guidelines, and the expected outcomes and benefits of following them.

- Providing adequate training and education to the parent company and the venture team. The ethical guidelines should be accompanied by adequate training and education programs that aim to raise the awareness and understanding of the parent company and the venture team about the ethical issues and expectations of corporate venturing, and to equip them with the skills and tools to apply and implement the guidelines effectively. The training and education programs should be tailored to the specific needs and characteristics of the parent company and the venture team, and should be updated and refreshed regularly to reflect the changes and developments in the corporate venturing environment.

- Establishing a culture of ethical and responsible corporate venturing. The ethical guidelines should not be seen as a mere compliance tool, but as a way to foster a culture of ethical and responsible corporate venturing within the parent company and the venture. This means that the parent company and the venture should not only follow the guidelines, but also embrace and promote the values and principles that underpin them, such as trust, integrity, innovation, and social responsibility. This also means that the parent company and the venture should encourage and support the ethical behavior and decision-making of the parent company and the venture team, such as by providing recognition, rewards, feedback, and mentoring.

---

11.How to adapt and evolve your metrics as your ventures grow and mature?[Original Blog]

One of the challenges of corporate venturing is to design and implement metrics that can capture the value and impact of the ventures, both in terms of financial returns and strategic alignment. However, these metrics are not static and need to be adapted and evolved as the ventures grow and mature. In this section, we will explore how to adjust and update your metrics according to the different stages of the venture lifecycle, from ideation to scaling to exit. We will also discuss how to balance the needs and expectations of different stakeholders, such as the corporate parent, the venture team, and the external partners. Here are some of the key points to consider:

1. Define the objectives and outcomes of each stage. Before you can measure the performance and impact of your ventures, you need to define what you want to achieve and what success looks like at each stage of the venture lifecycle. For example, at the ideation stage, you may want to focus on metrics that reflect the quality and quantity of the ideas generated, such as the number of ideas submitted, the diversity of the sources, the relevance to the strategic themes, and the potential market size. At the scaling stage, you may want to focus on metrics that reflect the growth and profitability of the ventures, such as the revenue, the market share, the customer retention, and the return on investment.

2. Use a balanced scorecard approach. A balanced scorecard is a framework that allows you to measure and evaluate the performance and impact of your ventures from different perspectives, such as financial, customer, internal, and learning. By using a balanced scorecard, you can ensure that you are not only looking at the short-term financial results, but also at the long-term strategic value and the learning outcomes of your ventures. For example, you can use the financial perspective to measure the revenue, the cost, and the profitability of your ventures; the customer perspective to measure the satisfaction, the loyalty, and the referrals of your customers; the internal perspective to measure the efficiency, the quality, and the innovation of your processes; and the learning perspective to measure the skills, the knowledge, and the culture of your venture team.

3. Align the metrics with the incentives and rewards. One of the key factors that can influence the behavior and motivation of your venture team is the incentives and rewards that they receive. Therefore, it is important to align the metrics that you use to evaluate the performance and impact of your ventures with the incentives and rewards that you offer to your venture team. For example, if you want to encourage your venture team to take risks and experiment with new ideas, you may want to reward them based on the learning outcomes and the feedback that they receive, rather than the financial results. If you want to encourage your venture team to collaborate and share best practices with other teams, you may want to reward them based on the contribution and the impact that they make to the overall corporate venturing portfolio, rather than the individual venture performance.

4. Review and update the metrics regularly. As your ventures grow and mature, you may need to review and update the metrics that you use to measure and evaluate their performance and impact. This is because the metrics that are relevant and meaningful at one stage may not be applicable or appropriate at another stage. For example, at the early stage, you may want to use metrics that are more qualitative and exploratory, such as the customer feedback, the market validation, and the product-market fit. At the later stage, you may want to use metrics that are more quantitative and exploitative, such as the revenue, the margin, and the return on investment. By reviewing and updating your metrics regularly, you can ensure that they reflect the current reality and the future potential of your ventures.

How to adapt and evolve your metrics as your ventures grow and mature - Corporate venturing metrics: How to measure and evaluate the performance and impact of your ventures

---

12.Monitoring and Performance Evaluation[Original Blog]

Monitoring the Performance

The final stage of the corporate venturing lifecycle is monitoring and performance evaluation. This stage involves measuring the progress and outcomes of the venture, assessing its impact on the parent company and the external market, and providing feedback and support to the venture team. Monitoring and performance evaluation are essential for ensuring that the venture is aligned with the strategic goals of the parent company, that it is delivering value to the customers and stakeholders, and that it is learning and adapting to the changing environment. In this section, we will discuss some of the best practices and challenges of monitoring and performance evaluation, and provide some examples of how different companies approach this stage.

Some of the best practices of monitoring and performance evaluation are:

1. Define clear and relevant metrics and indicators. The venture should have a set of metrics and indicators that reflect its objectives, value proposition, and key activities. These metrics and indicators should be SMART (specific, measurable, achievable, relevant, and time-bound), and should be aligned with the parent company's metrics and indicators. The venture should also have a dashboard or a scorecard that tracks and displays these metrics and indicators regularly and transparently.

2. Use a balanced and holistic approach. The venture should not rely on a single or narrow measure of performance, but rather use a balanced and holistic approach that captures both the financial and non-financial aspects of the venture, such as revenue, profitability, customer satisfaction, social impact, innovation, learning, and growth. The venture should also consider both the short-term and long-term outcomes of the venture, and balance the trade-offs between them.

3. Involve multiple stakeholders and perspectives. The venture should involve multiple stakeholders and perspectives in the monitoring and performance evaluation process, such as the parent company, the venture team, the customers, the partners, the investors, and the competitors. The venture should solicit and incorporate feedback from these stakeholders and perspectives, and use them to validate, challenge, and improve the venture's performance. The venture should also communicate and share its performance results and learnings with these stakeholders and perspectives, and foster a culture of transparency and accountability.

