A venture client is a company that purchases, uses, and adopts a startup's product with the goal of obtaining a strategic benefit, rather than investing in the startup for equity. Venture clienting lets an established company tap into new technologies and business models and accepts the added risk of an unproven, potentially failing startup solution because that solution addresses a problem that matters to its competitiveness. It differs from traditional corporate venture capital in that it centers on buying the startup's product to capture a strategic benefit rather than taking an equity stake in the company.
Facts
Core MechanismA venture client purchases, uses and adopts a startup product with the goal of obtaining a strategic benefit, accepting the added risk of an unproven solution because it addresses a problem that affects the competitiveness of the buying company; unlike corporate venture capital, no equity stake is taken in the startup. 1 Connections
Associated With
BMW Startup Garage is a cited origin case of the venture client model.
The venture client model, pioneered at BMW, has since spread mainly among technology sector corporations seeking early access to startup innovation.
Sources
1. Wikipedia, Venture Client
WikipediaLead section, first sentence
A Venture Client is a company that purchases, uses and adopts startup solutions with the purpose of obtaining a strategic benefit.
Lead section
The term venture client was coined originally and popularized by Gregor Gimmy.
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