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Questions and Answers
What advantage does Corporate Venture Capital provide to start-ups regarding market access?
What advantage does Corporate Venture Capital provide to start-ups regarding market access?
Which of the following is a financial goal of established companies in Corporate Venture Capital?
Which of the following is a financial goal of established companies in Corporate Venture Capital?
How does Corporate Venture Capital assist start-ups in overcoming the 'Liability of Newness'?
How does Corporate Venture Capital assist start-ups in overcoming the 'Liability of Newness'?
What resource does Corporate Venture Capital provide that allows start-ups to focus on value creation?
What resource does Corporate Venture Capital provide that allows start-ups to focus on value creation?
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What is one of the social and image-effective goals of established companies participating in Corporate Venture Capital?
What is one of the social and image-effective goals of established companies participating in Corporate Venture Capital?
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What is a primary focus in the structure of a Corporate Venture Capital program?
What is a primary focus in the structure of a Corporate Venture Capital program?
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What is a major barrier faced by Corporate Venture Capital initiatives?
What is a major barrier faced by Corporate Venture Capital initiatives?
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Which of the following is NOT a key success determinant for selecting start-ups in Corporate Venture Capital?
Which of the following is NOT a key success determinant for selecting start-ups in Corporate Venture Capital?
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What aspect is important for ensuring the independence of a Corporate Venture Capital company?
What aspect is important for ensuring the independence of a Corporate Venture Capital company?
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What should characterize the development of the chosen start-up according to key success determinants?
What should characterize the development of the chosen start-up according to key success determinants?
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Which goal is NOT typically associated with Corporate Venture Capital?
Which goal is NOT typically associated with Corporate Venture Capital?
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What type of companies should Corporate Venture Capital focus on for selection?
What type of companies should Corporate Venture Capital focus on for selection?
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What is a key characteristic that aligns the culture of a start-up and corporate for later integration?
What is a key characteristic that aligns the culture of a start-up and corporate for later integration?
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What is the primary purpose of accelerators in corporate venturing?
What is the primary purpose of accelerators in corporate venturing?
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How do corporate hackathons differ from incubators?
How do corporate hackathons differ from incubators?
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What are the distinguishing features of corporate incubation?
What are the distinguishing features of corporate incubation?
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What aspect of corporate venturing allows for engagement with more startups?
What aspect of corporate venturing allows for engagement with more startups?
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What is a key feature of mergers and acquisitions in corporate venturing?
What is a key feature of mergers and acquisitions in corporate venturing?
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What is the main goal of corporate hackathons?
What is the main goal of corporate hackathons?
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What is a common misconception about corporate incubators?
What is a common misconception about corporate incubators?
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In what way does corporate venturing separate itself from traditional investments?
In what way does corporate venturing separate itself from traditional investments?
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What are corporate accelerators designed to do?
What are corporate accelerators designed to do?
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Which characteristic is NOT typical of corporate accelerators?
Which characteristic is NOT typical of corporate accelerators?
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What is one strategic goal of corporate accelerators?
What is one strategic goal of corporate accelerators?
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How does a corporate become a customer in the context of start-ups?
How does a corporate become a customer in the context of start-ups?
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Which of the following is a central advantage of corporate accelerators?
Which of the following is a central advantage of corporate accelerators?
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What characterizes the 'Listening' type of corporate accelerator?
What characterizes the 'Listening' type of corporate accelerator?
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What is emphasized as a critical success factor for corporate accelerators?
What is emphasized as a critical success factor for corporate accelerators?
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Corporate venture capital (CVC) differs from traditional VC in that it has:
Corporate venture capital (CVC) differs from traditional VC in that it has:
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What is a potential role of a corporate in the 'distribution partner' relationship?
What is a potential role of a corporate in the 'distribution partner' relationship?
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Which phase of participation is typical for the 'Unicorn Hunter' type of corporate accelerator?
Which phase of participation is typical for the 'Unicorn Hunter' type of corporate accelerator?
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How is corporate venture capital defined in relation to established companies?
How is corporate venture capital defined in relation to established companies?
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What signifies the purpose of corporate accelerators when they 'buy' a start-up?
What signifies the purpose of corporate accelerators when they 'buy' a start-up?
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Which statement about the characteristics of corporate accelerators is true?
Which statement about the characteristics of corporate accelerators is true?
