When Innovation Opportunity meets M&A and Venture Investment

We recently wrote a blog about the trend we find ourselves in where growth is being fueled through innovation. And when we take a step deeper into the detail of the study completed by Deloitte, we notice some key market disruptors taking place, shaping our economy in a big way, and the role that Mergers & Acquisitions and Venture investments play in capturing the opportunities afforded to the rest of the working world, through innovation.

According to Deloitte, there are some major disruptors at play occupying 3 very huge seats at the Growth Strategy Table: Shifts in Technology, Shifts in Consumer Behaviour and Convergence across Sectors:

  • In the Tech world, we see a massive shift towards Artificial Intelligence (AI), the Internet of Things (IoT), Robotics, Digital, FinTech and Big Data.
  • The Consumer behaviour space is moving towards a network of peers over the more traditionally corporate ones. There is a move towards access over ownership (we already see that happening in a number of vehicle manufacturers that allow their clients to pay a monthly premium, and then have the opportunity to lease or change their choice of vehicle at any point – giving them access to the most luxurious cars if they so desired). There is also a move within the Consumer Behaviour world that looks at collaboration over competition. Consumers prefer being part of a bigger picture, than being the only one holding that bigger picture.
  • The final piece of this triad of disruptors is the convergence across sectors, where a closer look is being taken at the future of Consumer, Mobility, Finance, Manufacturing and Health – and how each of those play a key role in the economy as a whole.

 

Add each of these disruptors together and you get a strategic choice being made at organisational level to capture innovation-led growth. Introducing: Mergers & Acquisitions. Deloitte suggest that execution of all of this is divided into 3 key areas:

 

Investment: Organisations are developing corporate venturing divisions as a core competency that allows them the opportunity to uncover, incubate and invest in new growth opportunities.

Collaboration: Businesses realise the power of the network, and as such, are forming close collaboration ties with a range of partners that include anyone from strong innovation players in the form of startups and accelerators, through to cross-sector companies. They realise that the power of collaboration means that they now are able to pool costs and skills, exchange ideas and foster a new organisational culture which is solidly rooted in innovation.

Acquisition: “Companies are developing a dedicated Innovation M&A strategy to acquire capabilities, products and technologies that can unlock new sources of growth and revenues. Cultural adoption will be a key driver for the successful integration of such deals,” they say.

 


So, regardless of the side of the fence you find yourself on – whether you are that startup looking to integrate with a much bigger organisation, or you’re the bigger organisation itself that is looking for it’s next opportunity to invest, collaborate with or acquire, you need the right access to get you there. CFPro Ventures bridges that gap. Call us today.


 

2017-12-19T15:04:46+00:00 December 21st, 2017|News|Comments Off on When Innovation Opportunity meets M&A and Venture Investment