Breaking New Ground in Corporate Innovation: "We’re building the ventures of tomorrow, today"

At MVP Factory, we are constantly pushing the boundaries of innovation, and our new MVPF InnoSanity Podcast series is designed to bring you into the heart of corporate innovation.

Each episode features insights from MVP Factory experts and industry leaders on topics ranging from venture studios to AI, product building, and strategic design. We dive deep into the strategies and challenges that shape today’s most innovative ventures with thought-provoking discussions to help you stay ahead in a rapidly evolving market.

Today's topic: The Corporate Venture Studio Model with Moritz von Raczeck, Principal at MVP Factory!

[00:00:00] Introduction to InnoSanity Podcast

Baby Jessi: Welcome to InnoSanity, the podcast where we dive deep into the exhilarating world of corporate innovation and venture building.

Overview of MVP Factory and DB Schenker Collaboration

Baby Jessi: In this special two-part series, we focus on MVP Factory's experience working with DB Schenker to build and run a successful venture studio. To share insights from this collaboration, we’ll be speaking with Moritz, a venture architect at MVP Factory, who has been working with DB Schenker for the past two and a half years.

Baby Jessi: You’ll get an inside look at their collaboration to drive new ventures, the challenges they’ve faced, and how they’ve navigated them. Prepare to explore the highs, the lows, and key lessons learned on this journey as we uncover what it takes to innovate and increase the success rate of corporate ventures.

Baby Jessi: In Episode 1, we’ll kick things off by defining what it means to build ventures in the corporate world and explore the role played by Moritz. We’ll unpack the unique relationship between MVP Factory and DB Schenker and take a closer look at the various types of innovation driving corporate growth today.

Baby Jessi: From venture studios to corporate venture capital, we’ll dive deep into the challenges of setting up a successful venture unit and discuss what it takes to tailor the studios to specific needs—all while overcoming obstacles like attracting the right founders and investors. Then, in Episode 2, we’ll explore how corporates like DB Schenker can leverage their brand power and resources to fuel new ventures.

Baby Jessi: We’ll identify what makes the perfect founder profile, highlight the importance of networks and internal buy-in, and explain why product design and founder-investor fit are crucial for success. If you’re curious about the world of corporate innovation and ventures—from strategy to execution—you’re in the right place. I’m your host, Baby Jessi, and this is InnoSanity.

Baby Jessi: Alright, now that we’re recording, welcome everyone to the podcast! Today, we have a very special guest here to discuss a fascinating topic.

Meet Moritz: Venture Architect at MVP Factory

Baby Jessi: Today, we’ll discuss the relationship between MVP Factory and Schenker Venture Studios. To guide us through this topic, I’ll hand it over to Moritz, my colleague who’s been with MVP Factory for quite some time now. How long has it been, two years?

Moritz: Actually, two and a half years.

Baby Jessi: Two and a half! It’s been a while. I remember your first day—it feels like yesterday. Alright, Moritz, let’s start with a quick introduction about yourself, and then we’ll dive straight into the topic.

Moritz: Sure! Thanks for having me, Jessi. My name is Moritz von Ratschek, and I’ve been with MVP Factory for two and a half years. Before joining, I studied business, innovation, and industrial management—basically a foundation for what I’m doing now: helping larger companies and corporates innovate.

Moritz: After university, I worked with various startups, either helping build them from scratch alongside founders or developing new business units within established startups. For example, I worked at HeyCar, a corporate venture from Volkswagen. Then I joined MVP Factory to return to early-stage venture creation. It’s been an exciting journey with challenging yet rewarding projects that never get boring.

Baby Jessi: That sounds amazing!

Defining Ventures and Startups

Baby Jessi: For listeners who may not be familiar with the term “venture,” how would you define it?

Moritz: That’s a great question. It’s a bit like the term “startup” in that there’s no universally agreed-upon definition. For instance, some people might even call Tesla a startup, depending on their criteria. My parents sometimes ask if the new barbershop around the corner qualifies as a startup.

Moritz: For me, ventures are fast-growing companies designed to be highly scalable, often involving financial investors. Typically, they’re built for rapid growth and scaling—although the specifics can vary depending on whether the focus is on hardware, like Tesla, or digital products, which can scale faster without the need for factories or other extensive infrastructure.

Baby Jessi: That’s a helpful explanation. And it definitely reflects the diversity we see in what’s labeled a “startup” or “venture.”

History and Goals of MVP Factory and DB Schenker Partnership

Baby Jessi: Let’s talk about the partnership between MVP Factory and DB Schenker. How did it all begin?

Moritz: So, while I wasn’t at MVP Factory when the partnership started, I’ve been deeply involved since day one of my time here. It all began when DB Schenker approached Philipp, our CEO, with a clear goal: they wanted to step up their innovation game. They already had an innovation management department focusing on incremental improvements but wanted to explore more disruptive and transformative opportunities.

Moritz: Together, Philipp and the team worked with Schenker to design a structure tailored to their specific needs and goals. This led to the creation of Schenker Ventures, which includes innovation management, venture clients, corporate venture capital, and two venture-building units: their internal team and us at MVP Factory.

