Expert in strategic investments, building CVC arms, and driving corporate strategic growth
92 out of 1,500. That’s how many corporate–startup engagements in Europe led to real business deals since 2017, according to the EIC. Less than 7%. If this were agriculture, we’d call it crop failure. If it were drug development, we’d call it unacceptable attrition. But in innovation? We still call it “open innovation.” Startups are not failing corporates. Corporates are failing startups. Not because of lack of ambition, but because of lack of structure. Pilots without scale-up plans. KPIs that don’t align across business units. Budgets that stop at “proof of concept.” The EIC points to four pillars for fixing this: strategy, commitment, skills, experimentation. I’d add a fifth: ecosystem accountability. If corporates claim sustainability or climate leadership, they must treat startup partnerships as long-term value creation, not short-term optics. In AgriFoodTech and ClimateTech, where scaling takes time and science doesn’t bend to quarterly targets, this is non-negotiable. CVC is not a lottery ticket, it’s a responsibility. The full report is worth a read: https://lnkd.in/ecqmm7eA #CVC #ClimateTech #AgroFoodTech #Sustainability #InnovationStrategy
Hadar Sutovsky thanks for highlighting a subject I feel very strongly about. I have been on both sides of the table, and personally believe that the most important reasons for collaboration failure are: - Corporate “Not Invented Here” culture. - Cultures that reward risk aversion more than disruption.
Thank you Hadar. Having been on the corporate side 10 y ago, at the startup side for 5 y. and now in the middle / matchmaking since 5 y. I can only voice the conclusions of this report and blame the overall misunderstanding / misconception of what it takes to make true innovation (i.e. what was never done before) happen. Agrifood stakeholders underestimate the skills, mindset and resources to be mobilized and the timeline, as well as the inherent rate of failure that innovation requires to succeed. At the end this 7% turns into startup failure, which also means an immense waste of resources and humanity. We're here to make it work and we can only succeed by being all supportive to each other. The Alliance we're building around agrifood biotech with EIT Food is thus promising. Please PM for more info!
Waw. That is no good. Maybe there are not enough corporates in AgriTech to absorb all innovation? I observe that many corporates fight for the status quo, rather than embracing innovation. Or should innovation raise the bar, to meet the corporate standards? Last week at World AgriTech in Londen it was discussed that all parties, including investment companies, should recalibrate and adjust the (short-term) expectations. Corporates have the power and the value chain connection to be more actively engaged to innovation. Do they have the key in hand?
Yaki Harel
3w
From the startup's perspective, the so-called "open innovation" goal is to access the latest ideas and technologies without needing to invest or be accountable for the success. The first step for start-ups collaborating with corporates should be aligning the goals to prevent frustration and failures later on.
And then they say: "Oh, it's a shame that company closed down."
Thank you for sharing Hadar Sutovsky! Additionally, we can clearly see the focus on R&D less than a 'Product Market Fit' in every step of the way...
Well said!
Innovation & Strategy » CVC · M&A · Growth » Bio · Industrials · DeepTech · Climate
3w7% conversion is disappointing - highlights a structural and leadership issue. If corporates are serious about climate or food security, boards should treat startup engagement as a fiduciary responsibility, not optional PR. The EIC - European Innovation Council's pillars are spot on; execution also requires leaders who know how to align KPIs, budgets, and business units with venture outcomes. CVCs are uniquely positioned to create that bridge. Without it, corporates risk burning trust along with time.