LG and the hunt for the next-gen corporate incubator – TechCrunch

Whatever you do, LG Nova does not refer to the LG Incubator Program as a CVC.

The LG Nova is the highest point in the LG shaft, and is the company’s experimental playing field for working with startups to explore spaces in which the company has identified areas suitable for future growth. Backed by a relatively large – and rapidly growing – team and a healthy budget, LG Nova is rolling its proverbial sleeves and exploring future releases.

Below is my interview with Sokwoo Rhee, Senior Vice President of LG and Head of the North American Innovation Center – LG Nova among Friends. The interview is edited for clarity and length.

“Are we a Card Verification Code (CVC)? The answer is no. Hell no,” Rey said. “CVC, you know, is a venture capital game. Their ultimate goal is to get a high return. Because of that, they invest in companies that have the potential to increase market value. We are not that. We invest, and while we do care about the growth of companies, we look at more About how we can grow a business that we can create together.But if there is a possibility to grow the business with us, and if this company has something we need to grow our business as well, we will invest and work with them.We will do a proof of concept (POC),putting our resources behind the company.And investment Financial is only one part of that.We are much more interested in creating joint businesses and joint ventures.For some companies, we may make direct acquisitions.CVC is very much a financial game;we are more theatrical to creating a business.

“Maybe I’m tired of hearing about the metaverse every single day,” Ri laughs, eliciting a sincere nod from your reporter.

“LG Electronics is one of the biggest manufacturers of devices and so on. We’re doing very well, and we also want to look into the future, specifically areas that we think are ready for growth in the future, areas where LG doesn’t necessarily work today. LG Nova Dedicated to areas where LG wants to grow, but we’re not there yet. In the past year, we set up this center to learn what these are and grow new business in new future growth areas.”

The team came up with five different areas of focus, explicitly targeting the aspects of the market where LG can leverage its platform and ecosystem strengths while scaling its innovations. The domains are digital health, the metaverse, electric vehicle infrastructure and “smart lifestyle”. The latter is an extension of smart homes, home automation and living smarter through the power of technology. In addition, LG Nova highlights a comprehensive mandate to consider representation across all categories it serves.

“We are looking for things like helping communities and underserved products and services that can have an impact in communities to improve the quality of life,” Rey explained. Corporate innovation has happened before, but a lot of it started internally. You take a lot of R&D centers and innovation initiatives, you spend a lot of time internally in the lab creating something new, and innovating within existing structures. We’re looking at a completely different perspective – we’re doing what we call innovation from the outside in. LG Nova does not have the capacity for research and development, and this is done on purpose. We have some engineers, but we’re not going to build entirely new innovations in-house. Instead, we want to encourage external entities – startups, etc. – to propose ideas and work with LG Electronics in this new future growth area. We want to know how we can create new business together.

“When I say new business, it can mean a lot of different things. We are ready to create a new business unit if the idea, suggestions and partnership is successful.

So far, this looks like any other company incubator. However, the devil is in the details, and the LG Nova brings a lot of exciting twists to the mix of corporate accelerators. Implementing how they work with startups is much broader than the “write a check and hope for the best” and “here are some clients, good luck” approaches that many other companies take.

On stage to announce the launch of LG Nova – Sokwoo Rhee, Senior Vice President of LG and President of LG Nova. (Photo: LG Nova)

Process and benefits

LG Nova is starting to find its feet, starting with the conversion process called the Grand Challenge Program. It started with a competition launched in September, called Future Mission, which met with great interest from startups; The LG team told me it has received over 1,300 offers from over 100 countries.

LG Nova differs from many other incubators in that it does not take an institutional venture capital approach to investing, nor does it seek technology proposals. Instead, the incubator is looking for representations of how startups want to bring their products to market by capitalizing on the reach and influence of LG Electronics.

Of the 1,300 suggestions, they shortlisted 50 or so companies. At this point, each company is assigned an Entrepreneur-in-Residence (EIR) who will work with the startups to articulate ideas and put a proposal together, learning potential synergies with LG’s bigger picture strategy and the strengths and opportunities the startups bring.

Leave a Comment