BCG: Corporate Venturing gaining popularity again

10 December 2012 Consultancy.uk

‘Corporate Venturing’ is a growing trend among large organizations. After years of shrinkage, the expansion of the corporate venturing market has returned to the level of 2005. This is concluded by The Boston Consulting Group (BCG) in the report ‘Global Corporate venturing’.

Corporate Venturing

Corporate Venturing is defined as a process by which large organizations invest in small external parties like innovative start-ups or specialized enterprises.  Organizations use corporate venturing not only for the financial profit, but also to expand their R&D effort, penetrating upcoming markets and gaining access to new technologies.

Technology sector at forefront

According to the consultants of BCG, the technology sector is most active in Corporate Venturing. 70% of large technology concerns invest risk capital in innovative ideas of external start-ups. Five years ago only 50% was involved with this kind of investments. The pharmacy industry is listed second with 63% of active firms (five years ago 50%).

BCG - Corporate Venturing

Furthermore, this industry is followed by the telecommunication industry (with a growth from 37% to 57%) and the media industry (from 27% to 50%). In the car industry the number of firms applying a Corporate Venturing-strategy rose from 26% to 33%. The consumer goods sector showed a growth from 13% to 30%, and in construction, activity doubled from 10% to 20% of the firms.

R&D fallen by the wayside

Increasing investments in external partners logically go hand in hand with cutting own budgets for research and development.  For example, the strategy advisory firm calculated that in-house R&D budgets have dropped in the past five years with 1,5% in pharmacy and 0,5% in the technology sector.

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Digital consultancy Vendigital receives funding from Livingbridge

03 April 2019 Consultancy.uk

Vendigital, a global consultancy based in London, has secured a major investment from private equity firm Livingbridge. The news comes as the latest chapter in a succession of funding packages Livingbridge has handed the growing UK consulting sector.

Operating from hubs in Europe, America and Asia, Vendigital specialises in advising corporates and other organisations in supply chain structuring and optimisation, as well as cost reduction and procurement strategies. Its technology team also helps businesses develop bespoke systems to harness big data and drive organisational value. Operating in the field for almost two decades, the consultancy helps clients optimise operations to unlock untapped margins, ensuring a cost advantage to win more business and leverage new technology.

Headquartered in London, with additional offices in Hong Kong and Chicago, Vendigital also hosts an in-house Data Science lab, which provides bespoke solutions which streamline data collection and analysis to produce actionable insights. Thanks to its expertise, the firm has enjoyed bullish growth, and was ranked by the Financial Times in the UK’s Top 25 Leading Management Consultancies in 2019. Vendigital will likely see demand spike further as it was recently crowned a winner at the annual MCA Awards, scooping the prize for Commercial Excellence for its work with Spectris.

Digital consultancy Vendigital receives funding from Livingbridge

In order to cater to its increasing client base, Vendigital has secured funding from private equity firm Livingbridge. Global dynamics such as increasing M&A activity and accelerating digital disruption have put tremendous pressure on cost, efficiency and operating models. Livingbridge’s investment will be used by Vendigital to take advantage of this rapidly-growing market, both organically and through acquisitions, to further develop its international presence, as well as further expanding its employee headcount.

Dominic Jephcott and Roy Williams, co-founders and Managing Partners at Vendigital, remarked, “This is an exciting time for the business. Livingbridge is the ideal investment partner for us with a successful history of supporting organisations with ambitious growth plans. We’re looking forward to continuing to build on our position as a leading technology-led consultancy while growing our team and increasing our global footprint.” 

The deal sees Livingbridge add to the growing number of consulting firms it has invested in. With the UK consulting market remaining one of the strongest growing elements of Britain’s economy, Livingstone took a minority stake in Efficio in 2015, returned Broadstone Group to independence in 2016, and backed Catalyst Development in 2017.

Commenting on the firm’s latest deal in the sector, Matt Upton, Partner at Livingbridge said, “We are delighted to announce our investment in Vendigital. At a time when the C-Suite is under increased pressure to drive down costs, improve efficiencies, and create strategic value across their entire operating model, Vendigital stands out with its proven track record and innovative solutions.”