What is the current state of corporate venture capital? What new approaches are being taken to corporate venture capital? What makes the perfect pitch? These are all questions the participants will be asking at the CVC conference, which DMEXCO 2019 is organizing on 11 September. Corporate venture capital representatives are invited to participate in this half-day conference format. The limited number of visitors and the clear focus on start-up investments by large companies contribute not only to strengthening the informative aspect of the conference, but also to promoting inspiration and networking.
In cooperation with VentureCapital magazine, DMEXCO will be offering CVC representatives the opportunity to engage in active exchange among themselves, and with over 150 start-ups from Germany and around the world on 11 September. Visitors to the CVC conference can look forward to a tailor-made program in an exclusive setting, access to the two-day DMEXCO, the trade fair for digital marketing, and can also join the DMEXCO Party! Get your tickets now!
Both sides stand to benefit
Corporate venture capital investment is exceedingly important to the start-up scene. In 2018 alone, European start-ups collected around 5.5 billion US dollars from corporate investment firms. New products and innovative solutions are often not invented in large corporations, but developed by start-ups with extensive know-how in their specialized fields. What could be more natural than joining forces? The investor benefits by gaining access to knowledge or products, while the young company minimizes its risk and can stabilize its business model. It’s a real win-win situation. But just as not every investor is suitable for every start-up, not every business model is suitable for strategic investment. In these sectors, on the other hand, investors have a good chance of engaging in profitable partnerships.
The media revolution – new solutions are being sought
The most important driver of innovation in the media is undoubtedly digitalization. The media industry, and especially the print sector, has been in a state of upheaval for several years now. Accordingly, companies in this sector are particularly active in terms of corporate venture capital. More or less all the DAX and MDAX companies in the sector have established corresponding units or subsidiaries. Those who do not expand their digital portfolios and test new business models will not be able to hold their own in the current environment. This increases the pressure to innovate. After all, it is vital to identify new trends at an early stage and integrate them into existing business models in a sustainable way. What video was in the past is now podcasts and may be IGTV in the future. Strategic investors can therefore find a lot of investment potential, but also have to weather intensive competition.
Banking on the move – the financial sector is facing big challenges
The financial sector is also being turned on its head by digitalization. FinTechs like Klarna are making payment easier and money can be sent around the world with just a few clicks using PayPal. Faced with these new competitors, the old established corporations have to hold their own, and are thus increasingly under pressure to take action.
Innovative technologies offer a lot of potential in this regard. Customers are increasingly expecting to be able to make cashless payments via smart phone or to check their accounts using a mobile banking app while on the go. Financial service providers also face major challenges within their own companies, like the need to streamline their IT infrastructure. Making a strategic investment in the right start-up can be a real competitive advantage here.
Automotive industry – for new mobility needs
There is currently a lot of commotion among car manufacturers. While the classic combustion engine was the undisputed master of mobility for almost a century, this paradigm is increasingly coming under pressure. Be it batteries or fuel cells, alternative drives will have to be developed in the future. The lack of innovation in the last few decades is necessitating CVC investment, because only by working together can corporations gain access to innovative technologies and start-ups make a difference in the industry.
However, digitalization is playing a big role here as well. Not only the type of drive is changing, but people’s mobility needs are also in a constant state of transition. Car sharing is already a reality in big cities, but self-driving vehicle technology is still in its infancy. Both of these innovations offer a lot of potential. The same applies to the digital networking of vehicles, for example to avoid traffic jams or to automatically make an emergency call after a traffic accident.
Trade & logistics – reaching the destination by robot
The e-commerce market grew by 11.4 percent in 2018 and the logistics industry has to keep pace. Big data is one of the key terms in this context, as it helps predict the number of orders, for example. At the same time, more and more robots are performing logistical tasks. They look for the goods in the warehouse or pack them, and the first pilot projects are testing self-propelled delivery robots and drones.
In addition to this, the Internet of Things has the potential to revolutionize commerce. For example, the global networking of freight ships by means of block chains could soon make transport documents superfluous and thus save up to a fifth of transport costs. Corporate partnerships and CVC investments can efficiently drive this change.
The bottom line
The conditions couldn’t be better: while start-ups are presenting themselves in the DMEXCO Future Park, the representatives of corporate venture capital will be meeting next door. Within the framework of the exchange, they will also be discussing new paths. Many industries that are currently in a state of upheaval are looking for new business models and solutions. Gaining inspiration and networking are two good ways to start.