Curiosity, Competitiveness, and Empathy: Crafting Success in Corporate Venturing

Curiosity, Competitiveness, and Empathy: Crafting Success in Corporate Venturing

May 15, 2024

Interviewed by Nicolas Sauvage on October 11th, 2022

Patrick Hogan, managing director at Honeywell Ventures, told Corporate Venturing Insider how he arrived in the field through curiosity, innovation, and a profound empathy for both startups and established corporations.

A Non-Linear Pathway

Patrick’s odyssey begins with an insatiable curiosity cultivated from an early age. His fervor for comprehending the inner workings of the world manifested through vivid experiences during his teenage years. Patrick’s entrepreneurial spirit became clear at a very early age when he dismantled his father’s stereo to construct a guitar amp. He later built an electrolyzer cell in his bedroom, which left an acoustic wake and a trace of salt-induced corrosion.

From his Ph.D. in applied chemistry, Patrick has been enthralled by laboratories, the interplay of large magnets and electronics, and the exploration of human physiology.

Once ensconced in the professional world, Patrick continued developing his entrepreneurial spirit by working in a biotech startup where the importance of comprehending customers’ needs hit home. It was a realization he would not forget in his CVC role. Later, in a science-based instrumentation company, he forged strategy, orchestrated product lines, and ushered concepts from inception to commercialization. It was here that he mastered the arts of forecasting and product sustainability while steering growth and profitability.

Patrick has worn several hats at Honeywell Ventures as he learned the ins and outs and took a deep dive into the mothership’s mission. This not only gave him a profound conception of Honeywell’s inner workings but also an introduction to all the teams within the corporation. He puts that knowledge to use when connecting business units with startups.

“What helped me get here was understanding the company very well and knowing who to go to in each of our business units and working with many leaders,” Patrick said.

Curiosity, Competitiveness, and Empathy

Patrick said curiosity is the venture capital industry’s driving force. Corporate venture, in particular, serves as a bulwark against dismissing nascent prospects prematurely, fostering an environment of perpetual learning and exploration. This ethos, he emphasizes, becomes a cornerstone for unearthing opportunities that might otherwise remain concealed.

“Our primary currency is helping bring an outside-in view first,” he explained. “Is it going to be competitive, meaning disruptive? If we don’t look at it, someone else is going to use it to compete with us and against us. That drives us all the time.”

Tucked within this view is an appreciation for a competitive mindset, which Patrice says is essential in the corporate realm. He advocates for a balanced dose of collaboration within the venture capital sphere. He believes the quest for enterprises boasts not only a competitive distinction but also a unique value proposition that sets his fund apart. Through collaboration, the venture team emerges as a conduit, challenging insights to inform Honeywell’s strategic decisions and positioning the company at the vanguard of industry innovation.

“We always have to walk in someone else’s shoes to understand their world, their business, their context,” explained Patrick. “And I think that’s whether we’re leaders of people and hiring teams, or whether we’re trying to get into a new technology or area.”

Within corporate ventures, the juxtaposition of scale becomes palpable. Patrick underscored how empathy plays a pivotal role in navigating this. On one hand, vast conglomerates like Honeywell present a treasure trove of resources, expertise, and networks. On the other hand, smaller startups often must serve many masters. It’s in this delicate balance where empathy shines. By understanding startups’ distinct needs, corporate giants can provide tailored support, including cutting-edge tools, specialized teams, and insightful mentorship.

Building the Team

The team structure at Honeywell Ventures initially placed dedicated members at the head of each major profit and loss center. This ensured seamless integration with the parent organization, minimizing “organ rejection.” However, the fund now takes a more holistic approach, with recruiting driven by the recognition that significant breakthroughs often span product silos. Patrick guided the audience through a series of specific qualifications he takes into consideration while interviewing for an additional position in the company:

• Venture Acumen: Understanding the intricacies of the venture capital world and what contributes to its success
• Corporate Savvy: Comprehension of the complexities surrounding large corporations, processes, and scaling strategies
• Technological Proficiency: identifying technological differentiators and grasping their impact on businesses
• Financial Acumen: Evaluating investments’ potential for profitability and financial viability
• Strategic Thinking: Developing strategies that align with corporate goals and foster innovation
• Leadership: demonstrating courage, accountability, and managerial skills, even within a corporate hierarchy

People who exhibit these traits “really get it and understand what it takes for a founder to be successful,” Patrick said. “They’ve probably put out the garbage and added up the numbers and try to go hunt and find customers to do that. So my bias is more for the outside coming in because I think they will do very well and be efficient and we can match them up with people that know the strategy and the technology very quickly.”

A CVC can serve as a talent pipeline for the parent organization, Patrick noted. Employees who thrive within the CVC environment can potentially move back into the core business armed with new skills, fresh perspectives, and innovative approaches. This dynamic creates a mutually beneficial relationship, fueling career growth while enhancing the company’s capabilities.

“I’m trying to hire my boss is basically how I think about (job candidates),” Patrick said. “I think how cool it would be if these new people came in and took amazing roles and took us to another level and a different set of markets or a different set of capitalizations.”

He outlined the red flags that could identify potential mismatches during the recruitment process. Although there can be many deal killers, Patrick said excessive self-centeredness is anathem to CVC. Applicants who are overly focused on their accomplishments rather than teamwork have no place at Honeywell Ventures. The ability to collaborate, build consensus, and influence others is paramount in an ecosystem like CVCs, where success hinges on cohesive teamwork.

As the corporate venture realm continues to evolve, Patrick’s insights remind us that a non-linear journey, fueled by curiosity, empathy, and versatile teams, can redefine success in the landscape of corporate innovation.