Corporate Venturing: A Survival Guide

Five operational dimensions—functional categories/elements and acceleration levers common to all programs Dimension Contents Levers for Acceleration Program objectives Investment strategy and models Funding Lead times/performance expectations Vision-driven program and execution roadmap Expansion of financial tools and funding access (ability to “ma

the business priorities and strategy that sets the course for the future of the parent.

Investment is a red [ocean] market, with too many investors and too much money. Although everybody

is talking about post-deal management or value-added services to investee companies, but the key thing it can provide is still the same money.

I believe there is a triangle of growth and innovation for large corporations with three elements: organic efforts, equity investing, and M&A.

An up-leveled portfolio and performance management function (tracking and reporting)

Strategic or financial performance? It’s always been both. And it’s always been “muddy.” Corporations have typically expected from their CV programs a blend of strategic and financial performance, adjusted by parent-specific priorities and lead times. Parent companies have been driven to tap new types of external innovation that strategically lever

value delivery) and external (committed/credible investor, value-adding partner with ecosystem vision) positioning and perceptions as there is often a “maturation gap” that the CV team must finesse in the early stages of CV program development. Key message: no “dabbling.”

From this perspective, CVC naturally has the capability of differentiation. No matter [whether] it’s minority investment or acquisition, CVC should be thinking from the company’s perspective, being a trusted friend of the company, and provide its resources and expertise to back the company to grow.