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What is a primary goal of start-ups in cooperation with established companies?
What is a primary goal of start-ups in cooperation with established companies?
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Which factor is mentioned as a determinant for successful cooperation?
Which factor is mentioned as a determinant for successful cooperation?
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What is a common misconception about start-ups when partnering with established companies?
What is a common misconception about start-ups when partnering with established companies?
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What describes the relationship between start-ups and corporates in terms of risk and potential return?
What describes the relationship between start-ups and corporates in terms of risk and potential return?
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What distinguishes the strategic goals of corporates compared to start-ups in their cooperation?
What distinguishes the strategic goals of corporates compared to start-ups in their cooperation?
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Which action is NOT advisable for ensuring successful cooperation?
Which action is NOT advisable for ensuring successful cooperation?
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What is one of the main benefits corporates seek from starting up cooperations?
What is one of the main benefits corporates seek from starting up cooperations?
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What is a typical expectation of established companies from their start-up partners?
What is a typical expectation of established companies from their start-up partners?
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In terms of corporate venturing, what is a common format used to assist start-ups?
In terms of corporate venturing, what is a common format used to assist start-ups?
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How do corporates typically want to control technology in their agreements with start-ups?
How do corporates typically want to control technology in their agreements with start-ups?
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What role does empathy play in the cooperation between start-ups and corporates?
What role does empathy play in the cooperation between start-ups and corporates?
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Why might a start-up find it challenging to have an established corporate partner?
Why might a start-up find it challenging to have an established corporate partner?
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What is typically a secondary goal for start-ups when entering into cooperation?
What is typically a secondary goal for start-ups when entering into cooperation?
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What aspect can signify a fundamental difference in cooperation goals between start-ups and corporates?
What aspect can signify a fundamental difference in cooperation goals between start-ups and corporates?
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Study Notes
Digital Business 2: Corporate & Digital Entrepreneurship
- Course code: 601.922
- Instructor: Dr. Patrick Holzmann
Corporate & Digital Entrepreneurship: Cooperation
- Focuses on cooperation between corporations and startups.
- Highlights the increasing importance of this type of cooperation due to factors such as limited funding for startups and potential high returns for corporations.
Corporate Entrepreneurship and Cooperation
- Central connections between incubators, company builders, accelerators, and startups.
- Enable cooperations with startups.
- Investment in startups can lead to innovative ideas and flexibility.
- Corporations can benefit through venture capital financing.
- Implementation of corporate entrepreneurship is facilitated by cooperation.
Start-up Corporate Cooperation
- Introduction and basics
- Startups expand cooperation with various partners (customers, suppliers, universities).
- New forms of cooperation are emerging and expanding classic investments.
- Cooperative ventures aim to leverage complementary resources (e.g., startup agility versus corporate resources/market power).
- Cooperations are becoming more frequent due to low funding and low innovation risk.
- Empiricism suggests a promising framework for cooperation.
Discrepancy between Start-ups and Corporates
- Expectations of established companies for cooperation partners include proof of technical competence, existing reference customers, and familiarity with business processes.
- Startups may present ideas and prototypes but lack established marketable products, few customers, and industry experience.
Fundamental Differences in Cooperation Goals
- Startups strive to maintain control over technology, are confident in their technology, and prioritize decision-makers as executors.
- Established companies seek to take control, are more skeptical, and prefer decision-making by non-executors.
Start-up Corporate Cooperation: Expectations and Objectives
- Startups aim to leverage customer/market access and reputation of the partnering corporation.
- Combining technology expertise with the corporation's knowledge is another goal.
- Potential for enabling future investment by the corporation and selling the startup to the corporation are important objectives.
- Startups also look for access to data
Start-up Corporate Cooperation: Matching of Objectives and Suitable Actions
- Matching of objectives and suitable actions is a crucial aspect.
- Generating know-how and utilizing references from startups.
- Acquiring potential customers through pilot customers.
- Utilizing startup resources effectively.
- Finding technology partners.
- Startups need to ensure growth, supervisory board mandate, investment, and joint ventures.
Start-up Corporate Cooperation: Determinants of Successful Cooperation
- Development of a company-wide plan for collaboration.
- Establishing alignment of objectives between partners.
- Applying empathy and understanding.
- Discussing at eye level and preparation of transparent contracts.