4. Adapt and iterate. The venture should recognize that monitoring and performance evaluation is not a one-time or static activity, but rather an ongoing and dynamic process that requires constant adaptation and iteration. The venture should review and update its metrics and indicators, its data sources and methods, and its performance targets and benchmarks, based on the changes and uncertainties in the internal and external environment. The venture should also use the monitoring and performance evaluation results and feedback to identify and implement improvements and changes in the venture's strategy, value proposition, business model, and operations.

Some of the challenges of monitoring and performance evaluation are:

- Lack of alignment and integration. The venture may face a lack of alignment and integration between its metrics and indicators and the parent company's metrics and indicators, or between its performance results and the parent company's expectations and incentives. This may lead to conflicts, misunderstandings, and misalignment of interests and resources between the venture and the parent company.

- Lack of data and information. The venture may face a lack of data and information to measure and evaluate its performance, especially in the early stages of the venture, or in the areas of non-financial or intangible performance. This may lead to difficulties, inaccuracies, and biases in the monitoring and performance evaluation process, and may limit the venture's ability to learn and improve.

- Lack of flexibility and agility. The venture may face a lack of flexibility and agility in the monitoring and performance evaluation process, especially in the face of changes and uncertainties in the internal and external environment. This may lead to rigidity, inertia, and complacency in the venture, and may hinder the venture's ability to adapt and innovate.

Some of the examples of how different companies approach monitoring and performance evaluation are:

- Google X. Google X is the moonshot factory of Google, where it develops and launches radical and ambitious ventures that aim to solve some of the world's biggest problems. Google X uses a rigorous and systematic approach to monitor and evaluate its ventures, which it calls the "Innovation Review". The Innovation Review is a periodic and structured meeting where the venture team presents its progress and challenges to a panel of experts and leaders from Google X and Google. The panel provides feedback, questions, and suggestions to the venture team, and decides whether to continue, pivot, or kill the venture. The Innovation Review is based on a set of criteria and metrics that reflect the moonshot philosophy of Google X, such as the problem, the solution, the technology, the user, the impact, and the risk.

- Unilever Foundry. Unilever Foundry is the innovation platform of Unilever, where it collaborates and invests in startups and entrepreneurs that are relevant to its brands and businesses. Unilever Foundry uses a collaborative and holistic approach to monitor and evaluate its ventures, which it calls the "Foundry Scorecard". The Foundry Scorecard is a tool that tracks and measures the performance and impact of the ventures across four dimensions: financial, strategic, operational, and social. The Foundry Scorecard is co-created and co-owned by the venture team and the Unilever brand or business team, and is updated and reviewed regularly and transparently. The Foundry Scorecard is used to guide and support the decision-making and learning process of the ventures, and to communicate and demonstrate the value and benefits of the ventures to the Unilever organization and stakeholders.

Monitoring and Performance Evaluation - Corporate venturing stages: How to manage the different stages of your venturing lifecycle

---

13.Exit Strategies and Harvesting Returns[Original Blog]

The final stage of the corporate venturing lifecycle is the exit stage, where the corporate parent decides how to realize the value created by the venture. This stage involves evaluating the performance and potential of the venture, choosing the best exit option, and executing the exit plan. The exit stage is crucial for the corporate parent to capture the returns from its venturing activities and to demonstrate the success of its innovation strategy. However, exiting a venture is not a simple or straightforward process. It requires careful planning, communication, and negotiation with various stakeholders, such as the venture team, the customers, the partners, and the investors. In this section, we will discuss some of the key aspects and challenges of the exit stage, and provide some best practices and examples of how to manage it effectively.

Some of the main points to consider in the exit stage are:

1. The timing and criteria of the exit decision. The corporate parent should have a clear and consistent framework for deciding when and how to exit a venture. This framework should be based on the strategic objectives, the financial performance, and the market conditions of the venture. The corporate parent should also monitor the venture's progress and milestones, and review the exit decision periodically. Some of the common criteria for exiting a venture are:

- The venture has achieved its strategic and financial goals, and has reached a mature or saturated stage in its market.

- The venture has failed to meet its expectations, and has no viable prospects for improvement or turnaround.

- The venture has become misaligned with the corporate parent's core business or vision, and has no synergies or complementarities with it.

- The venture has attracted interest from external buyers or investors, who offer a favorable valuation or terms for the corporate parent.

2. The exit options and methods. The corporate parent should evaluate the different exit options and methods available for the venture, and choose the one that maximizes the value and minimizes the risk for the corporate parent. Some of the common exit options and methods are:

- Selling the venture to a third party. This option involves transferring the ownership and control of the venture to an external buyer, such as a competitor, a customer, a supplier, or a financial investor. This option can generate a high return for the corporate parent, especially if the venture has a strong market position, a loyal customer base, or a unique technology or capability. However, this option also entails a high risk of losing the strategic benefits and the learning opportunities from the venture, as well as a potential loss of reputation or trust from the venture team or the customers. Therefore, the corporate parent should carefully select the buyer, negotiate the price and the terms, and ensure a smooth transition and integration of the venture.

- Spinning off the venture as an independent entity. This option involves creating a separate legal and organizational structure for the venture, and allowing it to operate autonomously from the corporate parent. This option can preserve the entrepreneurial culture and the innovation potential of the venture, as well as create a new source of revenue and value for the corporate parent. However, this option also requires a significant investment and effort from the corporate parent, such as providing capital, resources, and support to the venture, establishing a governance and reporting system, and managing the relationship and the expectations of the venture team and the customers. Therefore, the corporate parent should assess the feasibility and the attractiveness of this option, and determine the optimal level of involvement and influence in the venture.

- Integrating the venture into the corporate parent. This option involves incorporating the venture into the existing business units or functions of the corporate parent, and leveraging the synergies and the complementarities between them. This option can enhance the competitive advantage and the efficiency of the corporate parent, as well as facilitate the diffusion and the adoption of the venture's innovations across the organization. However, this option also poses a high risk of disrupting or diluting the culture and the identity of the venture, as well as creating conflicts or tensions between the venture team and the corporate parent's employees. Therefore, the corporate parent should carefully design and implement the integration process, and balance the need for alignment and autonomy of the venture.

