Written by: Gonzalo Martinez de Azagra
In this article we will review how large corporations take advantage of startup innovation. We will discuss corporate venturing. We call corporate venturing the entrepreneurial efforts by which established business organizations invest in and/or create new businesses (Sharma & Chrisman, 1999, p. 19).
The insights are based on the academic and professional experience of the author, Gonzalo Martinez de Azagar; co-founder and CEO of Cardumen Capital, founder and former head of Samsung Ventures Israel. Our wish is for this article to be alive and changing. We invite you to comment at the end.
The disruptive impact of technology in markets and the economy is not a new phenomenon. One of the most influential economists of the 20th century, Joseph Schumpter already pointed this out in his famous 1942 book ¨New technologies lead to regular phases of disruptive creation, changing existing market patterns¨. Today this phenomenon is even more pronounced as we see technological innovation accelerating and impacting more sectors faster. Established companies are being disrupted by the entrance of startups and large technology companies such as Amazon, Apple or Uber.
The entrance of these agile competitors increases competition and leads to the decline of those who…