- Renouncing abuse of power and start-ups bearing innovation losses.
- Corporations following prevention strategies.
- Preventing enticing away of employees, and taking over of ideas of partners.
Start-up Corporate Cooperation: Central Aspects of Strategy Development
- Understanding current trends and developments; Screening the startup ecosystem for insight into needs.
- Clarifying values and capabilities available to share.
- Clarifying and defining primary and secondary cooperation goals.
- Outside-in strategy: Revitalization through startup creativity & innovation.
- Inside-out strategy: Commercialization of innovative technologies that don't fit the core business.
Corporate Venturing
- Established companies increasingly use structured programs for cooperation with spin-offs and startups.
- The overall goal is to improve the probability of success of startups by leverage the corporation's resources.
- Facilitating the strategic and financial goals for the corporation.
- Different forms of cooperation, including incubators, company builders, and accelerators.
Corporate Venturing: Spectrum of Possible Involvement
- Corporate Hackathons: Intense collaborations.
- Business Incubators: Company-supported flexible space.
- Corporate Incubation: Provides a path to market for non-core developments.
- Corporate Venturing: Corporations participate in external innovation.
- Mergers & Acquisitions: Quick access to capabilities.
Corporate Accelerators: Definition & Characteristics
- Defining corporate accelerators as temporary programs that support startups in the new venture process (mentoring, education).
- Common characteristics include open application process, focus on smaller teams, temporary support, and support of startup cohorts.
Corporate Accelerators: Strategic Goals of Corporates
- Building knowledge about market trends and technologies.
- Developing and integrating new products and services.
- Evaluating disruptive products and services.
- Acquiring and retaining entrepreneurial talent.
- Transferring entrepreneurial spirit into the company.
Corporate Accelerators: Different Characteristics and Central Advantages
- Corporate support for startup pilot projects reduces costs and accelerates processes.
- Corporations become customers and know solutions and scaling.
- Corporations become distribution partners for pooling resources.
- Corporations investing in startups (CVC) allows them to enter markets quickly/efficiently.
- Corporations can buy startups (attractive exit scenario).
Corporate Accelerators: Typology of Different Programs
- Different typologies based on goals, listening post methodologies, value chain strategies/investors, and focus on strategic logic and opportunity.
Corporate Accelerators: Critical Success Factors
- Clear alignment of activities with a superior goal and top management support.
- Long-term nature of corporate efforts focused on value creation of the startup.
- Providing access to corporate resources, increasing credibility/legitimacy, and facilitating market access.
Corporate Venture Capital (CVC)
- CVC is inspired by independent Venture Capital companies, but pursues strategic goals in addition to financial ones.
- CVC defines temporary equity participation and management know-how support for young, technologically-oriented companies.
- CVC is based on financial intermediation theory.
Corporate Venture Capital: Advantages for Startups
- CVC helps overcome "Liability of Newness" and "Liability of Smallness."
- Startups benefit from market access through corporate channels.
- Startups access corporate networks and knowledge from the industry.
- Reduces administrative burden on startups.
Corporate Venture Capital: Goals of Established Companies
- Financial goals (high ROI, risk spreading).
- Building a positive social & image-driven external image.
- Supporting the regional technology and startup ecosystem.
- Strategic goals include observation of emerging technologies, promoting their own company's growth and market reach, and strengthening internal entrepreneurial spirit.
Corporate Venture Capital: Major Barriers
- Lack of clear mission/direction for the venture capital program.
- Finding qualified/sufficient investment managers.
- Determining appropriate compensation of investment managers/advisors.
Corporate Venture Capital: Central Determinants of Success
- Structuring the program with balanced financial and strategic goals.
- Engaging investment managers with pertinent experience as entrepreneurs and/or investors.
- Ensuring structural independence to the CVC company.
Corporate Venture Capital: Key Success Determinants
- Selecting startups that meet certain standards of uniqueness, large-potential market fit, and proven/scalable business models.
- Proven startup models.
- Strong start-up teams with management / entrepreneurial experience.
- A strong alignment between startup and corporation culture.
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Description
This quiz explores the crucial aspects of cooperation between corporations and startups in the realm of digital entrepreneurship. It discusses the roles of incubators, accelerators, and the significant benefits of such collaborations, including innovation and venture capital financing. Test your understanding of the emerging trends and strategies in corporate entrepreneurship.
