On March 19, the annual Technology Day of the Munich Network took place for the 8th time. This event is one of the key events for the German VC scene. In line with a recent trend in Germany, this year’s conference focused on Corporate Venture Capital (CVC) and accelerators (conference program – in German language).
My background is in the IT industry, where – at least from a global perspective – CVCs traditionally are not the dominant force, since there is a lot of capital available from independent venture capital firms. Therefore, it was quite a surprise for me to see how important CVCs have become in other industries and in the German venture funding scene.
Here are some highlights I took away from the conference.
In my previous blog post I highlighted that digital business models have a fundamentally different cost structure than most traditional models – with a key difference being the low cost of revenue. Low cost of revenue in turn means low marginal cost, i.e. once everything is up and running, it doesn’t cost much more to serve additional customers.