Global Corporate Venturing editor Toby Lewis hosted a panel with George Coyle, Bo Ilsoe, Jon Lauckner and Ralf Schnell, discussing the current state of corporate venturing.
Toby Lewis, editor of Global Corporate Venturing, invited four corporate investors to discuss the recession’s lingering effects, the industry’s state and the relationship between investment units and their parent company.
The panel consisted of George Coyle, manager of energy company ConocoPhilips’ corporate venturing subsidiary Technology Ventures; Jon Lauckner, president of automotive manufacturer General Motors’ investment division GM Ventures; Ralf Schnell, CEO of electronics conglomerate Siemens’ corporate venturing unit Siemens Venture Capital; and Bo Ilsoe, managing partner of communications technology provider Nokia’s investment unit, Nokia Growth Partners.
The panel broadly agreed that corporate venturing has been increasing in importance, with the global recession playing a vital role in the industry’s enthusiasm today.
As Lauckner, noted, many businesses cut down on their research and development when the financial crisis hit, but once they came out the other end they realised they needed to find innovation elsewhere in order to survive in the long run.
The reality of the low interest rates still being offered by financial institutions also means that merely putting money in the bank provides a very low return of investment, while corporate venturing can offer much more lucrative returns.
This explains the significant increase in new corporate venturing units appearing, according to Ilsoe, who referred to past five years as a watershed moment for the industry.
Schnell noted that Siemens Venture Capital does not regard itself as merely conducting corporate venturing, but rather establishing business relationships using investments and growth financing to ensure that business partners can become strong players.
Schnell also explained that communication is paramount within the unit in order to ensure each party is continuously aware of the unit’s goals.
Coyle predicted that cleantech investments will remain flat over the next year as investors look for scalable technologies ready for market.
Similarly, Ilsoe expects investments in India to die down again. While many corporates are currently entering the market with large funding commitments, in his experience the money tends to disappear quickly once the tide turns.
Schnell meanwhile, when asked by Toby Lewis about the near future of corporate venturing, joked: “I have no idea.”