A Corporate Venture Capital Partner Roundtable
We took a look at how much Corporate Venture Capital (CVC) has grown and talked to partners from five continents about their structure, how they measure success, and why they chose CVC.
Some Background on CVC
It was in 1914 when Pierre S DuPont invested in an automotive company called General Motors. CVC has been around for over 100 years and is growing rapidly. There have been four major waves. The origin, the first, second, third, and fourth wave. What’s next? CVC is entering an age of maturity in which more information and more examples lead to better investments and more success stories. CVC has many benefits, but the two most popular reasons for investing include strategic benefits and financial return.
During a roundtable discussion between Plug and Play’s Jennifer Elftmann and 10 of our corporate partners including Worley, WIND Ventures, True Digital Group, Tru Corporation, PTT Express, the panelists discussed the general setup of a CVC, corporate strategy, investment focus, and stakeholder management.
Some Trends to Look for in 2021
- Expecting record year for deal volume, capital invested, and number of CVC investors.
- Corporate Venture funding is likely to grow despite the disruption caused by the pandemic, and indeed in response to that upheaval.
- New CVC's will increase overall geographic and industry diversity.
- A large number of corporations have integrated startup investing into their growth strategy with more expected to follow suit.
- CVC's emphasis on strategic investment is increasingly turning to financial motives.
- Create a budget and stick to it.
- Have a clear understanding of the goals and KPI’s for your CVC.
- Executive-level buy-ins are key - ensure synergies to the broader organisation.
- Send clear and consistent messaging to stakeholders.
- Make sure the innovation team sends consistent messages and everyone is educated on goals and hopeful outcomes.
Plug and Play Ventures
As one of the most active VCs in Silicon Valley, our goal is to fund the teams that are building the defensible businesses of the future. By leveraging our capital, our network of VCs, and our corporate partners, we give our portfolio companies an unfair advantage.