Episode 4: From Spark to Summit: Inside Day 1 of the 2025 CVC Open Innovation Summit

In this episode of Inside CVC, hosts Steve Schmith and Philipp Willigmann explore the origins, purpose, and outcomes of the CVC Open Innovation Summit in Miami. Philipp shares how a dinner conversation in 2023 sparked a movement to create a trusted, high-impact environment for CVC and innovation leaders—culminating in a summit designed by CVCs, for CVCs.

Listeners will hear how this unique event came together, what made it different, and why it resonated with corporate investors, policymakers, academics, and startup founders alike. Topics include:

• The grassroots story behind the summit’s creation
• Insights from organizing partners like BorgWarner, Bosch, and Mitsubishi
• Takeaways from Bank of America’s economic outlook keynote
• The growing role of AI, venture clienting, and C-suite alignment in innovation strategy
• Regional investment trends in Africa, India, South Korea, and Latin America

This episode sets the stage for a broader conversation about the ecosystems, tools, and leadership perspectives shaping corporate venture capital today—and tomorrow.

Brought to you by UPath Advisors.
Inside CVC: Insights that shape tomorrow.

Transcript

Hey, Philip. Hey, Steve, how are you doing? I'm doing fantastic. It's good to hear from you. Really excited about today's episode and our next episode. We're going to be spending the time delving into the two-day agenda that was the CVC Podcast Open Innovation Summit in Miami. We're going to be hearing from you in terms of the origin of the program. It's really going to be an exciting couple of episodes. Yeah, I mean, creating and hosting the summit has really been an exciting journey. It's been the second time around, but it was very personal to me to bring this group together in Miami again and also have the team from UPath, but especially the corporate partners come together and truly create an event from CVCs for CVCs. I can't wait to share a bit more with our audience about the summit and hopefully have a few of you guys join us next year. Absolutely, my friend. With that, let's get into it.

Welcome to Inside CVC, a podcast series exploring the latest trends, business issues, and geopolitical disruption and uncertainty impacting the business of corporate venture capital. I'm your host, Steve Schmidt, and along with fellow host Philip Willigmann, we're bringing together leaders in corporate venture capital, entrepreneurs, traditional venture capitalists, educators, and leaders in public policy to talk about how vast ecosystems of partners, from corporations to startups, are working together to drive and scale cross-border open innovation. This show is brought to you by UPath Advisors, specializing in corporate innovation and strategic growth and helping bridge the gap between corporations and startups in ways that drive sustainable growth. To learn more, visit upath.com. That's the letter U hyphen path dot com. Inside CVC: Insights helping shape tomorrow.

Okay, Philip, let's start today's conversation by describing what the annual CVC Open Innovation Summit is. How many years have you hosted it? What's the inspiration? What's the purpose? All of those good things.

This whole thing started back in 2023 when a group of heads of corporate venture capital and open innovation sat together at a small dinner talking about some of the challenges and politics we are facing in our day-to-day—dealing with the board, dealing with the C-suite. Most of us either report to a chief strategy officer, chief financial officer, or CTO. Typically, CEOs love to spend a lot of time with innovation and the CVC teams, so there are a lot of stakeholders, and very high-profile ones. And we said there's really no platform out there where you can come together in a trusted environment. So that was the first spark for the summit. Additionally, most of us are actually on the East Coast or in the Midwest, specifically in manufacturing and the industrial space, and a lot of events always take place in Silicon Valley. Nothing against Silicon Valley—it's definitely a cradle of innovation, a super powerhouse—but we felt like, why do we always have to travel there when we would like to spend some time in a trusted environment and build strong connections between some of the most influential leaders in corporate venture capital and open innovation?

So, bringing a few people together, having some conversation, it was essentially Daniel Kennel from BorgWarner and myself—we said, let's do it. We spoke to our friends at Danaher Ventures as well as at Bosch, and they were like, yep, we are in. Let's actually put an agenda in place where we talk about the challenges we have in our day-to-day, share some lessons learned, how we can support each other, and tackle some of the big topics—not just typical one-person presentations, but actually having working sessions and knowing everybody in the audience could easily be a keynote speaker at any other event because the level of experience and backgrounds of each of the leaders we have is just remarkable. And here we go—we had the first summit in 2022 hosted in Miami, and just a couple of weeks ago, we came out of the second summit, and that's how it all came together.