3. The exit execution and management. The corporate parent should plan and execute the exit process in a timely and professional manner, and manage the post-exit relationship and outcomes with the venture and the other stakeholders. Some of the key steps and actions in the exit execution and management are:

- Communicating the exit decision and rationale to the venture team, the customers, the partners, and the investors, and addressing their concerns and expectations.

- Preparing and sharing the relevant information and documents about the venture, such as the financial statements, the customer contracts, the intellectual property rights, and the employee agreements.

- conducting the due diligence and the valuation of the venture, and negotiating the exit terms and conditions with the buyer or the investor.

- Finalizing and signing the exit agreement, and transferring the ownership and the assets of the venture.

- Providing the necessary support and assistance to the venture during the transition and integration period, such as the technical, operational, and legal support.

- Monitoring and evaluating the exit performance and impact, and collecting the feedback and the lessons learned from the venture.

Some examples of successful exits from corporate ventures are:

- Google's acquisition of YouTube. In 2006, Google acquired YouTube, a video-sharing platform that was founded in 2005 as a venture backed by Sequoia Capital. Google paid $1.65 billion in stock for YouTube, which had more than 100 million video views per day and 65,000 new videos uploaded per day at the time of the acquisition. The acquisition enabled Google to expand its online advertising business and to compete with other media companies. YouTube also benefited from Google's technology, infrastructure, and resources, and continued to grow and innovate as a separate brand and division within Google.

- eBay's spin-off of PayPal. In 2015, eBay spun off PayPal, a digital payment service that was acquired by eBay in 2002 for $1.5 billion. The spin-off was driven by the pressure from activist investors, who argued that PayPal was undervalued and constrained by eBay, and that it could perform better as an independent company. The spin-off created two separate and focused companies, each with its own strategy, vision, and culture. PayPal was able to pursue new opportunities and partnerships in the fast-growing online and mobile payment market, while eBay was able to focus on its core e-commerce and marketplace business.

- Cisco's integration of WebEx. In 2007, Cisco integrated WebEx, a web conferencing and collaboration service that was acquired by Cisco in 2007 for $3.2 billion. WebEx was a leader in the online meeting and collaboration market, with more than 2 million registered users and 64,000 corporate customers at the time of the acquisition. The integration enabled Cisco to enhance its portfolio of communication and networking products and services, and to offer a comprehensive and integrated solution for enterprise customers. WebEx also gained access to Cisco's global sales and distribution network, and leveraged Cisco's technology and expertise to improve its service quality and reliability.

Exit Strategies and Harvesting Returns - Corporate venturing stages: How to manage the different stages of your venturing lifecycle

---

14.Lack of focus and discipline[Original Blog]

Lack of focus

Lack of focus and discipline is often cited as a common pitfall associated with corporate venturing. In order to be successful, corporate venturing requires a high degree of focus and discipline from both the corporate parent and the venture team.

The corporate parent needs to clearly define the objectives of the venture and put in place systems and processes to ensure that the venture team remains focused on these objectives. The venture team needs to be disciplined in execution, monitoring progress against milestones and course correcting when necessary.

Lack of focus and discipline can lead to a number of problems, including:

The venture team losing sight of the objectives of the venture and wandering off into unrelated areas

The venture team failing to execute effectively, leading to delays and cost overruns

The venture team making decisions that are not aligned with the objectives of the venture, resulting in wasted resources

If you want your corporate venturing initiative to be successful, it is essential that you maintain a high degree of focus and discipline.

---

15.Mitigating Challenges in Corporate Venture Building[Original Blog]

Mitigating Challenges

Challenges in Corporate

One of the most critical aspects of corporate venture building is managing risk. Unlike traditional startups, corporate ventures have to deal with the challenges of operating within a larger organization, such as aligning with the corporate strategy, culture, and governance, as well as competing for resources and attention with other business units. Moreover, corporate ventures face the uncertainty and complexity of developing new products, markets, and business models in a fast-changing environment. How can corporate venture builders mitigate these challenges and increase the chances of success for their ventures? Here are some insights and best practices from different perspectives:

- From the corporate perspective: The corporate sponsor of the venture should provide clear and consistent support and guidance to the venture team, as well as ensure that the venture is aligned with the corporate vision, values, and goals. The corporate sponsor should also facilitate the integration and collaboration between the venture and the rest of the organization, as well as protect the venture from unnecessary interference or bureaucracy. Additionally, the corporate sponsor should monitor and evaluate the performance and progress of the venture, and be ready to adjust or terminate the venture if needed.

- From the venture team perspective: The venture team should adopt a lean and agile approach to venture building, by validating their assumptions and hypotheses with real customers and stakeholders, and iterating their product, market, and business model based on feedback and data. The venture team should also leverage the resources and capabilities of the corporate parent, such as access to customers, partners, distribution channels, technology, and talent, while maintaining their autonomy and flexibility. Furthermore, the venture team should communicate and report their activities and results to the corporate sponsor and other relevant stakeholders, and seek their input and support when necessary.

- From the customer perspective: The customer is the ultimate judge of the value and viability of the venture. The venture team should focus on solving a real and important problem for the customer, and deliver a solution that is superior and differentiated from the existing alternatives. The venture team should also engage and involve the customer throughout the venture building process, by co-creating the solution, testing the product, providing feedback, and advocating for the venture. Additionally, the venture team should segment and target the customer base according to their needs, preferences, and behaviors, and tailor their value proposition and marketing strategy accordingly.

---

16.How to avoid or overcome them?[Original Blog]

Corporate venturing is a strategic approach to innovation that involves creating, investing in, or partnering with external startups or entrepreneurs. It can offer many benefits to established corporations, such as access to new markets, technologies, talent, and ideas. However, corporate venturing also comes with many challenges and pitfalls that can undermine its success and lead to failure. In this section, we will discuss some of the common pitfalls and challenges of corporate venturing and how to avoid or overcome them.

