1.
AACHEN
7. JULI 2017
WHY & HOW
CORPORATIONS
ENGAGE WITH
STARTUPS
AND SOMETIMES VICE VERSA

2.
MORE
VIDARANDERSEN.COM
VIDAR ANDERSEN
• STARTUP FOUNDER
• EDUCATOR
• INNOVATION ADVISOR
FOUNDING PRINCIPAL
+ANDERSEN & ASSOCIATES

3.
+ANDERSEN
& ASSOCIATES
INNOVATION & GROWTH
THROUGH
SCIENCE + ENTREPRENEURSHIP
CONTACT
YOU@PLUSANDERSEN.COM

4.
THERE IS A DEFINITION
WHAT THE
HECK IS A
STARTUP
ANYWAY?

5.
CORPORATION
PERMANENT FORM OF
ORGANISATION DESIGNED
TO EXECUTE A PROVEN
REPEATABLE & SCALABLE
BUSINESS MODEL IN A
PREDICTABLE AND STABLE
ENVIRONMENT

6.
STARTUP
A TEMPORARY FORM OF
ORGANISATION IN
SEARCH OF A SCALABLE
& REPEATABLE BUSINESS
MODEL OPERATING IN
AN ENVIRONMENT OF
EXTREME UNCERTAINTY

7.
AN ALTERNATE DEFINITION
WHAT THE
HECK IS
DIGITALISATION
ANYWAY?

8.
DATA BECOMES THE PRODUCT
DIGITALISATION IS
INFORMATION
ENABLING

9.
XL IS NOT ENABLING
EXPONENTIAL GROWTH
NOT
THIS

10.
DATA ENABLING
EXPONENTIAL GROWTH
THIS

11.
DATA ENABLING
EXPONENTIAL GROWTH
NEW MARKETS
THIS

12.
MANIPULATING DATA
EXPONENTIAL GROWTH
THIS
“The program, called COIN, for Contract
Intelligence, does the mind-numbing job of
interpreting commercial-loan agreements
that, until the project went online in June,
consumed 360,000 hours of lawyers’ time
annually. The software reviews documents in
seconds, is less error-prone and never asks for
vacation.” -JP Morgan

13.
INFORMATION (DATA)
ENABLES EXPONENTIAL GROWTH
ENABLING
EXPONENTIAL
GROWTH

14.
Information-enable
products and capture
data digitally
(preferably where
nobody else is
already doing it)
Process and
manipulate digital
data, add value
Save costs & time,
find new business
opportunities, scale,
profit
Build - Measure - Learn,
rinse, lather, repeat
IT
NEVER
STOPS

15.
THE TIMES HAVE CHANGED
WHY ALL
THIS STARTUP
HYPE NOW?

16.
EXPONENTIAL
TECHNOLOGY DEVELOPMENT

17.
SHORTER
LIFESPAN FOR CORPORATIONS

18.
YOUR COMPETITION
NO LONGER PEERS OR NEAR-PEERS
THE
AMOUNT OF
VENTURE
CAPITAL
AVAILABLE
TO
STARTUPS
HAVE
NEVER BEEN
BIGGER

19.
AUTOMATION
AFFECTING MOST VERTICALS

20.
MACHINES
LEARNING BY THEMSELVES

21.
VALUATIONS
RAPIDLY INCREASING

22.
CORPORATIONS
SLOW & RIGID + COMPLIANT

23.
STARTUPS
FAST & AGILE + BREAKS THE LAW

24.
LEAN METHOD
HAS COME FULL CIRCLE
2013
2011
THE
LEAN
STARTUP
1940s
AGILE & KANBAN
2005
LEAN ENTERPRISE
2014

25.
OPTIMISING THE OLD
ONLY TAKES YOU SO FAR
INNOVATION
IS THE KEY
TO GROWTH

26.
“The electric light did not come
from the continuous improvement
of candles”
- OREN HARARI
PROF, UNIVERSITY OF SF

