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How do big companies evolve? How do they learn to do something new? These are questions that have taken up untold pages of books, magazines, and journal articles. As a venture capitalist (VC) in water, I’ve seen firsthand that most large companies in the sector struggle to effectively engage with external innovation, particularly with entrepreneurs developing technologies that could enhance their value propositions or product suites. Yet, both sides stand to gain: Large companies expand their product suites without having to build from scratch, and startups gain access to something invaluable: distribution at scale.  

That’s what makes Xylem’s success with Xylem Innovation Labs such an impressive case study. Formed in 2021, the program was a deliberate effort to bridge this gap, engaging with the growing ecosystem of water entrepreneurs and investing in the best talent developing industry solutions. If you think entrepreneurship is hard, try corporate innovation. 

Building a new function within a company requires navigating the constraints of an existing organizational structure. Simply tacking on a skunkworks team with a Gone in 60 Seconds-type team of innovators often leads to fragmentation, internal resistance, and ultimately, failure. Xylem Innovation Labs avoided these pitfalls by structuring its program with precision and purpose, making it a model for systematic change. 

At its core is the Partnerships Accelerator, designed to........

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