What is Power Up?

The UK economy has proven its resilience many times throughout history. But we cannot take this ability for granted. It is critical that the UK remains competitive, that we retain our strength in innovation, and that we develop and attract the skills our economy needs so that we can achieve inclusive growth.

The Power Up series explores the critical challenges facing business, UK government and wider society. Using insights and analysis, the series looks at the pragmatic actions we can take to make a difference now, and power up the future ahead - to ensure the UK remains globally competitive, as an attractive and inclusive place in which to do business today and tomorrow. For each research piece in the series, we’ve developed a short story to bring the key findings to life and help you identify the actions your business should take. Explore the challenges through our stories and dive into the detail at any point for deeper insight into these critical issues.

If you’d like to find out more about the Power Up series or how we are experimenting with new ways of bringing insight to life, please contact Jo Ouvry, Director of Corporate Affairs at Deloitte or Jemma Venables, Head of Innovation and Corporate Insight at Deloitte.

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Corporate Venture Capital – VC Platform

Corporate Venture Capital - VC Platform

What is the deal? A venture capital platform invests in aspiring external scaleups, most likely to obtain a financial return. Scaleups benefit from funding and also from credibility by association and potential future financial support.

Best for: VCs taking multiple bets and early stage businesses who have a viable market proposition and are looking to scale up.

Works best when: The VC leverages its relationships on behalf of its innovation partner and allows its investment the time to develop into a viable business.

Reality check: Aligning objectives, culture and timelines can be difficult.

Key implementation steps include:

Make sure to define ownership of any joint venture.
Ensure that there is a clear business plan to attract investors.
Be willing to accept input from the VC, but do not let them disrupt the creative and development process.
Be prepared to respond to due diligence, timeline, and accounting requirements.

Working Capital Arrangements

What is the deal? Instead of a direct investment, a corporate becomes a cornerstone client to aspiring startups to obtain concessional pricing or strategic advantage - it's a conditional arrangement. Scaleups benefit from cash flow and credibility by association and potential support for growth.

Best for: Big businesses looking to support potential new suppliers in a lean and low risk way, and early stage businesses who have a viable product and are looking to scale up.

Works best when: The big business can have its needs met by a bespoke supplier and the innovation partner really understands the needs of the corporate.

Reality check: Aligning objectives, culture and timelines can be difficult.

Key implementation steps include:

Establish clear and arm’s length contractual relationships.
Establish clarity over pricing, as well as asset and IP issues, early.