CampX by Volvo Group traditionally used the term “Accelerator” as the name of one of its programs. This program aims to find an impactful match between needs and problems to solve within Volvo Group and the innovative capabilities at startups and scaleups. The end game for startups and scaleups to be interested in this program will be to become a partner or supplier to Volvo Group.
From a Volvo Group product- and business owner perceptive, in addition to finding good partners and suppliers, the value is also the learnings gained in the projects.
We now see an emerging trend among corporates to call such a program a “Venture Client” [9] While both “Accelerator” &” Venture Client” aim to foster innovation and growth, “Venture Client” is increasingly seen as a more fitting and advantageous name. Here’s why:
1. Clearer Value Proposition
The term “Venture Client” immediately conveys a clear value proposition. It signifies that the corporation is a potential client of the startup’s product or service, not just a mentor or investor [1] [2]. This direct relationship underscores the practical and immediate value that the startup brings to the table. In contrast, “Accelerator” is a more generic term that can imply a variety of support mechanisms, from mentorship to funding, without specifying the nature of the engagement.
2. Focus on Real-World Application
“Venture Client” emphasizes the real-world application of the startup’s solutions and focus on early adoption [1]. By acting as a client, the corporation provides the startup with a valuable opportunity to test and refine their product in a real market environment and on robust platforms. This hands-on approach is often more beneficial than the theoretical or simulated environments that some accelerators offer.
3. Alignment with Business Goals -
For Volvo Group product/business owners, the “Venture Client” model aligns more closely with their business goals. It allows them to directly benefit from the innovations they are supporting, integrating new technologies and solutions into their operations. This alignment ensures that the collaboration is mutually beneficial and strategically relevant. Accelerators, while valuable, may sometimes result in innovations that are not immediately applicable to the corporation’s core business.
4. Long-Term Relationships
The “Venture Client” approach conveys a potential long-term relationship between startups and Volvo Group. By starting as a client, Volvo Group can continue to support and collaborate with the startup as it grows, potentially leading to deeper partnerships or joint ventures. Accelerators, by their nature, are often time-bound and may not facilitate the client relationship to evolve and adapt based on the needs of both parties. This adaptability is particularly valuable in fast-moving industries.
5. Autonomy and Equity Preservation
Traditional accelerator programs often require equity in exchange for support, the venture client is seen as allowing startups to retain control of their company while still gaining access to valuable resources and market opportunities.
Conclusion
While accelerators have played a crucial role in the startup ecosystem, the “Venture Client” model offers a more targeted and effective approach for corporate-startup collaborations. It is easier to define value, provides stronger commitment, and better alignment with business goals, ultimately leading to more successful and sustainable innovation. By adopting the “Venture Client” terminology, CampX by Volvo Group can better communicate its role and intentions, fostering more productive and impactful partnerships with startups and scaleups.
Citations:
[1] https://www.bundl.com/articles/venture-client-model-a-winning-formula-for-corporates-and-startups
[2] https://www.wayra.de/blog/venture-client-model-a-game-changer-for-start-ups
[3] https://cryptix.ag/the-difference-between-incubator-accelerator-and-venture-builder/
[4] https://www.wearelevels.com/blog/venture-studios-vs-accelerators
[6] https://jdi.group/venture-builder-vs-startup-accelerator-vs-startup-incubator/
[8] https://www.linkedin.com/pulse/venture-builder-vs-startup-accelerator-incubator-nile-preneur-reraf