You talked about the working sessions when people walked away from the audience. It was my first time there experiencing it, and I like to say everybody needs a good whiteboard session—not only the creativity and the dialogue and collaboration that comes from that. I think there were at least six, maybe as many as nine or twelve. I don't remember exactly how the groups were defined or divided over the two days, but I thought it was interesting seeing so many whiteboarding sessions going on at the same time, how everybody was engaged, and the different companies and roles each individual played in these groups. Really engaging stuff.

Yeah, one of the key components was to make sure that this isn't just a summit or event where people come together and sit there and say, "Okay, that was nice." We really want to ensure we can work together as leaders in this space, shape some of the agendas. Some of the topics we bring are critical for all of us on this planet—sustainability, climate, artificial intelligence, geopolitical topics that are getting tougher. That's the focus of the sessions, and working together is the only way to debate and develop perspectives and opinions on how to move forward.

Speaking of working together, you mentioned some of the partners, Daniel and BorgWarner. We hope to have Daniel on as a partner in creating the forum and the summit and talking about what his company is doing in the CVC space. Talk about some of these partners who were very prevalent and on full display and contributed a ton of content to the two-day agenda.

It's really not one of these highly produced events. It's organized by CVCs for CVCs. Without the partners, this event would not have been possible. All of us afterward said it was quite a lot of work given that we all did this in evenings and weekends, as it's not our day job. Our partners—BorgWarner, Bosch, Mann & Hummel, Mitsubishi, and Vatsco Ventures—all did an incredible job thinking through the agenda, discussing the issues we want to address, and creating value for this group. That organizing committee hosted the summit in Miami. Initially, we were concerned about getting sponsors again, but we were overwhelmed by support from our sponsors—Bank of America, KPMG, Greenberg Traurig, the University of Miami, the City of Miami, Mintz, GlassDollar, and the state of Florida and the Beacon Council, ensuring we come back next year. That's part of the secret sauce to make this happen.

And I have to say, I'm very honored that the team trusts me to be part of the group, especially since I'm not currently leading a CVC myself, though I'm working with a few CVCs in board roles. It was a tremendous honor to put this together and organize this event.

I think the participation from policymakers and economic developers representing the city of Miami, Miami-Dade County, and the state of Florida highlights the importance and need for the types of conversations we had at the summit. They were an integral part of the second day's agenda, and we'll talk a little more about what those policy and economic development leaders brought to the table. Some of the companies supporting the event are truly synonymous with innovation and partnership, creating a terrific lineup. That sense of camaraderie and partnership was clearly on full display.

So, why don't we dive into a bit more detail about day one? Unfortunately, we don't have time to cover everything, but day one kicked off with an amazing point of view that set the foundation for conversations over the two days. Talk to me a little bit about that first session and what was on the agenda.

Day one started off incredibly well, and I couldn't be more thankful to Sean Hoyer from Bank of America. His talk really stood out, especially based on the feedback we received. He gave a comprehensive overview of venture markets, financial markets, and the economic outlook, challenging the audience to rethink how CVCs can be utilized, the role of secondaries, and timing investments in certain areas. I really hope Sean will join us on the show to share some of his insights with our audience.

Additionally, one of the visions Daniel and I had last year was the importance of including senior leadership—those we report to—in our discussions. Therefore, we put together a C-suite panel featuring chief strategy officers, CFOs, and chief technology officers. They discussed why they're involved in corporate venture capital, open innovation, and venturing in general, as well as how these efforts align with broader enterprise strategy for transforming corporations. One of the standout moments was hearing from my former boss, the chief strategy officer at Wontia. He clearly outlined how strategy is not just structural but crucial for driving long-term alignment and value, emphasizing the importance of investing in ventures and innovation.

We also introduced a very interesting topic—the venture client model—which is common in Europe. In the U.S., it's typically thought of more as partnerships between ventures and corporates. It was fascinating to hear how many partnerships and proof-of-concept projects are taking place across major organizations in attendance. Additionally, we discussed innovations in software solutions provided by companies like GlassDollar, which are helping to drive efficiency and scalability.

