What is Corporate Venture Capital?

Technology progress in the last century has dramatically increased the rhythm of change across industries. In parallel, incumbent companies have learnt that their in-house R&D capabilities are not enough to keep up.

Since 1960, corporations invest in startups through CVC funds to access technologies, tap new markets and channels, and foster a startup mentality across the organization. Additionally, CVC portfolio development serves as an ideal tool to scout for candidates to relate with through other corporate venturing tools, such as M&A and Venture Building.

CVC experienced explosive growth in the last ten years and now accounts for 26% of all VC investments. Today, more than 1,000 corporations from virtually every sector and industry rely on their CVC arms to boost innovation and growth. In 2017 alone, these CVCs invested $44B in startups (up from $11B in 2012); the typical CVC fund deployed between $10-90M.

We invest in companies that radically benefit our corporate clients with new brands, channels, or technologies.

We help the region’s leading corporations with the set-up and ongoing operation of their CVC funds.

Corporate Venturing Strategy

Prior defining the CV strategy, our work involves (i) analyzing the industry’s structural changes (regarding consumers, startups, and incumbents), (ii) screening the industry’s global startup ecosystem, (iii) making an in-depth understanding of the company’s goals, strategy, and needs with regards to innovation, and (iv) evaluating the viability of each corporate venturing tool. Then, considering all of the above and the company’s available resources and scope, we design the company’s CV strategy together with the implementation plan, and do the evaluation and selection of service providers.

Timeframe: 3 months

CVC Operation

We formulate the investment thesis (i.e. definition of the type of companies the CVC intends to invest in), considering all previous analyses. Next, we approach the deal-flow strategy by identifying and connecting the agents that best match the investment thesis (e.g. venture capital firms, accelerators, startup studios, conferences, competitors). In parallel, we design a governance mechanism geared towards empowerment and expediency. Subsequently, we build and manage relationships with promising targets, and evaluate opportunities bearing both strategic (partnership potential) and financial considerations. Finally, we execute investments, operate the portfolio, and guide the company through implementations of partnerships.

Timeframe: 4 months (until launched) & ongoing deployment of funds