KPMG has launched a Digital Innovation Network to connect early-stage startup companies to the consultancy’s clients.
The Digital Innovation Network has been launched in partnership with the Chelsea Apps Factory (CAF), a technology startup specialising in producing enterprise mobile apps (EMAs).
By partnering with CAF, KPMG will provide its clients with access to mobile innovation, while CAF will gain business advice and consultancy from KPMG while having access to its clients. KPMG will take an initial equity stake in CAF of 10%, which may increase as the business partnership grows.
CAF is the first startup to partner with KPMG’s Digital Innovation Network.
Mike Anderson, CEO Chelsea Apps factory said: “Being a part of the Digital Innovation Network means that we can combine our creative talent with KPMG’s industry and technology integration expertise to offer our clients an unparalleled capability to mobilise business through a process of discovery and delivery.”
KPMG said an increasing amount of IT budgets are now being devoted to building EMAs and experts estimate that the UK EMA market is currently worth £150m and at the moment there is no single player offering a credible end-to-end offering for the emerging needs of the FTSE-500 companies.
KPMG acknowledges that it is sometimes difficult for large companies to partner with smaller creative agencies. The consultancy aims to support early stage technology companies in order to become part of the company’s success as well as preserving the autonomy of the startup.
Simon Collins, UK chairman of KPMG, said: “Today’s partnership brings together two organisations, at polar opposites of the business spectrum. Our Tech City presence shows there is huge appetite among some of our largest clients to build networks with smaller technology companies, at the forefront of technological innovation. Vice versa, small technology companies, particularly startups, are looking for the support – not just financial – of large corporations.”
KPMG opened a permanent home in London’s Tech City last year, as well as launching KPMG Capital, which focuses on data and analytics.
Collins said KPMG’s “corporate match-making” in Tech City is already proving a success, and the digital innovation network is the next step to encourage partnerships.
KPMG is currently looking at five other startups which might appear as part of the network over the next five months. The consultancy looks for companies with intellectual property and skills which complement its brand and core offerings. Startups also must have a strong management team with a clear business growth model to be considered for the network.