To stay competitive, corporations need effective ways to integrate innovation. Traditional methods like corporate venture capital often lack the required speed and efficiency. Venture Clienting has emerged as an alternative, enabling companies to act as early adopters of startup technology rather than investors. If you're new to the concept, our previous article What is Venture Clienting? provides a detailed introduction. A crucial part of this strategy is the Venture Client Unit (VCU) - a department responsible for identifying, testing, and integrating startup solutions within a company. Pioneered by BMW Group in 2015 with the BMW Startup Garage, the model has since been adopted by various multinational corporations looking to leverage external innovation efficiently.
A Venture Client Unit is a strategic department within a corporation that systematically engages with startups to integrate their technology solutions into corporate operations. Unlike venture capital investments, the VCU does not acquire equity but acts as an early adopter of a startup’s technology. The goal is to extract strategic benefits from startup ecosystems by adopting their innovations into corporate processes, allowing companies to remain agile and competitive.
The primary responsibilities of a VCU include identifying and evaluating promising startups, executing proof-of-concept projects to test the workability of their solutions, and integrating successful technologies into corporate processes. Additionally, the unit fosters a culture of collaboration between internal stakeholders and startups while ensuring alignment with overall business and innovation strategies.
The structure of a VCU varies depending on the corporation’s strategic priorities. If startup technology is critical for research and development, the VCU is often aligned with the CTO. If startup-driven innovation impacts multiple departments, the unit may report to the CSO or CEO. In large multinational corporations, separate VCUs may exist for different brands or subsidiaries to cater to specific business needs. The core team typically includes a Head of VCU, a Startup Intelligence Manager for scouting startups, a Startup Piloting Manager to manage pilot projects, and a Startup Adoption Manager to facilitate technology integration. Supporting them is an extended team of employees from relevant business areas who assist in pilot projects and adoption efforts.
By accessing new technologies, corporations gain a first-mover advantage and accelerate their innovation cycles. Engaging with startups also reduces time-to-market for new solutions while minimizing financial risk compared to traditional R&D investments. The structured approach of a VCU enhances collaboration between startups and internal teams, ensuring that valuable innovations are effectively integrated into corporate processes. Furthermore, adopting startup solutions strengthens a company’s competitive position by improving operational efficiency, enhancing product offerings, and even creating new business opportunities.
BMW Startup Garage was the first initiative of its kind, allowing BMW to integrate startup technologies into its vehicles and production processes. Airbus Scale, for example, adopted the VCU model to improve efficiency in incorporating startup innovations in aviation and aerospace solutions. Open Bosch focuses on collaborating with deep-tech startups in fields like Industry 4.0, artificial intelligence, and IoT, leveraging their technologies to enhance both industrial and consumer products.
The successful implementation of a venture clienting approach requires not only a strategic approach, but also the right partners to bring companies and start-ups together and support the integration process. This is where external innovation platforms come in, acting as bridge builders between companies and start-ups. The SpinLab Group supports this process with various services that help companies to identify suitable startup technologies, structure pilot projects and ensure smooth implementation. This makes it easier for companies to access innovative solutions and helps to ensure that new technologies can be integrated into existing business processes more quickly and efficiently.
Further information on support in the venture clienting process can be found on our website.