Innovation Insights with CEOs: Oliver Kofler
Olivier Kofler is CEO of Carvolution, the largest car subscription platform in Switzerland. He began his entrepreneurial career right after graduating, co-founding the web agency iBROWS and leading business software Bexio. They have since been acquired by PwC and Mobiliar respectively.
Q: Having been an entrepreneur nearly your entire career, do you think innovation is key to success?
I definitely think innovation is a big key to success, but I would not say that is the only one. Luck and having the right timing all plays a role as well.
Q: There is a shift from ownership to access, particularly in the automotive industry. How do you foster innovation at Carvolution in order to stay competitive?
I believe that companies, especially startups, often turn to innovation due to internal or external pressures. For example, at Carvolution, we required a lot offunds to finance our cars. Initially we approached banks and other financial providers but were unable to fulfill certain financing criteria as we were still an unprofitable startup back then. Hence, we ended up finding our own car financing solution through a subsidiary. In such manner we constantly try to innovate our business in order to lower our costs. As a result, we are able to offer the most competitive prices in the car subscription market today.
Q: Focusing in on the topic of financing, another way for startups to obtain funding is from corporates. Do you consider corporate venturing to be an innovation driver?
In terms of innovating within an organization, I think it is a very important driver as discussed previously. However, when launching a new product or service, I am rather skeptical when it comes to corporate venturing. Looking at some of the most successful startups both in Europe and globally, most of them are independent. I believe that this is because it allows them to go the extra mile without having the constraints of a corporate.
Q: What do you think are the biggest challenges in corporate venturing?
I would say there are three main challenges engaging in corporate venturing. First, I believe that the team of an independent startup is often more motivated and driven than that of the corporate because it is within their DNA. In addition, there are other motivation drivers such as share options which are rarely seen in corporate startups. Then there is the perception of burning money. For instance, the corporate may initially plan to accept losses for the first few years, but this can easily change if there is a new management or sponsor. On the other hand, startups that are venture financed do not face this risk. Lastly, independent startups often have more freedom and flexibility in terms of how the business is operated and how it’s products or services are sold. For instance, you are much more likely to see an independent startup following an unconventional communication strategy than a corporate one.
Q: In an interview with 20 Minuten, you mentioned that startups are able to innovate faster than traditional firms. Would you say that strategic innovation partnerships between startups and corporates have become an essential innovation driver?
Yes, I think in a lot of cases it is very beneficial to have strategic relations. For example, the corporate may serve as the startup’s first client. On the other hand, the corporate can often learn from the spirit of the startup in terms of agility and trial-and-error thinking. This helps corporates to continue innovating in the future. It is however important to note that this is not always the case. From a startup point of view, you sometimes need a management team with the passion and the willingness to commit to the entire journey,
Q: What do you think are the most important factors to consider in choosing the right strategic partners?
From the point of view of a startup, I would choose a partner that could also be a client or serve as a lever to sell the product. Of course, it can also make sense to form other types of partnerships such as technology alliances. The main idea should be that the startup and corporate have complementary interests that in the end enhances the product through a systematic approach. For instance, it could be advantageous for a blockchain company to partner with an auditor, making the annual edit more efficient and less costly.
Q: What do you consider to be the key to a successful partnership?
I believe the foundation to any successful partnership is CEO involvement from both sides. In the corporate, innovation should be directly overseen by the CEO. Similarly in startups, the CEO should be actively involved in the partnership by extending his knowledge and skills to the organization.
Q: Do you have any final advice that you would give to aspiring startup founders?
I would tell them to be bold and not be afraid to go over the edge. With a startup, it’s sometimes better to take the risk and apologize afterwards than to wait and have someone else take it instead.
Interview conducted by Adi Hannah Gol