Moritz: The structure aligns with the broader innovation theory, covering incremental, adjacent, and radical innovation. Incremental innovation involves small improvements to existing products, while adjacent innovation explores new markets or technologies close to the core business. Radical innovation, which we focus on, ventures further afield—exploring new markets and technologies that could disrupt the core business.

Types of Innovation: Incremental, Adjacent, and Radical

Moritz: As I mentioned, Schenker Ventures is structured to address different types of innovation. Incremental innovation focuses on small, gradual improvements to existing products, often managed by the business units or innovation teams. Adjacent innovation, on the other hand, involves introducing new technologies or products to existing customers—or taking current products to new markets.

Moritz: These types of innovation require more flexibility and often a different setup because the core teams might not have the expertise to explore new technologies or markets. Then there’s radical innovation, which combines new technologies and products in new markets. This is where the venture studio comes in. We look for opportunities that are further from Schenker’s core business but still within the broader logistics space, exploring new customer segments or emerging technologies that could disrupt the industry.

Innovation Management and Venture Building

Baby Jessi: How do you determine whether to pursue incremental, adjacent, or radical innovation?

Moritz: It really depends on the company’s strategic goals and market conditions. If the opportunity is close to the company’s core knowledge and customer base, it might make sense to handle it internally. But for ideas further from the core business, it’s often better to build them in separate units or even external studios.

Moritz: That’s the setup we’ve built with Schenker. Their internal venture-building unit focuses on ideas closely aligned with their core logistics operations, while our venture studio works on ideas that are further afield. The ventures we create often involve disruptive innovation and are designed to operate as standalone startups. Schenker takes a minority stake in these ventures, allowing them to scale independently with external investors and founders.

Baby Jessi: That makes sense. It sounds like having these distinct units helps balance focus and risk.

Overcoming Challenges in Corporate Venture Building

Baby Jessi: Let’s talk about challenges. What have been some of the biggest hurdles in building ventures with Schenker?

Moritz: One major challenge is ensuring the setup is attractive to both founders and external investors. In the early days, we had to figure out how to structure deals to make them appealing. For example, the original terms were €300,000 for 23% equity. While that worked for the first venture, changes in the funding climate made it harder to attract external investors. So, we adjusted the terms to take a smaller equity share, making the ventures more investable.

Moritz: Another challenge is working within a traditional industry like logistics. Many processes are still paper-based, and it can be tough to convince potential customers to adopt digital solutions from a new, relatively unknown startup. That’s where Schenker’s brand and network are invaluable—they lend credibility and open doors that might otherwise stay closed.

Baby Jessi: It sounds like the ability to adapt and leverage Schenker’s resources has been key to overcoming these challenges.

Moritz: Absolutely. Having Schenker’s support makes a big difference. They’ve provided access to experts, facilities, and even pilot opportunities, which have been crucial for validating ideas and building early traction.

Finding the Right Founders for Success

Baby Jessi: You’ve mentioned the importance of attracting the right founders. What does the ideal founder profile look like?

Moritz: There’s no one-size-fits-all answer, but we typically look for two types of founders. The first type has deep industry expertise—for example, someone with a logistics background who understands the challenges and opportunities in the sector. These founders often benefit from the studio’s support in areas like fundraising and venture building.

Moritz: The second type is experienced serial founders—people who have built startups before. They bring valuable experience and know-how but recognize the value of partnering with a corporate venture studio like ours. For example, they might appreciate the access to Schenker’s network, which helps them break into the B2B enterprise segment.

Moritz: On the tech side, it depends on the venture. For some, we need founders with expertise in data science or AI, while others require a strong background in product design. What’s most important is that the founders work well together and complement each other’s strengths.

The Role of Internal Networks and Buy-In

Baby Jessi: Let’s circle back to internal buy-in. How important is it to get the larger organization on board with the venture studio?

Moritz: It’s critical. On paper, it might seem like corporates have all the resources they need—strong brands, skilled employees, and existing customers. But in reality, getting internal alignment and motivation is one of the biggest challenges.

Moritz: You need to market the venture studio internally, celebrate successes, and involve employees in the process. It’s about building momentum and creating a culture that supports innovation. Without that, even the best ideas can struggle to gain traction.

Recap of Part One and Introduction to Part Two

Baby Jessi: That wraps up part one of our two-part series on the collaboration between MVP Factory and the DB Schenker Venture Studio. Today, we explored the foundations of building a venture studio, the unique role of innovation in corporate settings, and the challenges of setting up and tailoring these studios to attract top founders and investors.

Baby Jessi: In part two, we’ll dive even deeper into leveraging brand and resources to drive new ventures, the importance of finding the right founders, and how to ensure success through networks, product design, and founder-investor fit. We’ll also explore the critical success factors for corporate venture-builder partnerships. Thanks for listening to InnoSanity, and we’ll see you in the next episode!

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[00:25:00] Leveraging Brand and Resources for New Ventures

Baby Jessi: Welcome back to InnoSanity. This is part two of our two-part series on the collaboration between MVP Factory and DB Schenker. In part one, we discussed the foundations of their venture studio, the role of innovation in corporate settings, and the challenges of setting up a studio tailored to specific needs.

