energy transition

How corporate venturing accelerates the Energy Transition

published 15-10-2018 / share  

The mobility industry and the energy sector are getting more and more connected through the spurt of the Electrical Vehicle (EV). And this is an interesting place for innovation to originate from. For example, opportunities arise by combining the storage capacity of batteries (EV) with trading on the energy markets. Or by using data from the connected car to forecast the demand for energy.

Corporate Venturing in the energy and mobility space

Based on the energy transition in mobility today, mobility players can benefit from taking minority stakes or setting up joint ventures with startups in this space. In this way, companies can reap financial returns, gain an early understanding of new markets or technologies, or expand strategic options over the medium term.

Strategically driven Corporate Venturing investments are made primarily to increase, directly or indirectly, the sales and profits of the incumbent firm’s business. In a recent case, the fleet operator we helped with setting up a corporate venture, was seeking ways to identify and exploit synergies between itself and the new venture. The primary goal was to exploit the potential for additional growth within the parent firm.

Managing risks

The biggest transition in mobility is now taking place, moving from traditional ICE power trains to electric, which among others impacts the way we drive, charge, plan, and feel.

Imagine how the electric vehicles impact business models in repair, maintenance and ‘fuel’. Through the transition towards electricity as a source of power, mobility players can leverage their EV assets to help:

  1. managing congestion
  2. accelerating renewable energy
  3. saving money

In addition, it helps customers in their customer journey to have only one supplier for mobility, infrastructure and energy, with corresponding benefits.

For such innovations to be timely implemented and to address newly identified needs, the corporate venture is the excellent vehicle. Funded by corporate investment and having access to a large network, the start-up can go faster than the parent company. When the founders have skin in the game, both corporate and start-up can share risks and are maximally motivated to bring the venture to a success.


Time for another read?