The role of corporations as investors in Startups

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BY : Diego GutiérrezJanuary Mon, 2015
In 2014 it was time for Corporations to take a leading role in investing in innovation. From the United States are coming moves for corporations to bring out their strategic input as an advantage against the Venture Capital.

Difficulty in adapting to change

The large organisational structures of multinationals have always been the focus of criticism about their lack of flexibility and their inability to take on new business models. As the former CEO and chairman of GE said, "If the rate of change is greater outside than inside, the end is near".

But the tide is beginning to turn and corporations are becoming more aware that a new way of incorporating innovation is taking hold. A wave of corporate venture capital funds is emerging. In Spain, for example, the one led by Wayra has taken centre stage, and also in the financial sector, the initiative of the Banco Sabadell BStartup and the work of the Foundation Bankinter in the entrepreneurial world.


Profitability versus CSR

Due to the media effect that these initiatives have on Spanish corporations, many wonder whether their origin comes from the corporate social responsibility department or whether they are really economically motivated. For example, recently Simon Devonshireresponsible for Wayra Europe, explained in an interview "Our motivation is economic. Wayra Europe is already focused on providing a return on investment in start-ups. We have had very few losses, less than expected". Proof of this is that there are already 80 Wayra startups working with Telefónica as a client.

We hope that 2015 will bring us new corporations that include investment in innovative startups as a source of future growth in their strategic plans.

If you are interested in a competitive analysis of a sector, in receiving help to find investors, in identifying or analysing an investment opportunity or in validating an innovative project, leave us your email and phone number and we will explain you how we can help you with our tool.



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