We had a panel focused on artificial intelligence as well, which took place in the afternoon. It was great to have Sahil from You.com discuss advancements in language models and their applications, along with Professor Yelena Yesha from the University of Miami, who detailed how AI is reshaping workflows and transforming businesses and processes as we know them today. It was truly a fascinating discussion.

Maybe let me pause here, Stephen, and hear your thoughts. It was quite a lot of ground we covered on the first day.

Absolutely, it was. What stood out to me was the diversity of roles represented, truly embodying that ecosystem mentality and strategy. Going back to Sean’s opening presentation, it really highlighted the importance of understanding the current global economic outlook, geopolitical risks, and the significant disruption and uncertainty we face—yet also underscored the abundant opportunities for innovation and investment.

One thing that particularly interested me, and which I discussed further with Sean after his session, was his perspective on what constitutes a "normal" CVC environment. He pointed out explicitly during his keynote that we're currently not in a typical CVC environment, which I found intriguing.

Another compelling session for me, Philip, was the C-suite panel discussion that followed. You already touched on this a bit, mentioning some of the companies and senior leaders who participated. Having a chief technology officer, chief strategy officer, and others together showcased a diverse group of perspectives. It reminded me of something J. Carl Ganter said in our first interview about responsibility within a corporation for addressing critical risks—such as those related to water—and the notion that this responsibility spans the entire C-suite: the CFO, strategy officer, technology officer, and operations officer.

Reflecting on his comments and considering the panel's diverse roles, it really demonstrates that successfully executing a corporate venture capital strategy requires insights and perspectives from multiple points of view across the C-suite. At least, that was my main takeaway.

Talk a little bit more about why you included this panel and your perspective on that conversation.

Of course, Steve. The reason we included this panel was to hear directly from senior leadership about why they sponsor these activities. It was also about demonstrating the diversity in how each corporation approaches corporate venture capital and open innovation. There isn’t a one-size-fits-all solution; it really depends on each organization’s unique transformation journey. Regarding investing and operating a CVC, it was highlighted by someone from SK that it’s crucial to adopt a long-term perspective. Decisions cannot be made quarterly or shift frequently—an issue we unfortunately observe among leaders less familiar with this space. For me, the fascinating part was really seeing the diversity in approaches adopted by Fortune 500 companies, and how their chief strategy, financial, and technology officers approach these initiatives.

One of the sessions explored a topic I'd never heard of before. In fact, I recall reviewing the agenda on my way down and preparing for those conversations—I even asked you directly about it—the venture client model.

You've talked about it a little bit already in this episode. You mentioned it briefly in our last episode, but you've said something twice in those references, and rather than define what it is again, you've mentioned twice that it's a model very common in Europe. I'm curious about where we are in terms of adopting this model in other parts of the world, and perhaps why it hasn't been widely adopted elsewhere. It sounds like it's an established model in Europe, and I'm curious—why only Europe, and what's the catalyst behind expanding this approach?

I think it's a great question, and I don't think it's only in Europe. If we talk about venture clienting, it's really just the way it was introduced broadly in the European or the German market. Personally, I executed the first venture clienting projects back in 2008 and 2009 between European ventures and corporations in Korea and Japan. Back then, we just referred to these as partnerships. In my work in the U.S. with some corporations, they've been engaging in partnerships with startups for many, many years. I think the term "venture clienting" simply defines and gives more precision to this practice, as there are ways you can leverage technology and software solutions to make it extremely efficient and transparent—creating a clear view into the organization, identifying problems to solve, and connecting these problems with venture solutions. That's essentially what venture clienting is all about.

From our discussions involving both European and U.S. corporations, we've learned that this approach has been around for a very long time. In the U.S., there's a high volume of these projects and proof-of-concept initiatives taking place. It's more a difference in approach and supporting solutions than an absence of venture clienting in the U.S.; they simply use different terms.

Certainly, the term "ecosystem" has been used in our conversation and was an important theme at the summit. Overall, when discussing CVCs and the symbiotic relationships with businesses they invest in, it was particularly interesting that the panel discussion included both established corporations—with senior leaders—and the CEO of a startup. Why was it important to create that dialogue on the conference agenda, and what did you want the audience to take away from that conversation?

