Unilever's Startup Support Expands to Industry Peers

Ad Age reports that Unilever is expanding its Unilever Foundry program, newly established last year to support startups in the marketing technology field. The new initiative involves partnerships with venture companies in the same industry that could potentially become competitors.

Unilever Foundry was created a year and a half ago to support startups in marketing technology fields such as content creation, data analytics, mobile marketing, and social media. By partnering with cutting-edge ventures in this rapidly changing sector, the company aims to enhance the effectiveness of its own marketing investments. At the 2015 Cannes Lions festival, the company drew attention by launching the "Unilever Foundry 50" competition, a collaboration with the Innovation category to select the world's top 50 ventures.

Its operations are built on three pillars: hosting events and competitions to discover outstanding ventures, forming partnerships between startups and Unilever brands, and sharing Unilever's marketing expertise.

The Unilever Foundry website showcases ongoing projects within Unilever, allowing startups to submit their ideas. With an estimated 2 billion users of Unilever products worldwide, adoption could lead to a business of significant scale.

Selected startups receive $50,000 in funding and the opportunity to conduct pilot projects with Unilever's renowned brands. Over the following three months, Unilever's marketing experts mentor the startups on scaling their businesses. Financial support is provided in the final stage.

Within a year and a half of its founding, 4,000 companies have been reviewed, with 80 conducting pilot projects with Unilever brands. Additionally, 40 companies have already expanded their operations. The company's related expenditures have reached $15 million to date.

Unilever Foundry, headquartered in London, UK, will also begin supporting peer ventures in the personal care sector following the opening of its US branch. It is already conducting pilot projects for business model innovation with a small number of startups. Jeremy Bassett, head of Unilever Foundry, describes industry startups as "both friends and foes." He envisions leveraging their growth to pursue "a third path for business expansion between organic growth and acquisitions." As in other industries, the rise of agile startups undoubtedly threatens Unilever's market share. However, Unilever's brands show strong interest in supporting startups. At an event in November marking the launch of its US subsidiary, executives from over 100 brands packed the venue seeking connections with startups. Keith Kluiwers, President of Unilever North America, expressed enthusiasm for supporting peer ventures: "As a large corporation, we must embrace new things. Staying connected to a constantly changing world is meaningful."

Source: Ad Age

Unilever Extends Foundry Program to Competitive Startups