27.
THE VERY VEHICLE
FOR INNOVATION & GROWTH
STARTUP
EQUALS
GROWTH

28.
Uber, the world’s largest taxi company,
owns no vehicles.
Facebook, the world’s most popular media owner,
creates no content.
Alibaba, the most valuable retailer,
has no inventory.
Airbnb, the world’s largest accommodation provider,
owns no real estate.
Spotify, the world’s most popular music service,
owns no music rights.
- TOM GOODWIN
SVP HAVAS MEDIA

29.
THE FACTS VS THE MYTHS
SPEEDBOAT
VS
FREIGHTER

30.
10 FACTS
CORPORATIONS DO GET IT
1
Traditional Venture Capital is no longer the
only way to raise money for startups.
DocuSign raised in the same round (Series E)
exclusively from the following corporations:
SalesForce, Google, Recruit, Mitsui & Co, BBVA,
NTT DoCoMo, Telstra and MKI.

31.
10 FACTS
CORPORATIONS DO GET IT
2
The majority (61.7%) of the unicorns
mentioned by the Wall-Street Journal under
The Billion Dollar Startups Club have raised
from at least one corporate.
Not including investment firms and banks.

32.
10 FACTS
CORPORATIONS DO GET IT
3
Corporations do not invest only in their
own vertical:
The online music streaming service Spotify
raised money from Coca-Cola.

33.
10 FACTS
CORPORATIONS DO GET IT
4
In-house R&D is giving way to collaboration
with new ventures.
9 out of the 10 biggest R&D spenders worldwide
are already working with startups.

34.
10 FACTS
CORPORATIONS DO GET IT
5
Not only silicon valley tech companies like
Google, but some of the traditional corporate
players have explicit ways to invest in
startups on a large scale.
Ping An Insurance Group has a venture arm:
Ping An Ventures.

35.
10 FACTS
CORPORATIONS DO GET IT
6
When it comes to collaboration with startups,
France (not USA) has the highest percentage
of its top corporations engaging startups:
23 out of 25 top corporations are working
with startups.

36.
10 FACTS
CORPORATIONS DO GET IT
7
Investing in startups is not the only way to
collaborate.
ProSieben Sat1 Media AG provides advertising
time in return for revenues or equity shares
through its venture arm (Seven Ventures).

37.
10 FACTS
CORPORATIONS DO GET IT
8
Building accelerators, a popular way to help
startups, is now done by “non-tech"
corporations too.
Diageo has an accelerator to create new
spirits brands: Distill Ventures.

38.
10 FACTS
CORPORATIONS DO GET IT
9
Working alone with startups is not the only
option: global corporations do it together as
well.
The Ecomobility Ventures investment fund has
been created by 5 corporations(Air Liquide,
Michelin, Orange, SNCF and Total).

39.
10 FACTS
CORPORATIONS DO GET IT
10 68% of the top 100 companies from the
Forbes Global 500 are engaging with startups.

40.
& STARTUPS
WITH CORPORATIONS
WHY DO
CORPORATES
ENGAGE
WITH
STARTUPS?

41.
SHIFT
HAPPENS
“SCREWED IF YOU DON’T”
REALITY CHECK

42.
REMEMBER THIS THING?
NEITHER DOES THE WORLD

43.
FAST SLOW
VS

44.
"In the new world, it is not
the big fish which eats the
small fish, it's the fast fish
which eats the slow fish."
- KLAUS SCHWAB
WORLD ECONOMIC FORUM

45.
VS

46.
"If you don't create the things
that will kill Facebook,
someone else will."
- MARK ZUCKERBERG
FOUNDER OF FACEBOOK

47.
ADVANTAGES
FOR BOTH SIDES
WIN-WIN
OUTCOMES

48.
CORPORATE ASSETS
• CREDIBILITY
• BRANDING & PR
• DISTRIBUTION
• SUPPLIERS
• FUNDING

49.
STARTUP ASSETS
• SPEED OF INNOVATION
• INNOVATIVE IMAGE
• REAL INNOVATION
• CULTURE TRANSFER

50.
HUGE UPSIDE POTENTIAL
FTW!

51.
SHORT & LONG TERM
VALUE DRIVERS
TIMING RISK COST
R&D Long Term High High
Corporate Startup
Engagement
Medium Term Average Low
M&A Short Term Low High

52.
5 EXAMPLES
FROM THE REAL WORLD
HOW
CORPORATES
ENGAGE WITH
STARTUPS

53.
5 EXAMPLES
HOW CORPORATIONS ENGAGE
1
Sprint, R/GA, Kaplan, Microsoft, Disney,
Barclays, Qualcomm and METRO all have
an accelerator powered by techstars.

