#3: Case study - Driving value as a CVC

Hi, I'm Jeppe and welcome to my weekly newsletter on Corporate Venturing, released every Tuesday. My aim is to provide a comprehensive perspective on the latest developments in the field and its related topics, drawing from the insights of top management, venture capitalists, founders, LPs, and family offices. I aim to offer valuable information and thought-provoking content that will aid in understanding the importance of Corporate Venturing in business strategy.

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This week, I have the privilege of sharing with you a case study featuring sennder , a successful transportation and logistics company. I recently had the opportunity to interview David Nothacker , the CEO of sennder, and explore his experiences in scaling an industry incumbent while collaborating with corporates and CVCs.

With eight years of experience as the founder and CEO of sennder, David has had the pleasure of working with three prominent corporates, including Poste Italiane , Next47 (Siemens), and Scania Group . In this article, we will focus on the key factors that contribute to a successful collaboration between corporates and startups using sennder as a case study.

Scania Growth - Data sharing & culture exchange

Sennder's journey to become Europe's leading digital freight forwarder has been marked by innovative partnerships and collaborations, including with Scania, a leading global provider of transportation solutions. Scania was the first corporate investor to join the sennder investor syndicate and their commitment has been a key factor in the success of their collaboration.

A critical aspect of a successful collaboration between a corporate and a startup is the full commitment of the corporate partner. Scania's decision to invest capital into sennder speaks to their serious commitment to the venture and reinforces their belief in the company's potential for growth. Additionally, the corporate's decision to not take control over the company is a critical differentiator and a strategy that I often discuss with other corporate stakeholders. The investment highlights that Scania is actively playing the venture game and is open to inviting other investors on the journey.

The partnership between sennder and Scania has been built on mutual learning and exchange. Over the years, the two companies have collaborated on a range of initiatives, including the sharing of data to better understand the market, the exchange of employees, and the integration of their cultures. I find it particularly interesting that Scania sent employees to sennder to learn from their culture and this collaboration has been so successful that they will repeat the initiative later in sennder's journey. Additionally, sennder will also send employees to Scania for the same purpose.

Next47 / Siemenes Catalyst - Unlocking value through collaboration

Successful collaboration between corporates and startups requires a dedicated and strategic approach. When Next47 (Siemens CVC) invested into sennder, they allocated a dedicated team to work with the startup, and incentivised the team to make the collaboration a success. This approach allowed for a thorough evaluation of potential collaboration opportunities, and resulted in a committed process where Next47 would set up and attend relevant meetings to push and take responsibility of opportunities for sennder.

An example from my own career in CVC is Maersk Growth's dedicated Portfolio Management team. One of their most successful collaborations was with Einride, resulting in Maersk ordering over 300 trucks from the startup. This successful outcome highlights the importance of dedicating a team to drive value and ensure success in such partnerships.

Poste Italiane - An example of commercial collaboration

Around five years into the life of sennder, the company partnered with Poste Italiane, a move that would bring tremendous value to both parties.

Sennder's technology had scaled significantly and the company was generating revenue. However, to fully realise the potential of its technology, sennder needed a partner with an even larger volume. This partnership with Poste Italiane provided the ideal opportunity for sennder to expand its customer base and partner with a significant brand.

Poste Italiane saw the potential to increase margins and reduce costs through the partnership, while sennder gained a valuable source of revenue that would demonstrate the ability of its technology to drive margins at scale. The partnership was a win-win situation for both companies, enabling them to achieve their respective goals and objectives.

As David pointed out when I interviewed him:

It needs to be an equity investment, because otherwise the commitment won't materialise.

A mutual dedication to win-win objectives and mutual stake in the outcome will foster a productive relationship.

Corporations can bring numerous benefits to startups and scale-ups, as demonstrated in the previous examples. However, sennder's experience highlights the significance of corporate investment in driving growth and acceleration for startups.

Next week, we will delve into the topic of "Challenges and Risks of a Corporate Venture Capital (CVC)" and I look forward to sharing more insights with you. Thank you for your continued readership.

/Jeppe