The Future of Corporate Venturing - 2003

During the height of the dot-com boom, many large firms turned to corporate venturing as a way of promoting innovation, creating a window on new technologies, retaining entrepreneurially minded employees and spurring growth. Now, four years later, corporate venture investment levels have fallen by 75%. Research indicates that the biggest mistake companies made was setting up venturing units with mixed objectives and mixed-up business models. However, companies that pursued a single objective with an appropriately designed venturing model were more successful. Analysis of nearly 100 venturing units identified five main objectives that drive the decision to set up a venturing unit. Although one common objective was found to have no successful business model, the other four objectives and their associated business models demonstrated reasonable to high degrees of success: 1. ecosystem venturing, 2. innovation venturing, 3. harvest venturing, and 4. private equity venturing.

Campbell, A., Birkinshaw, J., Morrison, A. & van Basten Batenburg, R. (2003) The Future of Corporate Venturing, MIT Sloan Management Review, Vol. 45, No. 1