#58: Blending Structures for Innovation: A Conversation with Ninepointfive Venture Capital
In Todays newsletter I'm featuring an interview with partners Pieter Van de Velde and Bart Houben of the venture capital firm Ninepointfive.
About ninepointfive
Ninepointfive is a distinctive venture capital firm established with a sharp focus on corporate relationships managing €35 million and specializing in fostering and accelerating start-ups in partnership with leading corporations. They operate with a unique model that blends the worlds of venture capital and corporate venturing. Here founders get an active investor operating in a classical Venture Capital setup able to get the best out of the corporation(s) involved.
Blending Structures for Innovation: A Conversation with Ninepointfive
Background and Foundation
Pieter's Journey is impressive. From founder of venture builder Bundl (See newsletter #34) to founder of Ninepointfive, he has been pioneering the European corporate venturing landscape. Pieter Van de Velde shared his journey tracing back to his earlier entrepreneurial experiences which significantly shaped his business philosophy. Explaining how the work with large corporations illuminated the potential for corporate-backed ventures to benefit from startup-like agility.
"The challenge was always how to make these large entities move faster and more innovatively by collaborating with startups. This experience of setting up such corporate backed ventures was crucial in shaping the foundation of Ninepointfive,"
Learnings from early instances where projects stumbled over corporate red tape, helped to refine the approach taken at Ninepointfive to ensure more fluid, flexible venture operations that still benefit from corporate structure and resources.
Bart Houben, joined Ninepointfive with his robust background in corporate finance and roles ranging from CFO to investment manager at firms like Gimv. Bart’s expertise is very complementary to Pieters and gives for me a solid foundation for Ninepointfive.
Introduction to Ninepointfive's Model - The Genesis and Evolution of Ninepointfive
Bart Houben provided an insightful overview of the initial conception of Ninepointfive's distinctive model, designed to bridge a significant gap in the market. He described the venture capital firm as one uniquely positioned to operate with the muscle of a corporation yet maintaining the nimbleness of a startup.
"Our model was built from the ground up to address this need, integrating strong corporate relations with the independent spirit of entrepreneurs,"
Bart explained, emphasizing the foundational principles of Ninepointfive.
He detailed the evolution of this model, particularly highlighting how it has adapted to the dynamic nature of the venture capital market. During the due diligence phase, Ninepointfive meticulously maps out possible strategies for pivots based on market feedback, integrating technology insights, and leveraging deep corporate knowledge. This proactive and strategic approach ensures that startups maintain operational agility, critical to their sustained growth and adaptation.
Bart also touched on the broader spectrum of investment scenarios that Ninepointfive has embraced over time, from pure corporate spinouts to partnerships with corporate venture capital (CVC) arms, both strategically and financially motivated.
"We have invested across the spectrum of potential setups of how a corporation invests. It’s about understanding their way of thinking, aligning it with our investment goals, and crafting a pathway that maximizes value for the venture,"
This reflects a deep understanding of the corporate landscape and an ability to navigate its complexities effectively.
Furthermore, Bart highlighted the dual role Ninepointfive plays, not only in fostering startups but also in facilitating sophisticated corporate investment strategies. This dual approach allows Ninepointfive to effectively bridge the gap between corporate strategic interests and the innovative potential of startups, thus navigating complex investment landscapes with agility and strategic foresight.
Measurement of Success - Evaluating Venture Performance
We operate as any other venture capital fund. We have the exit of the start-up's as our primary target
Future Outlook: Adapting to an Evolving Corporate Venture Landscape
The landscape has evolved significantly over the past five years, marked by the proliferation of corporate venture builders and strategic CVCs, and an influx of CVC capital into startups. These changes highlight a dynamic environment that is increasingly embracing digitization and sustainable practices.
Conclusion: Steering Forward with Insight and Agility
As my conversation with Pieter and Bart concludes, it's clear that the Venture Fund Ninepointfive has not just navigated the present landscape of corporate venturing, but is also strategically forecasting and adapting to future trends. Their agile approach to investment, keen focus on entrepreneurial vitality, and the sophisticated balance between corporate scale and startup dynamism underline their unique position in the venture capital domain. They will harvest venture like returns through their model which is super strong.
I hope you enjoyed this week's newsletter. If you have any suggestions or contributions that you would like to share with me, please do not hesitate to reach out. I would be delighted to hear from you.