The Migros Cooperative Association (MGB) intends to transfer Sparrow Ventures’ start-up investments to the corporate finance sector. Innovations should continue to be developed and implemented in a targeted manner within the various areas of the Migros Group.
Sparrow Ventures was founded in 2018 to develop and promote innovations for the Migros Group with a defined investment budget and clear goals. Sparrow Ventures focuses on two areas of activity: Firstly, so-called “venture building”, which builds up its own companies. The second pillar is “Growth Equity”, where Sparrow Ventures specifically invests in external start-up companies, participates in them and also supports the young companies in an advisory capacity. A number of promising new start-ups have emerged in recent years. But overall, the goals set unfortunately could not be achieved to the desired extent. The earnings expected in the future also do not justify further investments, particularly in venture building. Rather, Migros wants to continue to develop and implement innovations in its core business in a targeted manner within the regular corporate areas.
After a comprehensive analysis of the future prospects of success, the administration of the Migros-Genossenschafts-Bund (MGB) decided on Thursday (October 26, 2023) not to further finance the venture building activities of Sparrow Ventures in the future.
Unfortunately, based on the current planning status, job cuts are unlikely to be avoided. A consultation process will be opened with the affected employees.
Migros intends to transfer the start-up investments of Sparrow Ventures itself within the MGB to the corporate finance area. Migros looks for individually optimal future solutions for its own ventures.
Source: Migros, Oct. 26 2023