Some of the common pitfalls and challenges of corporate venturing are:

1. Lack of alignment between the corporate and the venture goals, culture, values, and expectations. This can result in conflicts, misunderstandings, and mistrust between the parties, as well as poor performance and outcomes. To avoid or overcome this pitfall, it is important to establish a clear and shared vision, mission, and strategy for the corporate venturing initiative, and to communicate it effectively to all the stakeholders. It is also essential to align the incentives, metrics, and rewards for both the corporate and the venture teams, and to foster a culture of collaboration, learning, and feedback.

2. Lack of autonomy for the venture team to operate independently and flexibly. This can hamper the venture's ability to experiment, iterate, and adapt to the changing market and customer needs. It can also create frustration and demotivation for the venture team, who may feel constrained by the corporate bureaucracy, rules, and processes. To avoid or overcome this pitfall, it is important to grant the venture team enough autonomy and resources to pursue their own goals and decisions, while still maintaining some oversight and guidance from the corporate. It is also important to create a separate and agile governance structure for the corporate venturing initiative, and to reduce the barriers and friction between the corporate and the venture functions.

3. Lack of integration between the corporate and the venture assets, capabilities, and networks. This can limit the value creation and capture potential of the corporate venturing initiative, as well as the synergies and learning opportunities between the parties. It can also create silos and isolation for the venture team, who may feel disconnected from the corporate core and culture. To avoid or overcome this pitfall, it is important to leverage the complementary strengths and resources of both the corporate and the venture, and to create mechanisms and platforms for knowledge sharing, cross-fertilization, and co-creation. It is also important to build trust and rapport between the corporate and the venture teams, and to celebrate and showcase their successes and achievements.

4. Lack of innovation in the corporate venturing model, process, and portfolio. This can result in a stale and ineffective corporate venturing initiative, that fails to generate novel and valuable outcomes, and to keep up with the dynamic and competitive innovation landscape. It can also create complacency and inertia for the corporate and the venture teams, who may stick to the same old ways of doing things and miss out on new opportunities and challenges. To avoid or overcome this pitfall, it is important to constantly experiment and iterate with different corporate venturing models, such as incubation, acceleration, corporate venture capital, or strategic partnerships. It is also important to adopt a lean and customer-centric approach to corporate venturing, and to diversify and balance the corporate venturing portfolio across different stages, sectors, and domains.

An example of a successful corporate venturing initiative that avoided or overcame these pitfalls and challenges is Google Ventures (GV), the venture capital arm of Google. GV invests in startups across various industries and stages, such as Uber, Slack, Stripe, and 23andMe. GV aligns its goals and incentives with the startups it backs, and provides them with autonomy, support, and access to Google's resources and expertise. GV also integrates its portfolio companies with Google's core businesses and culture, and fosters a culture of innovation and experimentation within its own organization. GV has generated significant financial returns and strategic value for Google, as well as for the startups and the society.

---

17.Overcoming Challenges in Implementing Agile in Corporate Venturing[Original Blog]

Overcoming Challenges

Overcoming Challenges to Implementing

Implementing agile

One of the main benefits of corporate venturing is the ability to innovate and create new value propositions for customers and stakeholders. However, innovation is not a linear process and often involves uncertainty, ambiguity, and complexity. To cope with these challenges, many corporate venturers adopt agile methodologies and frameworks, such as Scrum, Kanban, or Lean Startup, to manage and deliver their ventures. Agile approaches emphasize iterative and incremental development, customer feedback, collaboration, and adaptation. However, implementing agile in corporate venturing is not without its own challenges. In this section, we will discuss some of the common obstacles that corporate venturers face when adopting agile and how to overcome them. We will also provide some insights from different perspectives, such as the corporate parent, the venture team, and the external partners. Here are some of the challenges and possible solutions:

1. Aligning the corporate and venture goals: Corporate venturing is often driven by strategic objectives, such as exploring new markets, acquiring new capabilities, or creating new revenue streams. However, these goals may not always be compatible with the venture's goals, which are more focused on creating value for customers and validating assumptions. This can create tension and conflict between the corporate parent and the venture team, especially when it comes to resource allocation, performance measurement, and decision making. To overcome this challenge, it is important to establish a clear and shared vision and mission for the venture, as well as a set of key performance indicators (KPIs) that reflect both the corporate and venture goals. The corporate parent should also provide the venture team with enough autonomy and flexibility to pursue their own experiments and learnings, while still maintaining oversight and guidance. A possible way to achieve this balance is to use a dual-track approach, where the venture team works on both discovery and delivery activities, and regularly communicates their progress and insights to the corporate parent.

2. Building a cross-functional and collaborative team: Agile methodologies and frameworks require a high level of collaboration and communication among the team members, as well as with the customers and other stakeholders. However, corporate venturing often involves working with people from different backgrounds, cultures, and disciplines, which can pose challenges for building trust, rapport, and shared understanding. Moreover, corporate venturers may have to deal with competing priorities, conflicting agendas, and power dynamics within and outside the organization. To overcome this challenge, it is essential to build a cross-functional and diverse team that has the right mix of skills, knowledge, and experience to deliver the venture. The team should also have a clear and common goal, a shared language, and a set of values and norms that foster collaboration and respect. Additionally, the team should use various tools and techniques, such as co-creation workshops, user interviews, prototyping, and feedback sessions, to engage with the customers and other stakeholders and incorporate their input and feedback into the venture development process.

3. adapting to changing customer needs and market conditions: One of the core principles of agile is to embrace change and respond to customer feedback. However, corporate venturing often operates in dynamic and uncertain environments, where customer needs, preferences, and behaviors may change rapidly and unpredictably. Moreover, corporate venturers may face competition from existing or new entrants, regulatory changes, technological disruptions, or other external factors that may affect the viability and desirability of their venture. To overcome this challenge, it is crucial to adopt a lean and experimental mindset, where the team validates their assumptions and hypotheses through frequent and iterative testing and learning. The team should also use various sources of data and information, such as market research, customer feedback, analytics, and trends, to monitor and evaluate the performance and potential of their venture. Furthermore, the team should be ready and willing to pivot or perse pivot their venture based on the evidence and insights they gather, and to communicate and justify their changes to the corporate parent and other stakeholders.