54.
5 EXAMPLES
HOW CORPORATIONS ENGAGE
2 Johnson & Johnson has a co working space
with research facility: Jlabs.
JLABS

55.
5 EXAMPLES
HOW CORPORATIONS ENGAGE
3
Monsanto and Syngenta have a venture arm:
Monsanto Growth Ventures
& Syngenta Ventures.

56.
5 EXAMPLES
HOW CORPORATIONS ENGAGE
4
Procter & Gamble has a fellowship program
with the accelerator The Brandery in
Cincinnati, sponsoring startups.

57.
5 EXAMPLES
HOW CORPORATIONS ENGAGE
5 Even the CIA has a venture capital arm:
In-Q-Tel, an early investor in Facebook.

58.
MORE THAN ONE WAY TO DO IT
BUT HOW DO
YOU START
ENGAGING?

59.
HEURISTIC LOW TO HIGH
INVOLVEMENT
8. Mergers & Acquisition
7. Investment
6. Spin-Off
5. Accelerator / Incubator
4. Co-Working Space
3. Events
2. Startup Program
1. Support Services
HIGH ENGAGEMENT
LOW ENGAGEMENT

60.
HEURISTIC LOW TO HIGH
COSTS
8. Mergers & Acquisition
7. Investment
6. Accelerator / Incubator
5. Co-Working Space
4. Spin-Off
3. Events
2. Startup Program
1. Support Services
HIGH COSTS
LOW COSTS

61.
HEURISTIC LOW TO HIGH
RISK SEEKING
8. Investment
7. Mergers & Acquisition
6. Accelerator / Incubator
5. Spin-Off
4. Co-Working Space
3. Startup Program
2. Support Services
1. Events
HIGH RISK SEEKING
LOW RISK SEEKING

62.
HEURISTIC SHORT TO LONG
STRATEGY
8. Events
7. Support Services
6. Startup Program
5. Co-Working Space
4. Accelerator / Incubator
3. Spin-Off
2. Investment
1. Mergers & Acquisition
LONG TERM
SHORT TERM

63.
WHO DOES WHAT
262 OUT OF F500 CORPORATIONS

64.
CORPORATE ENGAGEMENT
BY CHANNELS & RANK

65.
TOP INDUSTRIES
WHO ENGAGE WITH STARTUPS
94.1%
Pharmaceuticals
85.2%
Telcos
68.8%
Regional Banks
64.5%
Major Banks
58.8%
Diversified
Insurance

66.
TOP INDUSTRIES
WHO ENGAGE WITH STARTUPS
100% (7 of 7)
Semiconductors
100% (7 of 7)
Computer Services
87.5% (7 of 8)
Beverages

67.
TOP COUNTRIES
WHO ENGAGE WITH STARTUPS
94.1%
France
71.4%
Germany
71.4%
Switzerland
56.8%
Japan
53.3%
United
Kingdom
Orange
EADS
Credit Agricole
Renault
BNP Paribas
VW Group
SAP
Allianz
Siemens
DTAG
Nestle
UBS
ABB
Syngenta
Swisscom
Nippon Tel
Softbank
Nissan Motor
KDDI
Seven & I Hld.
Vodafone
Standard Ch.
SABMiller
Diageno
WPP

68.
OTHER COUNTRIES
OF NOTE FOR COMPARISON
45.5%
U.S.A
23.8%
China
Johnson & Johnson
P & G
Google
Boeing
Dow Chemical
Ping An Insurance Group
SAIC Motor
Alibaba
Tencent Holdings
Lenovo Group

