Corporate venturing: A strategy for future business success

Big corporations have a lot going for them. But, when it comes to trying out fresh ideas or breaking into new markets, they can get a little... slow.  They tend to spend a lot of money, and take quite some time to get things right. This lack of speed and efficiency started to cost them their competitive edge. That’s why corporate venturing is becoming the go-to strategy to help them adapt, compete, and stay ahead.

‍What is corporate venture building?

Corporate venture building is a model where corporations partner with or invest in startups with the goal of creating new companies and products. The idea? To spark growth and bring in more revenue. And yes, they’re taking some calculated risks to dive into new markets or create the next big thing. But, that’s the whole point. It’s how these corporations stay competitive, roll with market changes, and set themselves up for long-term success.

What are the benefits of corporate venture building?

As we’ve mentioned earlier, corporate venture building brings some serious perks for companies aiming to innovate and grow. So, let’s take a closer look at why this approach is such a game-changer and why it’s becoming a go-to strategy for companies looking to stay ahead.

1. Speed to market‍

Corporate venture building speeds up getting new ideas off the ground. By testing and building multiple ventures at once, companies can quickly spot what works and focus their efforts there. This fast-track approach helps turn ideas into action much quicker, giving businesses a real edge over the competition.

2. Risk reduction

One of the biggest perks of corporate venture building is that it cuts down on risk. While only a small percentage of companies have the means to test several ideas at once, those that do can experiment in real-world conditions and find out which ideas stick. It’s a win-win, combining the speed and agility of startups with the resources and experience of a big company, minimizing the chance of failure.

3. Smarter use of resources‍

Corporate venture building also ensures companies use their resources efficiently. Instead of throwing tons of money at a product before it’s proven, they test the waters first. Once a product shows promise, the company can leverage its existing structure to scale it quickly and sustainably, maximizing its strengths without unnecessary spending. 3. Smarter use of resources

4. Access to expertise and networks

Venture builders bring a wealth of knowledge, experience, and connections to the table. They’re the experts who help both startups and corporations navigate the complex process of launching new ventures. Their role is to accelerate growth, reduce risk, and provide the support needed to get a new business off the ground successfully.

An example of a corporate venture: Cito

One example of how intrapreneurship is important for established corporations is Cito - a venture we co-launched this with Volkswagen.

Cito was Volkswagen’s first B2B digital courier service, designed to provide a fast, agile, and reliable way to connect customers directly with nearby logistics partners. The goal was to streamline the entire process with quick service, clear pricing, and full automation of paperwork and planning, making the courier experience seamless and efficient for businesses.

We kickstarted the business by testing a low-code version in the market. We gathered real insights and traction so we could refine the main product, embodying our "Fake it until you make it" approach. Using low-code meant testing the product manually, which allowed us to work with real data in a live market to validate our ideas, set clear hypotheses, and plan the next steps before fully building the product.

What we achieved:

• Time savings: Over 7,500 hours saved for customers, reducing transport request times from 30 minutes to just 2 minutes per transaction.
• Partner growth: A 20% monthly growth rate since launch, with over 500 qualified transport partners and 20,000 deliveries completed.
• Revenue milestones: Cito generated 7-figure revenues within one year, underscoring its rapid market penetration and scalability.
• Investment: Secured 8-figure investments from major corporate partners, reinforcing confidence in the venture’s growth trajectory.

‍Conclusion

Corporate venture building is a smart and flexible way for companies to stay competitive in today’s market. By teaming up with startups or launching their own ventures, corporations move faster, reduce risks, and explore new ideas without the usual heavy costs. It basically blends the best of both worlds—the creativity and speed of startups with the experience and resources of big businesses.

Cito is a good example of that - it shows just how powerful corporate venturing can be, how it can help companies innovate, save time, and grow rapidly. So it is no longer just an ‘option’ for any business looking to stay ahead —it’s becoming essential for companies that want to evolve, tap into new markets, and make sure the company is ready for whatever comes next.

All in all, corporate venturing gives businesses the tools to try out new ideas, manage risks, and get more revenue.