Baby Jessi: Now, we’ll take things further by exploring how DB Schenker leverages its brand and resources to support new ventures. We’ll look at what makes the ideal founder profile, why internal networks and buy-in are crucial, and how the right fit between founders and investors can make all the difference. So let’s jump back in. I’m your host, Baby Jessi, and this is InnoSanity.

Challenges and Strategies in Corporate Venture Building

Baby Jessi: Moritz, let’s pick up where we left off. When it comes to launching a new venture, how important is leveraging DB Schenker’s name and resources?

Moritz: It’s incredibly important. When you’re building a new startup, the first step is to validate your assumptions. You need to confirm that the problem you’re solving exists, that your solution is viable, and that customers are willing to pay for it.

Moritz: Schenker’s brand and network make this much easier. They provide access to experts, employees, and customers, which speeds up the validation process. For instance, we’ve conducted pilots in Schenker’s warehouses to test prototypes, get feedback, and iterate. This gives startups not only valuable insights but also a strong reference point when approaching external clients.

Baby Jessi: That makes a lot of sense. Having Schenker as a first reference must open doors.

Moritz: Exactly. Larger corporates often want to see that a product is already being used by someone reputable. Saying, “This is already used by Schenker, the world’s second-largest freight forwarder,” adds a level of credibility that would be difficult for an independent startup to achieve on its own.

Finding the Right Founders for Success

Baby Jessi: What about the founders? You mentioned in part one that finding the right founder is critical. Can you expand on that?

Moritz: Sure. In the beginning, we thought we’d primarily attract industry experts—people with deep knowledge of logistics but no prior startup experience. These individuals benefit from the studio’s support, particularly in areas like fundraising and venture building.

Moritz: More recently, though, we’ve seen interest from experienced founders—people who have already built startups but recognize the value of partnering with a corporate venture studio. They appreciate having access to Schenker’s network and brand, which helps them break into the B2B enterprise segment more quickly. It’s a win-win situation because these founders bring a lot of expertise and credibility, which is also attractive to venture capital investors.

Baby Jessi: And what about the technical side? How do you match tech founders to ventures?

Moritz: It depends on the nature of the venture. For example, if it’s an AI-driven solution, we look for someone with a strong data science background. If it’s a SaaS product, we might prioritize product design expertise. The key is to ensure that the tech founder complements the business founder, which is crucial for the venture’s success.

The Importance of Internal Networks and Buy-In

Baby Jessi: Let’s talk about internal buy-in again, especially with a large organization like DB Schenker. How do you get everyone on board?

Moritz: It’s a challenge, but it’s essential. Even though the CEO supports the venture studio, that doesn’t mean every department automatically gets on board. You need to convince individuals at every level—middle management, frontline employees, everyone.

Moritz: Internal marketing is crucial. You have to celebrate successes, highlight the value of the ventures, and show employees how their support contributes to the company’s goals. It’s also about finding champions within the organization who are willing to advocate for the studio and help connect the dots.

Baby Jessi: So it’s a lot of relationship-building?

Moritz: Absolutely. It’s about understanding who makes decisions, how to engage them, and how to align the studio’s goals with their individual objectives. Without internal buy-in, even the best venture ideas can struggle to take off.

Recap of Challenges and Opportunities

Baby Jessi: Looking back at the last two and a half years, what would you say are the key success factors for partnerships like this one?

Moritz: First, you need to design the studio to align with your strategic goals. If you want to attract venture capital investors, for example, you need to structure the studio and its ventures in a way that makes them investable.

Moritz: Second, internal buy-in is critical. You have to motivate the organization to support the studio and create a culture that embraces innovation.

Moritz: Third, having the right partner makes a huge difference. A partner like MVP Factory brings expertise in venture building and validation, which complements the corporate’s strengths.

Moritz: And finally, you need to stay agile. Market conditions change, founder profiles evolve, and funding climates shift. Being flexible and willing to adapt is key to long-term success.

Final Thoughts and Future Insights

Baby Jessi: Well said. It’s clear that building a successful venture studio is both an art and a science. Any final thoughts or advice for listeners?

Moritz: I think the main takeaway is that venture studios can work, but they require the right setup, the right people, and the right mindset. It’s not about jumping on a trend—it’s about understanding your goals and designing a solution that fits. And if you’re interested in learning more, we’ve published a whitepaper on this topic, which you can download from our website.

Baby Jessi: That’s a great resource. Thank you so much, Moritz, for sharing your insights. This has been a fascinating conversation, and I’m sure our listeners have learned a lot.

Moritz: Thanks for having me, Jessi. It’s been a pleasure.

Baby Jessi: And that’s a wrap for part two of our series on the collaboration between MVP Factory and DB Schenker. If you have questions or want to learn more, check out the links below or reach out to Moritz directly. Thanks for tuning in to InnoSanity, and we’ll see you in the next episode!

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You can learn more about the venture studio model, the various types, and how can companies leverage it for market leadership in the exclusive MVP Factory Whitepaper.