When President Obama speaks about raising taxes on the rich, he speaks about high-income employees and small business owners, not entrepreneurs who build big businesses.

Robert Kiyosaki

---

18.How to manage the deal process, governance, and integration of your ventures?[Original Blog]

Corporate venture execution is the process of turning your venturing opportunities into successful ventures. It involves managing the deal process, governance, and integration of your ventures with your core business. These aspects are crucial for ensuring the alignment of your strategic objectives, the value creation of your ventures, and the mitigation of potential risks. In this section, we will discuss how to manage these aspects effectively and efficiently. We will also provide some insights from different perspectives, such as the corporate parent, the venture team, and the external partners.

Here are some steps that you can follow to manage your corporate venture execution:

1. Define the deal process and criteria. The deal process is the sequence of activities and decisions that lead to the formation and launch of your ventures. It includes activities such as screening, due diligence, valuation, negotiation, and closing. The deal criteria are the standards and metrics that you use to evaluate and select your ventures. They should reflect your strategic objectives, your risk appetite, and your expected returns. You should define the deal process and criteria clearly and communicate them to all the relevant stakeholders, such as the venture team, the business units, and the external partners. This will help you to streamline the process, avoid confusion, and ensure consistency.

2. Establish the governance structure and mechanisms. The governance structure and mechanisms are the ways that you monitor and control your ventures. They include aspects such as the roles and responsibilities of the venture team, the reporting and feedback channels, the performance indicators and targets, and the incentive and reward systems. You should establish the governance structure and mechanisms that suit your venturing objectives, your organizational culture, and your venture characteristics. For example, if you are pursuing more exploratory and disruptive ventures, you may want to adopt a more flexible and autonomous governance structure, while if you are pursuing more exploitative and incremental ventures, you may want to adopt a more rigid and hierarchical governance structure.

3. Plan and execute the integration of your ventures. The integration of your ventures is the process of aligning and connecting your ventures with your core business. It includes aspects such as the sharing of resources, capabilities, and knowledge, the coordination of activities and processes, and the creation of synergies and complementarities. You should plan and execute the integration of your ventures carefully and strategically, taking into account the degree of integration, the timing of integration, and the mode of integration. For example, if you are pursuing more radical and distant ventures, you may want to integrate them gradually and loosely, while if you are pursuing more incremental and related ventures, you may want to integrate them quickly and tightly.

Some examples of successful corporate venture execution are:

- Google Ventures (GV) is the venture capital arm of Google. It invests in startups across various sectors, such as health, consumer, enterprise, and frontier technology. GV has a well-defined deal process and criteria, which involve screening, due diligence, valuation, negotiation, and closing. GV also has a strong governance structure and mechanisms, which include a dedicated venture team, a regular reporting and feedback system, a clear performance measurement and evaluation system, and a competitive incentive and reward system. GV also plans and executes the integration of its ventures strategically, depending on the degree of fit and potential with Google's core business. For example, GV has integrated some of its ventures, such as Nest and Waze, into Google's hardware and maps divisions, respectively, while it has kept some of its ventures, such as Uber and Slack, independent and autonomous.

- Unilever Ventures (UV) is the venture capital arm of Unilever. It invests in startups in the areas of personal care, digital, and sustainability. UV has a clear deal process and criteria, which involve screening, due diligence, valuation, negotiation, and closing. UV also has a robust governance structure and mechanisms, which include a dedicated venture team, a regular reporting and feedback system, a transparent performance measurement and evaluation system, and a fair incentive and reward system. UV also plans and executes the integration of its ventures carefully, depending on the degree of fit and potential with Unilever's core business. For example, UV has integrated some of its ventures, such as Dollar Shave Club and Seventh Generation, into Unilever's personal care and home care divisions, respectively, while it has kept some of its ventures, such as Olaplex and Nutrafol, independent and autonomous.

---

19.Maximizing Value from Successful Ventures[Original Blog]

Successful Ventures

One of the most important aspects of corporate venturing is to plan and execute an effective exit strategy that maximizes the value of the successful ventures. An exit strategy is the way a corporate venture is terminated or transferred to another entity, such as an acquirer, a partner, or the public market. The exit strategy should align with the strategic objectives of the parent corporation, the venture team, and the external stakeholders. There are different types of exit strategies, each with its own advantages and disadvantages. In this section, we will discuss some of the common exit strategies and how to optimize them for the best outcomes.

Some of the common exit strategies are:

1. Acquisition: This is when a corporate venture is sold to another company, usually for a combination of cash and stock. This is one of the most popular and lucrative exit strategies, as it can generate a high return on investment and create synergies with the acquirer. However, it also involves a loss of control and autonomy for the venture team, and a potential clash of cultures and values with the new owner. To maximize the value of an acquisition, the corporate venture should have a clear value proposition, a strong competitive advantage, and a large and growing market. The parent corporation should also identify and negotiate with potential acquirers that share a strategic vision and have complementary assets and capabilities. An example of a successful acquisition is when Google bought YouTube for $1.65 billion in 2006, which enabled Google to dominate the online video market and leverage YouTube's user-generated content and advertising platform.

2. Spin-off: This is when a corporate venture is separated from the parent corporation and becomes an independent entity, usually through an initial public offering (IPO) or a management buyout (MBO). This is a way to unlock the value of the venture and give it more freedom and flexibility to pursue its own goals and strategies. However, it also involves a loss of support and resources from the parent corporation, and a higher risk and uncertainty for the venture team and the investors. To maximize the value of a spin-off, the corporate venture should have a strong financial performance, a clear growth strategy, and a loyal and engaged customer base. The parent corporation should also ensure a smooth transition and a good relationship with the spin-off, as well as retain some equity stake or strategic partnership. An example of a successful spin-off is when eBay spun off PayPal in 2015, which allowed PayPal to focus on its core payments business and expand into new markets and segments.