Well, on one hand, the summit is truly only for CVC and open innovation leaders, but we also aim to bring in a wide variety of speakers where it makes sense. The rationale was to showcase the agility and power of innovation. The founder of GlassDollar demonstrated how processes, solutions, and tools could create partnerships between startups and corporates in a very fast, simple, straightforward way, making the entire process much easier. Having this conversation and hearing how large, established corporate innovation units approach partnerships—and contrasting that with startup perspectives—opened up the discussion nicely, setting the stage for deep dives in working groups.

Unsurprisingly, AI was a topic on both days and even came up in J. Carl Ganter's conversation and in my conversation with him in episode one. What were some of your AI-related takeaways from this year's summit? It certainly arose in multiple contexts—on the conference agenda, within working groups, and during networking conversations. Reflecting on these AI discussions at the summit, what were some things that interested you most?

First, having the AI-focused panel was terrific. It included one of the leading professors in artificial intelligence from the University of Miami, a founder who previously collaborated with Salesforce's Chief Science Officer and is now developing an advanced solution to rival ChatGPT with U.com, and experienced corporate venture capital experts—some of whom helped pioneer corporate venture capital. The panel was fantastic, highlighting two main areas: how AI can enhance innovation and corporate venture work, and investing in AI companies.

The most interesting conversations revolved around how AI could improve or be utilized in innovation and venture processes. There was considerable debate: some attendees actively embraced and leveraged AI, while others urged caution, particularly in decision-making processes. Key concerns included adoption strategies, resistance, security risks, and limitations around current models. The quality of AI-generated outcomes was also questioned. The team from U.com provided valuable insights into future trends, suggesting significant growth ahead. Companies like GlassDollar, Hatchers, and Fast also showcased AI-powered language models designed to streamline venture processes.

The overarching message was clear: CVCs and innovation units must lead their corporations in driving AI adoption—not only through investments but also by exemplifying its effective use in driving transformation. Those were my primary takeaways.

I'm by no means an expert; as a layman, I learned a great deal by simply listening to the conversation. Given how rapidly the AI space is evolving, I have no doubt we'll host more AI experts sharing their insights on future episodes of Inside CVC.

Let's close today's conversation by discussing ecosystems, a phrase mentioned several times today. There are numerous perspectives—ecosystems of companies collaborating, ecosystems within skill teams. Specifically, the final panel discussed ecosystems through a geopolitical and regional lens—a critically important topic we previously explored deeply with Ben regarding tariffs. What were some key highlights and insights from that closing conversation on day one?

To be honest, although I frequently work between Asia, Europe, and the U.S., I initially had some doubts about this topic. However, our co-host team strongly advocated for it, and I'm glad we included it. Emerging venture markets are rapidly rising, driven by factors such as returning STEM talent, digital infrastructure growth, and overall market expansion.

The panel featured representation from Africa, South Africa, India, South Korea, and Latin America. A major takeaway was that each region requires a tailored approach, as each market is at a different life stage in its venture ecosystem development. Strategies that succeed in Europe or the U.S. don't necessarily translate directly to markets like South Korea without substantial localization efforts.

For Africa, the advice was clear: without local personnel, it's vital to co-invest and collaborate with local VC experts. Markets such as South Africa, Nigeria, and Kenya are maturing rapidly with significant talent.

Regarding India, despite governance complexities, taking an LP position in an India-focused fund is advisable as it provides crucial access.

South Korea, already a tech powerhouse with strong government support for exporting ventures, nonetheless presents genuine cultural and language barriers, requiring effective local partnerships.

In Latin America and Brazil, focusing initially on strong proof-of-concept initiatives was recommended. Fintech, e-commerce, and retail are particularly strong sectors there, although legal complexities and country-by-country variations require careful navigation.

Common pitfalls include overestimating network strength, neglecting pilots, misunderstanding valuations, and overlooking governance structures. The key to success involves phased approaches, local advisors, and flexible governance.

Ultimately, the future lies in co-creation. Corporations worldwide must shift from simply exporting capital to actively building local ecosystems. For those willing to take that approach, vast opportunities await in emerging venture ecosystems globally.

That's it for today's show. You can catch Inside CVC on your favorite podcast platform or by visiting u-path.com—that’s the letter U-hyphen-path dot com. Thank you for joining us on Inside CVC: insights that shape tomorrow.