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. 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 tell us about this experience, we'll be talking to Moritz, a venture architect at MVP Factory, who's been working with DB Schenker for the last two and a half years.

You'll get an inside look at their collaboration to drive new ventures, some of the challenges they faced along the way, and a glimpse at how they manage it all. Prepare to explore the highs, the lows, and some key learnings from his journey as we uncover what it takes to innovate and increase the success of ventures.

In episode one, we kick things off by defining what it means to build ventures in the corporate world and explore Moritz's role. We'll unpack the unique relationship between MVP Factory and DB Schenker and take a closer look at the types of innovation driving corporate growth today—from venture studios to corporate venture capital. We'll also dive into the challenges of setting up a successful venture unit and discuss what it takes to tailor these studios to specific needs, all while overcoming obstacles like attracting the right founders and investors.

In episode two, we'll explore how corporates like DB Schenker can leverage their brand power and resources to fuel new ventures. We'll identify 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. We'll discuss the unique challenges corporates face when building ventures and the key success factors for making partnerships between corporates and venture builders thrive.

If you're curious and interested in 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.

[00:02:00] Meet Moritz: Venture Architect at MVP Factory

Baby Jessi: So, okay, now we are definitely recording. Welcome, everyone, to the podcast. Today, we have a very special guest to talk about a very interesting topic. And yeah, we're discussing the relationship between MVP Factory and Schenker Venture Studios.

To discuss this, I'll hand it over to Moritz, who's a colleague of mine. He's been here for a long time—two years now, right?

Moritz: It's been so.

Baby Jessi: Oh my god, I remember your first day! But yeah, Moritz, could you start with a little introduction about yourself, and then we can dive into the topic?

Moritz: Sure. Thanks for having me. My name is Moritz von Ratschek, and I've been with MVP Factory for two and a half years. Before that, I studied business, innovation, and industrial management—kind of what I do now, helping larger companies and corporates innovate.

After university, I worked for different startups, building them up with founders or managing business units within startups. For example, I worked at HeyCar, a corporate venture from Volkswagen. Then I joined MVP Factory because I wanted to get back to what I studied, focusing on the early days of venture creation. I’m super stoked to be here. It’s a lot of fun with cool projects, and there’s always something new—it never gets boring.

[00:04:00] Understanding the Term 'Venture'

Baby Jessi: For those who aren't familiar with the term, how would you define "venture"?

Moritz: That's a good one. It's similar to "startup"—there's no clear definition, and it’s used across the board. People even call Tesla a startup, though that’s debatable.

If my parents ask, they’d wonder, "Is the barber shop next door a startup too?" It’s tough to explain. But how I define it is fast-growing companies that are highly scalable and often backed by financial investors. That scalability and growth are key. Tesla and SpaceX fit this definition to some extent, but they’re more hardware-first companies with factories, making them more classic businesses. A digital product, on the other hand, can scale quickly once built.

As a senior venture architect, my job is to help corporates design these ventures.

[00:06:00] The Genesis of MVP Factory and Schenker Ventures

Baby Jessi: Let’s dive into the history of the MVP Factory and DB Schenker collaboration. How did it all start?

Moritz: So, I wasn't part of MVP Factory when it all began, but I know the story. When I joined, I started working on this project from day one. It’s been the "red thread" of my time here.

David Schenker approached our CEO, Philipp, along with Patrick Hoffman and Jochen Thewes, Schenker's CEO. They wanted to be more active in the innovation space. They had an innovation management department but focused on incremental innovation. They wanted to move into venturing, which is broader. It can involve partnering with existing startups, investing in them, or building new ventures.

They asked Philipp if we could help set this up, so Philipp, Johannes, and the Schenker team designed what is now Schenker Ventures, tailored to Schenker's needs and goals.

[00:09:00] Innovation Theory and Types of Innovation

Moritz: There are different kinds of innovation. Incremental innovation focuses on small improvements to existing products and meeting customer needs. Then there’s adjacent innovation, which can involve introducing new technologies to existing customers or bringing existing technologies to new markets. These require more freedom and separate teams since the knowledge isn’t always present within core business units.

Lastly, there’s disruptive innovation, which involves new products and markets and has the potential to disrupt the company itself. That’s where the venture studio comes in.

[00:11:00] Venture Studio vs. Venture Building

Moritz: The venture studio focuses on ideas beyond Schenker's core business. Ventures in the studio are typically owned by founders, with Schenker as a key partner and early investor. Schenker may eventually buy them back if they prove valuable. This allows Schenker to stay involved without shouldering the full cost of development.

[00:13:00] Pioneering Venture Studios in Germany

Moritz: This was one of the first venture studios of its kind in Germany, combining venture building with corporate venture capital (CVC). We were pioneers, learning as we went, but we’ve seen success and created something valuable for Schenker and others.

[00:15:00] Challenges in Radical Innovation

Moritz: Radical innovation can be expensive, and it’s hard to justify investing resources if it's not directly aligned with core business goals. That’s where external investors come in—they help validate the idea and co-finance it. Schenker gets the benefit without carrying all the financial burden. The funding climate has also changed a lot recently. It’s become harder to raise funds, so we had to adjust the investment terms for founders, ensuring the venture studio remains attractive to both founders and investors.

[00:20:00] Overcoming Industry Challenges

Moritz: The logistics industry is quite traditional, and convincing established players to adopt a new digital product from an unknown startup is tough. However, Schenker’s brand and network provide valuable backing to help these startups gain traction.

[00:21:00] Conclusion and Next Steps

Baby Jessi: That wraps up part one of our two-part series on the collaboration between MVP Factory and DB Schenker. Today, we explored the foundations of building a venture studio, the role of innovation in corporates, and the challenges involved. In part two, we’ll dive deeper into leveraging brand power, finding the right founders, and ensuring success. Thanks for listening to InnoSanity, and we’ll see you in the next episode!

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.