3. Licensing: This is when a corporate venture grants the right to use its technology, product, or service to another company, usually for a fee or a royalty. This is a way to generate revenue and profit from the venture without investing too much time and money in its development and marketing. However, it also involves a loss of exclusivity and differentiation for the venture, and a potential loss of quality and reputation if the licensee does not meet the standards and expectations of the venture. To maximize the value of a licensing, the corporate venture should have a unique and valuable technology, product, or service that can be easily replicated and scaled by the licensee. The parent corporation should also select and monitor the licensee carefully, and protect the intellectual property rights and the brand image of the venture. An example of a successful licensing is when Microsoft licensed its Windows operating system to IBM and other PC manufacturers in the 1980s and 1990s, which enabled Microsoft to dominate the software market and earn billions of dollars in royalties.

Maximizing Value from Successful Ventures - Corporate venturing portfolio: How to balance and optimize the portfolio of corporate ventures

---

20.Adaptation and Course Correction[Original Blog]

Adaptation and course correction is the sixth and final stage of the corporate venturing lifecycle, where the venture is evaluated and adjusted based on the feedback and results from the previous stages. This stage is crucial for ensuring the long-term success and sustainability of the venture, as well as the alignment with the corporate strategy and goals. Adaptation and course correction involves the following steps:

1. Review and measure the performance of the venture. This step involves collecting and analyzing data on the key performance indicators (KPIs) of the venture, such as revenue, growth, customer satisfaction, market share, profitability, etc. The data should be compared with the initial assumptions and expectations, as well as the benchmarks and best practices in the industry. The review and measurement should be done periodically and systematically, using tools such as dashboards, reports, surveys, etc.

2. Identify and prioritize the gaps and opportunities for improvement. Based on the performance review, the venture team should identify the areas where the venture is underperforming or facing challenges, as well as the areas where the venture has potential to grow or innovate further. The gaps and opportunities should be prioritized based on their impact, urgency, and feasibility, using tools such as SWOT analysis, gap analysis, opportunity matrix, etc.

3. Implement and test the changes and solutions. Based on the prioritized gaps and opportunities, the venture team should design and execute the changes and solutions that can address the issues or enhance the value proposition of the venture. The changes and solutions can range from minor tweaks to major pivots, depending on the nature and magnitude of the problem or opportunity. The changes and solutions should be tested and validated with the customers, partners, and stakeholders, using tools such as experiments, prototypes, pilots, etc.

4. Learn and iterate. Based on the results and feedback from the implementation and testing, the venture team should learn from the successes and failures, and iterate on the changes and solutions until they achieve the desired outcomes and objectives. The learning and iteration should be done in a fast and agile manner, using tools such as feedback loops, learning cycles, agile methods, etc.

An example of a successful adaptation and course correction is the case of Netflix, which started as a DVD rental service and later pivoted to a streaming platform. Netflix constantly reviewed and measured its performance, identified and prioritized the gaps and opportunities, implemented and tested the changes and solutions, and learned and iterated on its business model, product, and market. As a result, Netflix was able to survive and thrive in the changing and competitive media industry, and became one of the leading and most innovative companies in the world.

Adaptation and Course Correction - Corporate venturing stages: How to manage the different stages of your venturing lifecycle

---

21.Managing Risk and Performance in Corporate Venturing[Original Blog]

One of the key challenges of corporate venturing is how to manage the risk and performance of the ventures, both internally and externally. Corporate venturing involves investing in or partnering with external startups, creating new businesses within the corporation, or spinning off existing units as independent entities. Each of these modes of venturing has its own benefits and drawbacks, and requires different approaches to governance, evaluation, and alignment. In this section, we will explore some of the best practices and frameworks for managing risk and performance in corporate venturing, from different perspectives such as the parent company, the venture team, and the external stakeholders. We will also provide some examples of how successful companies have implemented these practices and frameworks in their corporate venturing activities.

Some of the topics that we will cover in this section are:

1. How to define and measure the objectives and outcomes of corporate venturing, both financial and non-financial, and how to align them with the corporate strategy and vision.

2. How to design and implement a portfolio approach to corporate venturing, and how to balance the risk and return of different types of ventures, such as exploratory, exploitative, or hybrid.

3. How to establish and maintain a clear and consistent governance structure and process for corporate venturing, and how to assign roles and responsibilities, decision rights, and accountability mechanisms for the parent company and the venture team.

4. How to foster a culture of innovation and entrepreneurship within the corporation and the venture team, and how to overcome the barriers and tensions that may arise between the corporate and the venture cultures, such as bureaucracy, risk aversion, or resource allocation.

5. How to leverage the synergies and complementarities between the parent company and the venture, and how to manage the potential conflicts and trade-offs, such as cannibalization, competition, or integration.

6. How to communicate and collaborate with the external stakeholders of the venture, such as customers, suppliers, partners, investors, regulators, or competitors, and how to manage their expectations and interests, as well as the reputation and legitimacy of the venture and the parent company.

An example of a company that has successfully managed risk and performance in corporate venturing is Google. Google has created a separate entity called Google Ventures (GV), which is an independent venture capital arm that invests in startups across various sectors and stages. GV operates autonomously from Google, and has its own investment criteria, processes, and team. GV also provides operational support and strategic guidance to its portfolio companies, leveraging Google's expertise, resources, and network. GV's objective is to generate financial returns, as well as to support Google's long-term vision and innovation. GV has invested in more than 500 companies, including some of the most successful and disruptive startups in the world, such as Uber, Slack, Stripe, Airbnb, and 23andMe. GV has also helped Google to acquire some of its portfolio companies, such as Nest, Waze, and Fitbit, and to integrate them into Google's ecosystem. GV has demonstrated how corporate venturing can create value for both the parent company and the venture, while managing the risk and performance effectively.

