The #1 Reason Corporate Ventures Fail

We know that the vast majority of startups in the wild fail because their teams are unable to find Product-Market Fit (Marc Andreesen defines this as ‘being in a good market with a product that can satisfy that market’). But for corporate startups, the number one reason for failure is a lack of Corporate-Venture Fit (we define that as having close alignment to corporate strategy, goals and capabilities).

In this episode, we explored the importance of Corporate-Venture Fit, how to find it, and the criteria for measuring it.

Key takeaways:

• Corporate venture fit is the internal alignment and compatibility between a corporate innovation team and the organisation they work in.
• Obstacles to achieving corporate venture fit include a lack of stakeholder alignment, unclear strategic objectives, and difficulties in integrating new ventures into the existing structure.
• Building relationships and listening to internal stakeholders early on in the venture-building process is crucial.
• It is important to have a clear understanding of the market size and feasibility of the venture, as well as the organisation's capacity and appetite for innovation.
• Constant organisational changes can pose challenges, and it is necessary to adapt and focus on areas that are more stable.

Here's what we covered:

00:00 Introduction

01:48 Understanding Corporate Venture Fit

06:59 Obstacles to Achieving Corporate Venture Fit

09:37 Building Relationships and Listening to Stakeholders

21:16 Navigating Constant Organisational Changes

33:52 Conclusion

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Interested in learning how to achieve and maintain corporate-venture fit in your organisation? Grab some time with the team here.