From Vision to Velocity: The past, present and future of the BMW Startup Garage.

Our first edition takes us back to the beginning in 2015, when the BMW Startup Garage was founded - and with it a new, groundbreaking corporate venturing vehicle was invented: the Venture Client Model. Fast forward to today: it is now an industry standard with other corporates such as Bosch and Siemens also using it. But back in 2015, there was only one. It was the beginning of a new era and together we’ll travel back in time to uncover the inspiring story of how the BMW Startup Garage started and how it has evolved over the past eight years.

Revving up Innovation: The BMW Startup Garage’s Inspiring Journey?

Picture this: It's 2015, and BMW is determined to harness cutting-edge technology that can revolutionize its operations. But how can they leverage the latest innovations quickly, efficiently, and without too much risk? Enter the BMW Startup Garage and our Venture Client Model, a game-changer in the world of corporate venturing.

The Birth of the BMW Startup Garage: A Pioneering Approach

Gregor Gimmy and Matthias Meyer, the masterminds behind the BMW Startup Garage, recognized a golden opportunity in 2015 to transform BMW's operations using the immense potential of startups. "The corporate venture capital model didn't appeal to me because it lacked scalability. You'd have to invest millions in each of the three or four startups, making it capital intensive and risky," Gregor explains. "That's when I thought, let's establish a process where BMW acts as a client that buys startup technology. After all, if you want to benefit from an invention, you must use it, right?"

Embracing change and collaboration?

Implementing this risky approach wasn’t a smooth ride, but BMW’s culture of embracing change and trusting its people paved the way for success. The Startup Garage quickly became a buzzing hub of collaboration between startups and BMW, propelling innovation forward.?

Throughout the journey, Gregor and Matthias also championed change within the organization. Gregor vividly recalls the initial workspace for BMW Startup Garage, describing it as “standard meeting rooms” that failed to reflect the vibrant and innovative culture he envisioned. Undeterred by budget constraints, he sought talented designers to breathe new life into the space. Luckily for him, positive reactions from people validated the transformation. “At this point, nobody could find fault in it any longer”, he recalls with a smile.

Scaling and Impact: Expansion of the BMW Startup Garage

After Gimmy, Bernhard Schambeck took the reins of the BMW Startup Garage and steered it towards remarkable growth and scaling. Under Bernhard Schambeck’s leadership, the BMW Startup Garage’s program was professionalized and rolled out company-wide. The number of proofs-of-concept (POCs) increased from a modest seven per year to over 30 annually. Bernhard also tackled the adoption challenge during his five years as Head of: transferring startup solutions from a successful pilot phase to series production, leading to tangible business impact for BMW’s products, processes, and systems.

Under his visionary guidance, the BMW Startup Garage achieved another noteworthy feat at the prestigious IAA Mobility event in 2021. Central to this accomplishment was the 360° Sustainability Challenge, a six-month campaign spearheaded by the BMW Startup Garage. This challenge provided a platform to identify innovative startups with the potential to revolutionize sustainability in the automotive industry. The Garage's presence at the event extended beyond the challenge, with an impressive expo showcasing ongoing sustainability projects in collaboration with leading startups. This expo served as a tangible demonstration of the Garage's ability to foster impactful collaborations and solidified its position as an indispensable component of the BMW Group's ecosystem.

Adapting in Times of Crisis

As the first corporate Venture Client Unit globally, the BMW Startup Garage faced the challenges of treading an uncharted path. "There was no blueprint to follow, but being first-movers, combined with the BMW brand, made our program immensely appealing to startups," says Schambeck.?

He took charge amidst the global upheaval caused by the COVID-19 pandemic, and surprisingly, it had a more positive than negative impact on their operations. "After the initial shock, we immediately got back to business," Schambeck recalls. The crisis served as a catalyst for digitalization, leading them to integrate various collaboration tools into their enterprise IT systems. While face-to-face meetings posed challenges, the Garage persevered in navigating the new virtual landscape.

A Legacy of Success

Throughout Schambeck's tenure, numerous highlights punctuated the journey of the BMW Startup Garage. Yet, when asked to recall a personal highlight, he humbly admits that it is the overall achievement and impact of the Garage that fills him with pride. Recalling the remarkable growth of the BMW Startup Garage, Schambeck reflects, “If I look back now, I see a well-established Venture Client Unit within the BMW Group, with international hubs across the globe, providing impactful startup innovations to all BMW business units. I am happy that I could contribute and be part of this success," he states with satisfaction.

Now, with Schambeck passing the torch to his successor, Bernhard Horst, the adventure of the BMW Startup Garage continues. Horst initially had his doubts about working with startups but was captivated by the inspiring environment and the success and impact of the BMW Startup Garage. "My first Startup project fascinated me more than expected. I worked with extremely ambitious and cool startups from different countries alongside my motivated BMW colleagues, and we ended up with a remarkable success story capturing even the attention of Oliver Zipse," Horst reflects.

Although he moved to a new role, he says he couldn't completely detach himself from startup issues and found himself consulting his old project team frequently. "So I could not believe my ears when I was asked to take over the position as Head of BMW Startup Garage," Horst recalls.

According to Horst, the BMW Startup Garage is more than just a program or a team, it’s a well-established startup ecosystem within the BMW Group. "Our roots and experience in working with startups date back to 2016, so we have gained a wealth of knowledge and have a multicultural team spread across the globe and various business units. We have also established a well-regarded startup program that enables startups to showcase their solutions to BMW's business units," says Horst.

When asked about balancing the startups' need for speed and agility with a risk-averse culture of a large corporation like BMW, Horst says understanding is key. "Well, it's like in a marriage. You have to learn to understand the other side. With each startup, the process starts from the beginning to establish a good relationship. Also, with each new project, you gain new insights," he states.

Embracing the Future & Driving Innovation Forward?

Looking to the future, the BMW Startup Garage has ambitious goals. They aim to expand their reach, exploring uncharted regions, forging new partnerships, and embracing emerging technologies. The transfer process into series production requires refinement, and the Garage is committed to improving its approach. The journey of the BMW Startup Garage is a testament to BMW's commitment to revolutionizing corporate venturing and creating a vibrant ecosystem where startups and BMW thrive together.

So, the next time you spot a sleek BMW on the road, remember that behind the scenes, the BMW Startup Garage is driving innovation and shaping the future of mobility.

The Startup Compass: Navigating the BMW Startup Garage

Startup Advice of the Month - by Bernhard Horst:

"Be honest, be realistic, don′t be afraid of big organizations…learn to understand them! Bring problems onto the table and we will find solutions together!"

News

Gaming on-the-go! - BMW Startup Garage enables successful partnership between BMW Group & AirConsole.

Thrilled to announce our instrumental role in facilitating the partnership between BMW Group and Swiss startup AirConsole. Thanks to our proven Venture Client model, the partnership was lightning-fast, turning AirConsole's prototype into a BMW series feature in record time! Now, BMW drivers and passengers can enjoy an unparalleled in-car gaming experience with AirConsole's innovative solution. Catch all the exciting details in our latest press release here !

Stay tuned for more editions of Start Up & Drive, where we'll keep you in the fast lane of automotive innovation. Let's keep the engines revving!

Learn more about us and what we do at: www.bmwstartupgarage.com