Venture clienting as a model for success: Interview with TechFounders

How TechFounders brings start-ups and companies together through venture clienting and enables long-term, scalable innovations. An insight into the successes and challenges of the model.

TechFounders, UnternehmerTUM's accelerator program, has made a name for itself in the dynamic world of startups and innovation. UnternehmerTUM is Europe's leading center for innovation and entrepreneurship, based in Munich. Since its foundation in 2015, TechFounders has supported almost 200 startups that have acquired a total of over 800 million euros in venture capital. In addition to promoting startups and startup scouting for companies, TechFounders is further expanding another pillar: Venture Clienting. We asked Moritz Förster, Managing Partner of TechFounders, what motivated them to introduce Venture Clienting - and what surprising collaborations and insights have already resulted from it.

How does Venture Clienting fit in with the services of a startup accelerator like TechFounders?

For us at TechFounders, Venture Clienting is the natural evolution of what we have been doing for the last ten years. TechFounders started in 2015 as the flagship accelerator of UnternehmerTUM, Europe's leading innovation center, with the basic idea that collaboration is the key to innovation. What has always set us apart is our focus on bringing startups together with established companies to tackle specific challenges and address their innovation needs. Long before the term "venture clienting" became a trend, we were making such connections and helping companies find the right startups to solve their most pressing problems.

In recent years, companies have realized that cultivating long-term partnerships with startups isn't just a trend - it's essential.

Why is Venture Clienting gaining importance right now?

In recent years, companies have realized that cultivating long-term partnerships with startups is not just a trend - it's essential. In the face of economic challenges and rapid technological developments, especially in the fields of artificial intelligence, blockchain and quantum computing, companies need a structured, focused approach to remain competitive. This is where the venture-client model comes into play. It's not just about quickly presenting a cool new solution, but about integrating this innovation mentality directly into the company's processes - making it an integral part of the corporate culture. We don't just ensure that start-ups and companies come together - we facilitate genuine, scalable collaborations that are designed for the long term.

Is venture clienting always the best solution?

There is definitely no "one-size-fits-all" approach when it comes to collaboration between startups and companies. The right cooperation model always depends on the goals of the companies involved. Even though venture clienting is becoming increasingly popular, it is not a magic bullet that solves every problem through startup innovation. We work closely with our partners to identify the best strategies - be it through pilot projects, innovation challenges, targeted startup scouting or the establishment of our own venture clienting or open innovation units. Our aim is to enable our clients to become experts in this field themselves in the long term. In fact, we have already helped a number of companies to systematically set up such units.

Many of our customers - such as Festo, Miele and DATEV - have been working with us for years, which underlines the trust they place in our services. We can draw a great deal of knowledge and experience from this long-term cooperation and from both successful and failed projects. This enables us to specifically assess which approaches are best suited to which company and show them solutions that really fit their needs. In addition, our involvement in an innovation center gives us access to a wide range of complementary services tailored to companies of all sizes. This interconnectedness strengthens our venture clienting offering and ensures that our clients go through a holistic innovation journey rather than just receiving isolated solutions.

In your opinion, what success factors are crucial for effective venture clienting?

The success of venture clienting depends on several key factors. It's not just about bringing startups and companies together and hoping it works. First, the problem must be clearly understood. Many companies need help identifying strategically relevant problems where startups can really add value. It's not enough to simply present a cool, cutting-edge solution and hope it works - you need to know exactly what you want to achieve.

Another important aspect is agility. Large companies tend to get stuck in their usual processes, while startups work at a different pace. For venture clienting to work, it is important that companies are open to change and reduce bureaucracy. Lean processes, especially in procurement and legal matters, allow startups to get started quickly and test their solutions - which is an essential part of the venture clienting approach.

What role does management support play in this?

Management support is crucial. Without the backing of top management, venture clienting efforts often get stuck, bogged down by indecision and bureaucracy. When upper management gives the green light, resources flow more smoothly, projects stay on track, and collaboration becomes more embedded in overall business goals. Support from the top turns a nice idea into something really valuable.

How can cultural differences between startups and large companies be bridged?

When the corporate cultures of startups and corporations clash - be it due to different communication styles, decision-making processes or approaches to problem solving - even cost-efficient processes don't help. An external mediator can play a crucial role here in bridging these cultural differences and avoiding misunderstandings before they escalate into major problems. Open communication is key here - ongoing dialog between departments such as R&D, legal and procurement is essential to ensure that the startup's solution can be effectively integrated into the company's operations. If internal teams are involved from the start, they are more likely to support the project.

Can you give an example of an unexpected collaboration between a company and a startup that you have facilitated?

We have realized almost 200 projects between companies and startups in different industries and on different continents. Sometimes the innovation topics that companies focus on are in areas that you wouldn't expect right away.

A good example is the collaboration between HP and the New York startup Simplifyber in 2022. HP is primarily known for its printers and PCs. But the company has teamed up with Simplifyber to combat the fashion industry's enormous carbon footprint. The innovative startup Simplifyber makes sustainable and affordable clothing by injecting a proprietary liquid made from natural fibers into molds. This eliminates the need for spinning, weaving, cutting and sewing. The co-founder of Simplifyber is fashion designer Maria Intscher-Owrang, who has already worked for major luxury brands such as Vera Wang and Alexander McQueen. The start-up is revolutionizing the fashion industry. In a five-month pilot project, HP and Simplfyber jointly developed the world's first fully biodegradable shoe made from plant-based materials. They combined Simplifyber's groundbreaking technology with HP's advanced 3D printing capabilities.

This collaboration not only demonstrates the potential to combine technology with sustainability, but also underlines the crucial role such partnerships play in addressing global challenges.

This collaboration not only demonstrates the potential to combine technology with sustainability, but also highlights the critical role such partnerships play in addressing global challenges. In a world where innovation is essential, this fusion of different approaches shows that the most effective solutions often come from surprising collaborations.

What challenges have you experienced in the collaboration between companies and start-ups?

Collaborations between companies and startups offer enormous potential, but also bring with them some challenges - especially in Germany. While the rest of Europe, particularly Italy and the Benelux countries, is booming in terms of open innovation, Germany is lagging behind. Only 57% of German companies participate in such partnerships and, alarmingly, less than 40% of start-ups rate the opportunities for cooperation with established companies positively.

What are the biggest hurdles?

Sometimes aligning the goals of companies and startups is like a game of hush-hush. Companies need to clearly define what they want to achieve. However, these goals often seem vague or overambitious. This lack of alignment can lead to frustration on both sides, as startups often struggle to meet expectations that were not clearly communicated from the start.

Another obstacle is the bureaucratic hurdles that often slow down large organizations. Even when there is enthusiasm for innovation, it sometimes feels like a struggle to get the necessary approvals and resources. Companies can get stuck in long decision-making processes, which inhibits agility and keeps startups in a holding pattern. This is where a neutral third party can make a big difference. A mediator can streamline communication, clarify goals and ensure that everyone is on the same page from the start.

Another challenge is the allocation of resources. While many companies express a desire to engage in venture clienting, they are often unwilling to allocate enough dedicated resources to this collaboration. In addition, companies are often concerned about intellectual property and confidential information, leading to a reluctance to share important insights. This lack of transparency can create barriers that hinder effective collaboration. Again, a neutral party can act as a mediator to resolve legal concerns and build trust and transparency. If all parties speak openly with each other and bring both commitment and resources to the table, these are the best conditions for fruitful collaboration.

Thank you for the interview!


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