Corporate Venturing: A Survival Guide

CSAA Insurance Group’s young S&I team started by developing focused Point of View (POV) white papers to explore key trends, reimagine parent product/service opportunities, and map innovation/venture landscapes to guide make/buy/partner/invest decisions.

Also critical is permission to look externally for key CV specialist competencies not available internally (e.g., legal, tax and accounting, compensation, deal data, search, innovation strategy, and landscaping). For example, CV teams can get up and running quickly and effectively by adopting a legal team construct that combines experienced venture

Plan for development and integration of CV business development (CVBD) function With early investments, the CV team learns from experience about how best to deliver on the end-to-end investing vision and plan for expansion. Where are the best parent champions and middle management touchpoints (for strategy input and operational engagement)? Who is

One particularly sensitive area is the degree of control or notice in the case of a potential merger exit. More than 90 percent of start-ups exit by a merger. The venture capital operations of some corporations are concerned about the potential sale of the start-up to a competing company. Yet start-up and traditional financial venture capital inves

should recognize that they may need different terms because of their internal needs and regulatory requirements.

However, these forms are designed for traditional financial investors, and corporate venture capitalists

Financing Terms: Most start-ups understand that growth will require a series of financings, and investors will expect financing terms which are “industry standard.” During my thirty years of practice, the terms of venture capital financing transactions have become more standard, with the rise of standard forms such as Series Seed, SAFE, and Nationa

Develop agile CV-specific deal management/investing process Seasoned CV teams come with an understanding of how to balance competitive VC deal timeframes with just enough diligence, rigor, and standardized deal structuring. (See Mark Radcliffe/DLA Piper Q&A on CVC financing and legal considerations.) Ideally the team has the autonomy to develop

Less than 20% of voting stock in C-Corp, less than 5% of LLCs or partnerships Investment Geography Globally but generally North America Investment Amounts $1–10M for typical investments plus follow-ons Larger amounts if PE/structured buyouts Syndication Deal dependent on other VCs or investment groups as lead or co-lead Holding Period 5–7 years Por