69.
THIS IS NOT A FAD
EVERYBODY
IS DOING IT

70.
HOW TO START ENGAGING
NEXT
STEPS

71.
ENGAGEMENT
EVOLVING IN PHASES
STEP TOOLS
1. Learn Research, Events
2. Partner
Support Services, Startup Programs, Co-
Working Spaces, Spin-Offs, Accelerators &
Incubators
3. Own Investments, Mergers & Acquisition

72.
DIFFERENT OBJECTIVES
DIFFERENT ENGAGEMENT TOOLS
Innovation Culture New Markets Platform Solving Problems
Events
Support Services
Startup
Programs
Co-Working Space
Accelerators &
Incubators
Spin-offs
Investments
M&A
CORPORATE OBJECTIVES
STARTUPENGAGEMENTTOOLS
MOST TO LEAST RECOMMENDED

73.
BUY
PRODUCT
+ USERS
BUY IP
BUY TEAMS
BUY
PRODUCT
LINE
BUY
REVENUE
STARTUPPHASE:SEARCHVSEXECUTION
ACQUISITION INTENTION
SEARCHING
EXECUTING
WHEN TO BUY WHAT

74.
BUY
PRODUCT
+ USERS
BUY IP
BUY TEAMS
BUY
PRODUCT
LINE
BUY
REVENUE
ACQUIRERSTRATEGY
INTEGRATE
INTEGRATE
INDEPENDENT
WHEN TO INTEGRATE
OR KEEP SEPARATE
ACQUISITION INTENTION

75.
1
Talk to a pool of startups about their
needs as part of your design process.
It's easy to assume 'they would love this'
when the bar for competitive offerings
is getting higher.
START TODAY
ENGAGE WITH STARTUPS

76.
2
There are many different ways
to engage with startups.
The key is to keep in mind your objectives,
resources and time frame for expected
results at all times.
START TODAY
ENGAGE WITH STARTUPS

77.
3
You can start small, choosing one channel of
engagement at a time and iterate fast based
on the results and buy-in.
However if you don't shoot for big enough wins
from the start, there may not be enough to show
to get you more resources later.
START TODAY
ENGAGE WITH STARTUPS

78.
4
Select the right partners to share the
knowledge and minimise risks.
Doing it alone can be scary. Feel free to talk
to us at +ANDERSEN & ASSOCIATES and the
digiHUB Aachen if you need some help along
the way.
START TODAY
ENGAGE WITH STARTUPS

79.
5
Whatever you choose to do, be prepared to
work at the speed of startups
Don't keep them waiting on you.
You don't want the engagement to backfire.
START TODAY
ENGAGE WITH STARTUPS

80.
DO
OR DO NOT
THERE IS NO TRY

81.
CONTACT
YOU@PLUSANDERSEN.COM
+ANDERSEN
& ASSOCIATES
INNOVATION & GROWTH
THROUGH
SCIENCE + ENTREPRENEURSHIP

82.
WE HELP
YOUR COMPANY
GET READY
FOR TOMORROW
TODAY
PLUSANDERSEN.COM

83.
PRE-ACCELERATION ACCELERATIONGENERATION EDUCATION SELECTION FINAL DECISION SCALING UP
DEALFLOW
LEARNING JOURNEY
LEARNING KEYNOTE
KILL YOUR COMPANY
INNOVATOR
MASTERCLASS
INNOVATOR
BOOTCAMP
LEAN
LAUNCHPAD
MVP AS
A SERVICE
INNOVATION
OUTPOSTS
DEMO
DAY
PITCHING
MASTERCLASS
EXPERTS AS
A SERVICE
MENTORS AS
A SERVICE
TRAIN THE TRAINER
SPINNING
OUT
+ANDERSEN PROGRAMS
AT ALL STAGES

84.
MORE
PLUSANDERSEN.COM
• Education & Training
• Programs & Processes
• Innovation Metrics
• Management Tools
• Innovation Outposts
• Human Assets