Milwaukee, Wis. - You may have missed this: Web-software services provider Zywave Inc. recently announced it would be the anchor tenant in a new 165,000-square-foot building being constructed in the Milwaukee County Research Park.
The announcement was little noticed outside of commercial real estate development circles, but the news is more than a real estate story. It’s a major technology success story playing out, and an example of how a powerful business development practice could bolster the regional economy, if it were not engaged so rarely.
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That practice is called corporate venturing, a broad category of activities whereby an operating company deliberately and strategically develops and allocates funds and resources to new businesses.
The most well known strategies under the corporate venturing umbrella are acquisitions in early-stage companies and joint ventures. Lesser known, but with high potential, are internally focused business creation strategies, or “internal corporate venturing” initiatives. Some are conducted informally as “skunk works” projects, ad hoc idea creation, or the pursuit of opportunity-driven innovation. Other strategies such as corporate venture capital, corporate incubators, and support for corporate entrepreneurship are more formally structured.
Founders knew of Zywave’s growth potential
Zywave is an example of internal corporate venturing through its former parent, Frank F. Haack & Associates, an insurance brokerage firm. Haack internally formed and launched Zywave in 1995 to provide software-based reporting solutions to its insurance clients. However, from the beginning it was clear in the minds of the founders that Zywave was a software services company and could stand on its own after a planned incubation period supported by the parent founders.
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Zywave now has more than 110 employee and its leaders anticipate annual growth of 25 to 30 percent the next three to five years, according to Bill Haack, Zywave’s president and CEO. This region has other outstanding examples of corporate venturing successes — examples that will be explored in more detail in a follow-up column.
Let’s first take a look at the strategy of corporate venturing, since the term is relatively unknown and unused in this region. Even though the term may be unfamiliar and the practice uncommon, the potential for new business development through formal or informal corporate venturing is high, particularly the development of software-centric businesses.
Jeff Covin, professor of entrepreneurship at the University of Indiana, has been researching and publishing works on corporate venturing for more than a decade. In recent discussions, he shed light on the many facets of corporate venturing and its role in strategy and innovation. His work can help navigate the maze of options and funding scenarios.
Corporate venturing can be funded directly through an operating budget or indirectly through a financial intermediary such as a corporate-sponsored fund or outside managed fund.
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The announcement was little noticed outside of commercial real estate development circles, but the news is more than a real estate story. It’s a major technology success story playing out, and an example of how a powerful business development practice could bolster the regional economy, if it were not engaged so rarely.
Also read Gold as an Investment
The most well known strategies under the corporate venturing umbrella are acquisitions in early-stage companies and joint ventures. Lesser known, but with high potential, are internally focused business creation strategies, or “internal corporate venturing” initiatives. Some are conducted informally as “skunk works” projects, ad hoc idea creation, or the pursuit of opportunity-driven innovation. Other strategies such as corporate venture capital, corporate incubators, and support for corporate entrepreneurship are more formally structured.
Founders knew of Zywave’s growth potential
Zywave is an example of internal corporate venturing through its former parent, Frank F. Haack & Associates, an insurance brokerage firm. Haack internally formed and launched Zywave in 1995 to provide software-based reporting solutions to its insurance clients. However, from the beginning it was clear in the minds of the founders that Zywave was a software services company and could stand on its own after a planned incubation period supported by the parent founders.
Also read Financial schemes
Zywave now has more than 110 employee and its leaders anticipate annual growth of 25 to 30 percent the next three to five years, according to Bill Haack, Zywave’s president and CEO. This region has other outstanding examples of corporate venturing successes — examples that will be explored in more detail in a follow-up column.
Let’s first take a look at the strategy of corporate venturing, since the term is relatively unknown and unused in this region. Even though the term may be unfamiliar and the practice uncommon, the potential for new business development through formal or informal corporate venturing is high, particularly the development of software-centric businesses.
Jeff Covin, professor of entrepreneurship at the University of Indiana, has been researching and publishing works on corporate venturing for more than a decade. In recent discussions, he shed light on the many facets of corporate venturing and its role in strategy and innovation. His work can help navigate the maze of options and funding scenarios.
Corporate venturing can be funded directly through an operating budget or indirectly through a financial intermediary such as a corporate-sponsored fund or outside managed fund.
Related post
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HOW DONATING YOUR RV CAN HELP A NEEDY CAUSE
Shape up with these hot hula-hoop moves
biomass crossfit studio navalur
Great Britain on a plate
Compare Home Loan Interest Rates
Roaming Money
Lead Generation and SEO
Improve your car rental services earning by using digital marketing
Facebook slowly approaching mobile advertising effectiveness
Tree-Athlon 2009
I strained my lower back doing DIY - Gym Training
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