Manufacturer - Venture Studio
TURN8 designed and operated a venture studio for a Fortune 1000 industrial manufacturer, building and launching digital ventures adjacent to its core hardware business.
Challenge
A Fortune 1000 equipment manufacturer wanted to build new digital businesses adjacent to its core hardware offerings:
• Connected tool platforms, including IoT-enabled equipment, with data analytics.
• Jobsite management software with workflow optimization for construction and manufacturing.
• Marketplace for equipment rental and services.
• Digital training and certification platforms.
Key Constraints:
• Hardware DNA: Corporate culture deeply rooted in physical products with limited digital expertise.
• Speed imperative: Startups launching competitive digital solutions while the corporate world moved slowly.
• Internal skepticism: Previous digital initiatives had failed to gain traction.
• Organizational complexity: more than 20 business units, unclear ownership of digital strategy.
TURN8’s Approach
Phase 1: Venture Thesis and Prioritization
• Conducted workshops across business units to map opportunities.
• Analyzed over 50 competitive digital solutions in the industrial sector.
• Prioritized three venture opportunities: connected tools platform, jobsite management app, and equipment marketplace.
• Secured executive sponsorship and dedicated capital allocation.
Phase 2: Studio Setup and Team Building
• Recruited three entrepreneurs-in-residence (EIRs) with software and digital backgrounds.
• Established a venture studio as a separate entity with operational autonomy.
• Created a governance model balancing independence with corporate oversight.
• Secured access to corporate assets, customer relationships, and distribution, manufacturing capabilities.
Phase 3: Venture Building
• Built an IoT retrofit solution for the existing tool lineup, piloted with 10 enterprise customers.
• Developed a workflow app for construction teams, launched with five general contractors.
• Created a peer-to-peer rental platform, piloted in three metro markets.
• Hired venture-specific teams with 15 employees total across three ventures.
Outcomes
Venture Portfolio
• Three ventures launched with MVPs in the market.
• Secured more than 30 enterprise pilot customers across ventures.
• $2M in early revenue achieved.
• 15 employees hired, including roles in product, engineering, and sales.
• All three ventures are ready for Series B fundraising.
Key Learnings:
• Separation critical: Studio autonomy enabled speed impossible within the corporate structure.
• EIR model worked: External digital entrepreneurs brought credibility and capability that the corporation lacked.
• Asset leverage differentiated: Access to corporate customers and distribution, separated into separate ventures, set pure startups apart.
• Patient capital required: 18-24 months to prove traction, longer than typical venture builder expectations.
• Organizational change is the most challenging part: Getting business units to engage with ventures requires continuous executive sponsorship.