#62: Corporate Venturing Summer Edition
Dear Readers, Colleagues and Friends
As we wrap up my activities before the summer break, I wanted to take a moment to reflect on the progress we have made and share some significant updates. This will be the last newsletter before the summer, and I have some important changes to announce that will come into effect after the break.
Firstly, I would like to extend my heartfelt thanks to everyone who participated in the newsletter this year. Your involvement and contributions have been invaluable, and I am immensely grateful for the vibrant community we have built together.
Navigating Corporate Venture Capital: Insights and Reflections
Last week I came across an enlightening report from Mountside Ventures and Love Ventures titled "Navigating Corporate Venture Capital." (report link in comments) This report underscores the growing trend and evolution of corporate investments in startups, with notable insights that I believe are crucial for our community and learnings.
Key Insights from the Report:
Increased Corporate Investments: The ratio of corporate investments in startups has significantly risen from 1 in 10 in 2010 to 1 in 4 in 2024. This shift highlights the increasing interest and strategic alignment corporates are seeking with innovative startups.
Challenges and Misalignments: While CVCs provide immense value, the report highlights challenges such as interest misalignment, longer investment timeframes, and cultural incompatibilities. Founders should be aware of these factors when considering corporate investments. But as a statement from myself. Dear founder be aware of what the VCs offer you as well.
Investment Appetite and Strategy: The report also delves into what drives CVC investment decisions, with alignment to the corporate's investment thesis being paramount, even outweighing potential financial returns.
There are some great quotes from CVC Stars such as Isabella Thomas and Bruno Moraes so please check it out.
One thing that could have been covered mores is that if you are an emerging CVC one benefit of FoF investments is the learning of processes in operating a VC
During a recent talk I held at Copenhagen Business School (Link), a participant questioned the longevity and sustainability of Corporate Venturing in Europe, citing an average lifespan of 3.7 years for CVCs. My response was a reflection on the evolution of Venture Capital in Europe. Twenty years ago, skeptics doubted the viability of VC in Europe compared to the US. Today, Europe is not only catching up but in some areas, leading the charge.
Upcoming Changes Post-Summer
As we move forward, there will be some exciting changes to our newsletter format to better serve the growing community. I am eager to hear your suggestions on topics you would like to see covered and interesting individuals you believe should be interviewed. Your input will be invaluable in shaping the future direction of our content.
How You Can Contribute:
Topic Suggestions: Let us know what themes or issues are most pressing for you in the world of corporate venturing.
Interview Nominations: Recommend industry leaders, innovators, or thought leaders who would provide valuable insights.
Feedback and Ideas: Share any other suggestions or changes you think could enhance our content and make it more engaging for you.
Final Thoughts Before the Summer Break
In closing, I encourage you to read the "Navigating Corporate Venture Capital" report, which provides a comprehensive overview of the current landscape and future directions of CVC. The insights from industry leaders like