CBS-forsker styrker samarbejdet mellem virksomheder og startups

In recent years, equity-based collaborations between large companies and startups, also known as Corporate Venture Capital (CVC), have increased significantly. According to CB Insights, CVC-backed funding around the globe increased from 70.1 billion dollars in 2020 to 169.3 billion dollars in 2021 (142% increase), and they recorded an all-time high in investment levels as well as in the number of newly established CVC units (221). These results reflect the fact that business leaders believe strongly in strategic corporate-startup collaborations as a means of achieving technological development and reaching market goals.

“Large companies have the technological and productive assets, the market expertise, the financial resources and the business networks. Complementarily, startups bring innovation, new ideas and the ability to challenge the status quo in their industry. When these two worlds meet, a powerful and dynamic collaboration that combines the best of both can emerge: the startups' innovative ideas and the established companies' experience, assets and reach,” says Associate Professor at CBS, Francesco Di Lorenzo.

He recently published an extensive report where he collected data on Corporate Venturing strategies and activities from leading Nordic companies in order to obtain a detailed understanding of how they find, structure, lead, achieve success in and evaluate their collaborations with startups, specifically  focusing on Corporate Venture Capital.

Great potential for medium-sized companies

One such successful collaboration is the partnership between the Danish startup Onomondo and Maersk. Maersk's investment in Onomondo not only provided financial support, it also significantly improved the startup's market legitimacy and customer base. This example highlights the potential benefits of well-structured corporate-startup collaborations.

For several years, Francesco Di Lorenzo has engaged with large companies such as Maersk, Nordea and Danfoss to learn more about how companies invest in and collaborate with startups.

The report, which is based on data from 32 Nordic companies (60% of which are Danish), examines Corporate Venture Capital and highlights the structure of collaborations between large companies and startups. It reveals the level of investment and ownership companies achieve in each startup as well as the exchange of resources and the companies’ key figures,” Francesco Di Lorenzo explains.

The report also shows that 40% of Danish companies co-invest with other companies; a number that is significantly higher than the global average of approximately 10%. This points to a growing interest in Corporate Venturing activities in Denmark.

Although there are obvious benefits to collaborations between established companies and startups, success is not always a given. Synergy does not occur out of nowhere; it must be identified and cultivated in order for all parties to grow, and here, the experiences of other companies are crucial, Francesco Di Lorenzo points out.

“To make the most of these collaborations, it can be advantageous to look at what others have done. There are success stories out there. A well-defined and long-term plan for the collaboration is important, and it is necessary to be clear about why you want to enter into the partnership. Is it to develop new products, to capture a new target audience, or to solve a specific technological challenge?”

Di Lorenzo believes that more large and medium-sized Danish companies should consider new long-term and strategic collaborations with dynamic entrepreneurial companies. “It can create new value for the companies and simultaneously enhance the overall innovation and entrepreneurial ecosystem in Denmark.”

CBS hosts platform for knowledge sharing

The report, published in collaboration with TechBBQ, was just the beginning. In April 2024, Francesco Di Lorenzo hosted a major event at CBS, sponsored by the Department of Strategy and Innovation, where insights from the survey were shared with the Danish business community and experts discussed the challenges and opportunities of corporate-startup collaborations. 

Here, representatives from the Danish business community had the opportunity to delve into corporate-startup collaborations and gain insights into various approaches and strategies used by leading companies in Denmark and the Nordic region.

“The purpose of the survey is not merely to collect and analyse data, but also to create a platform where companies can meet and exchange experiences,” Francesco Di Lorenzo explains. 

“It [the event where the survey results were launched] felt like reaching the end of a process, but actually, it is only the beginning. It is indeed the starting point of a very ambitious project, which I hope to carry out over the next few years: creating a Scandinavian community, around the topic of corporate-startup collaborations”

Three good tips for companies looking to invest in startups

1. Focus on building a productive collaborative deal beyond the investment agreement.
2. Reflect on how the collaborations add value to the primary corporate growth goals and core business areas.
3. Build solid internal corporate governance to align all the relevant organisational units affected by the collaborations with startups.