---

22.The Benefits of Applying Agile Frameworks in Corporate Venturing[Original Blog]

Benefits to applying

One of the main challenges of corporate venturing is to balance the need for speed, flexibility, and innovation with the requirements of stability, efficiency, and governance. Agile frameworks, such as Scrum, Kanban, or Lean Startup, can help corporate venturers to achieve this balance by providing a set of principles and practices that enable them to deliver value to customers and stakeholders in an iterative and adaptive way. In this section, we will explore some of the benefits of applying agile frameworks in corporate venturing, from different perspectives: the corporate parent, the venture team, and the external ecosystem.

Some of the benefits of applying agile frameworks in corporate venturing are:

1. Faster and more frequent feedback loops. Agile frameworks emphasize the importance of delivering working products or prototypes to customers and users as early and often as possible, and collecting feedback to validate assumptions and learn from experiments. This allows corporate venturers to test their ideas and hypotheses quickly, and to pivot or persevere based on the evidence. For example, a venture team can use the lean Startup approach to build a minimum viable product (MVP) and measure its impact on key metrics, such as customer acquisition, retention, or revenue. This way, they can avoid wasting time and resources on building features or solutions that nobody wants or needs.

2. More collaboration and alignment. Agile frameworks foster a culture of collaboration and alignment among the corporate parent, the venture team, and the external ecosystem. By involving the relevant stakeholders in the planning, execution, and review of the venture activities, agile frameworks ensure that everyone is on the same page and has a shared understanding of the vision, goals, and progress of the venture. For example, a venture team can use Scrum to organize their work into short iterations (sprints) and to hold regular meetings (such as daily stand-ups, sprint reviews, and retrospectives) to communicate, coordinate, and improve their performance. This way, they can keep the corporate parent and other partners informed and engaged, and solicit their feedback and support.

3. More autonomy and empowerment. Agile frameworks empower corporate venturers to make decisions and take actions that are best suited for their context and situation, without being constrained by rigid processes or bureaucracy. By giving the venture team the authority and responsibility to manage their own work, agile frameworks enable them to be more creative, innovative, and responsive to the changing market and customer needs. For example, a venture team can use Kanban to visualize their workflow and to limit their work in progress (WIP) according to their capacity and priorities. This way, they can optimize their efficiency and quality, and deliver value to customers faster and more reliably.

The Benefits of Applying Agile Frameworks in Corporate Venturing - Corporate venturing agile: How to use the agile methodologies and frameworks to manage and deliver your ventures

---

23.How to become a more agile and responsive corporate venturer in the 21st century?[Original Blog]

The 21st century is a time of rapid change, uncertainty, and disruption. Corporate venturing, the practice of creating or investing in new ventures by established firms, is a powerful way to explore new markets, technologies, and business models. However, corporate venturing also faces many challenges, such as aligning with the core business, managing the portfolio, and scaling the ventures. How can corporate venturers become more agile and responsive to the changing needs and opportunities in their venturing context? In this section, we will discuss some insights and recommendations from different perspectives, such as the corporate parent, the venture team, and the external ecosystem. We will also provide some examples of how some leading corporate venturers have implemented these practices.

Some of the key practices to become a more agile and responsive corporate venturer are:

1. Adopt a lean and iterative approach to venture development. Rather than following a linear and rigid process, corporate venturers should embrace a lean and iterative approach, where they test and validate their assumptions, learn from feedback, and pivot or persevere based on the results. This allows them to reduce uncertainty, avoid wasting resources, and adapt to the market needs. For example, Google X, the innovation lab of Google, uses a process called rapid evaluation to quickly assess the feasibility, desirability, and viability of new ideas, and kill the ones that do not meet the criteria.

2. Empower the venture team with autonomy and accountability. Corporate venturers should give the venture team the freedom and flexibility to make decisions, experiment, and learn, without excessive interference or bureaucracy from the corporate parent. At the same time, they should also hold the team accountable for the outcomes, and provide clear and consistent metrics and incentives to align them with the corporate goals. For example, Amazon, the e-commerce giant, follows a principle called two-pizza teams, where each venture team is small enough to be fed by two pizzas, and has the authority and responsibility to deliver a specific customer value proposition.

3. Leverage the corporate assets and capabilities. Corporate venturers should not ignore or isolate themselves from the corporate parent, but rather leverage the assets and capabilities that the parent can offer, such as brand, customer base, distribution channels, technology, and expertise. This can help them gain a competitive edge, accelerate their growth, and create synergies with the core business. For example, Starbucks, the coffee chain, leverages its global network of stores, loyal customers, and digital platform to launch and scale new ventures, such as Teavana, a premium tea brand, and Starbucks Reserve, a high-end coffee experience.

4. Engage with the external ecosystem. Corporate venturers should not operate in a vacuum, but rather engage with the external ecosystem, such as startups, universities, accelerators, investors, and customers. This can help them access new ideas, talent, partners, and feedback, and also learn from the best practices and trends in the industry. For example, BMW, the car manufacturer, collaborates with various external stakeholders, such as Techstars, a startup accelerator, UnternehmerTUM, a university innovation center, and BMW i Ventures, a corporate venture capital fund, to foster innovation and entrepreneurship in the mobility sector.

---

24.Ensuring Flexibility and Adaptability in Ventures[Original Blog]

Flexibility and Adaptability

One of the key challenges of corporate venturing is to manage and deliver ventures that are aligned with the strategic goals and vision of the parent organization, while also being responsive to the changing market conditions and customer needs. This requires a high degree of flexibility and adaptability in the venture teams, as well as a clear and effective communication and collaboration between the corporate and venture stakeholders. Agile project management is a set of principles and practices that can help achieve these objectives by enabling faster feedback, iterative development, and continuous improvement. In this section, we will explore how agile project management can be applied to corporate venturing, and what are the benefits and challenges of doing so. We will also discuss some of the best practices and frameworks that can help implement agile project management in corporate venturing.

Some of the main advantages of using agile project management in corporate venturing are:

1. Faster validation and learning: Agile project management allows the venture teams to test their assumptions and hypotheses quickly and frequently, by delivering small increments of value to the customers and stakeholders. This enables them to learn from the feedback and data, and adjust their plans and priorities accordingly. For example, a venture team can use the Lean Startup methodology to build a minimum viable product (MVP) that solves a specific customer problem, and measure its impact and viability using key performance indicators (KPIs). This way, they can validate or invalidate their value proposition and business model, and pivot or persevere based on the results.

