Managing Partner and CEO, Cambridge Capital and BGSA. Leading advisor and investor to supply chain and tech companies.
Is innovation more successful inside corporations, or stand-alone? The private equity industry began with the simple premise that managers work harder when they have ownership and accountability for their businesses. In the 1980s, firms like Blackstone, KKR and The Carlyle Group built fortunes by acquiring carveouts. Today, a new twist on an old idea is the technology spin-out. Great Dane is launching FleetPulse is an independent company, fueled by $11 million of venture capital led by Four More Capital. FleetPulse is focused on telematics to digitize trailers. Will we see more spin-outs from other large transportation companies? #logistics #supplychain #investment https://lnkd.in/ed33svtG
Matthew Leffler
2mo
I suspect yes. Many firms that seek to innovate realize the challenge of aligning core competencies with new technologies. Telematics is a hyper competitive business, & not something that can be easily home-grown. That said, time will tell if fleets & other OEMs will support the stand-alone business.
Robert Napoli
2mo
Benjamin Gordon, Fascinating shift toward tech spin-outs. It's about agility and innovation.
Tony English
2mo
An interesting point Ben
Supply Chain and Logistics Executive
2moI'd say yes. Innovation within an institution places parameters, either intended or unintended on growth. Resource constraints, roadmap, and internal political infighting are just some, but all aspects that hamper new technologies from making impacts. More business units will be spun off when they diverge significantly from the institution's direction. Can they stand on their own? That's the big question.