2. Higher customer satisfaction and loyalty: Agile project management puts the customer at the center of the development process, by involving them in the definition and prioritization of the requirements, and delivering solutions that meet their needs and expectations. This leads to higher customer satisfaction and loyalty, as well as increased word-of-mouth and referrals. For example, a venture team can use the Scrum framework to deliver potentially shippable increments (PSIs) of the product or service every sprint (a fixed time-box of one to four weeks), and get feedback from the customer and stakeholders in the sprint review meeting. This way, they can ensure that they are building the right thing, and that they are meeting the quality standards and acceptance criteria.

3. Improved collaboration and alignment: Agile project management fosters a culture of collaboration and alignment among the venture team members, as well as between the venture and the corporate. This is achieved by promoting transparency, trust, and empowerment, and by establishing clear roles and responsibilities, and shared goals and values. For example, a venture team can use the Kanban method to visualize their workflow and progress using a Kanban board, and limit the amount of work in progress (WIP) to avoid bottlenecks and waste. This way, they can optimize their efficiency and effectiveness, and identify and resolve any issues or impediments in the daily stand-up meeting. Moreover, the venture team can use the OKR (Objectives and Key Results) framework to align their objectives and key results with the strategic goals and vision of the corporate, and track and communicate their performance and outcomes using metrics and dashboards. This way, they can demonstrate their value and impact, and gain the support and buy-in of the corporate.

Ensuring Flexibility and Adaptability in Ventures - Corporate venturing agile: How to use the agile methodologies and frameworks to manage and deliver your ventures

---

25.Iterating Ventures Based on Customer Feedback[Original Blog]

Based on customer feedback

One of the key aspects of corporate venturing is to continuously improve the ventures based on customer feedback. Customer feedback is the information that customers provide about their experience, satisfaction, and expectations with a product or service. It can help the venture team to identify the strengths and weaknesses of their value proposition, validate their assumptions, and discover new opportunities for innovation. In this section, we will discuss how to collect, analyze, and act on customer feedback in order to iterate the ventures and increase their chances of success. We will also provide some insights from different perspectives, such as the customer, the venture team, and the corporate sponsor. Here are some steps to follow for continuous improvement based on customer feedback:

1. Define the goals and metrics of customer feedback. Before collecting any feedback, it is important to have a clear idea of what you want to learn from your customers and how you will measure their responses. For example, you may want to test the problem-solution fit, the product-market fit, or the business model viability of your venture. You may also want to track some key performance indicators (KPIs), such as customer satisfaction, retention, loyalty, or advocacy. Having specific goals and metrics will help you to design the feedback process, select the appropriate methods and tools, and interpret the results.

2. Collect customer feedback using various methods and sources. There are many ways to gather feedback from your customers, depending on your goals, resources, and stage of development. Some of the common methods are surveys, interviews, focus groups, usability tests, observation, feedback forms, reviews, ratings, comments, social media, analytics, etc. You can use a combination of these methods to get a comprehensive and balanced view of your customers' opinions and behaviors. You should also try to collect feedback from different sources, such as existing customers, potential customers, lost customers, competitors' customers, etc. This will help you to understand the needs and preferences of different segments and personas of your target market.

3. analyze customer feedback using qualitative and quantitative techniques. Once you have collected enough feedback, you need to analyze it to extract meaningful and actionable insights. You can use qualitative techniques, such as coding, categorizing, clustering, or thematic analysis, to identify the main themes, patterns, and trends in the feedback. You can also use quantitative techniques, such as descriptive statistics, inferential statistics, or data visualization, to measure the frequency, distribution, correlation, or significance of the feedback. You should also try to triangulate the feedback from different methods and sources to validate and enrich your findings.

4. Act on customer feedback by implementing changes and testing outcomes. The final step is to use the insights from the feedback analysis to improve your venture. You can implement changes in your product or service features, design, pricing, distribution, marketing, etc. Based on the feedback. You should also test the outcomes of these changes by measuring their impact on your goals and metrics. You can use methods such as A/B testing, experiments, or pilots to compare the performance of different versions or alternatives of your venture. You should also collect more feedback from your customers to evaluate their reactions and satisfaction with the changes.

5. Repeat the feedback loop until you achieve your desired results. Customer feedback is not a one-time activity, but a continuous process of learning and improvement. You should keep collecting, analyzing, and acting on customer feedback until you reach your objectives, such as achieving product-market fit, scaling your venture, or generating revenue. You should also be open to new feedback and changes, as customer needs and preferences may evolve over time. By iterating your venture based on customer feedback, you can increase your chances of creating value for your customers and your organization.

Some examples of how continuous improvement based on customer feedback can benefit different stakeholders are:

- For the customer, it can enhance their experience, satisfaction, and loyalty with the venture, as they feel heard, valued, and involved in the development process. It can also increase their trust and confidence in the venture, as they see that their feedback is taken seriously and acted upon. It can also provide them with a better solution to their problem or need, as the venture adapts to their preferences and expectations.

- For the venture team, it can reduce the risk of failure, as they can validate their assumptions and hypotheses with real data and evidence. It can also increase their efficiency and effectiveness, as they can focus on the most important and impactful features and aspects of the venture. It can also foster their creativity and innovation, as they can discover new opportunities and ideas from the feedback. It can also improve their communication and collaboration, as they can share and discuss the feedback with each other and with other stakeholders.

- For the corporate sponsor, it can increase the return on investment, as they can optimize the resources and costs of the venture. It can also increase the strategic alignment, as they can ensure that the venture is aligned with the corporate vision, mission, and goals. It can also increase the competitive advantage, as they can differentiate the venture from the competitors and create a loyal customer base. It can also increase the reputation and brand image, as they can demonstrate their commitment to customer satisfaction and innovation.

---