From governance models to internal alignment, they share the blueprint for how corporate venture arms can thrive beyond the 3.7-year industry average lifespan. The discussion ranges from financial vs. strategic returns, to the “King of the Hill” philosophy, to why equal-win partnerships are essential if corporates want to play the long game.
This is essential listening for corporate leaders, founders, and investors who want to understand how to build CVCs that stand the test of time.
🎧 Here’s what’s covered
00:00 Balancing short-term pressures with long-term horizons in corporate venture.
01:00 Measuring strategic impact: why financial returns aren’t enough, and how to keep communication continuous.
02:00 Governance models: how Fidelity and TDK designed their investment committees.
03:12 Strategy vs. finance: why it’s a false choice and the case for picking future market leaders.
05:00 The “King of the Hill” concept: investing in potential category leaders even before markets exist.
06:00 Why the financial bar must come first—and how corporates can offer startups more than just capital.
07:00 Avoiding the “strategic-only” trap: why CVCs fail and how to last beyond the 3.7-year average.
08:00 Working with champions inside the mothership and building early success stories.
09:00 Equal-win partnerships: why both corporates and startups must feel the value for relationships to endure.
✍️ Show Notes
Balancing Horizons
Short-term return pressures can kill long-term innovation.
Both leaders stressed that continuous interaction and communication between startups and the corporate mothership is essential.
Governance Models
TDK Ventures designed its IC with the CFO, CTO, and CSO—directly aligning with long-term strategy.
Fidelity International Strategic Ventures built a two-part IC: internal leaders plus external LP and VC perspectives, ensuring diversity of thought and constructive friction.
Financial vs. Strategic Returns
“It’s a false choice.” Financial and strategic value must be pursued together.
Pick future market leaders (“Kings of the Hill”)—if they succeed, both financial and strategic returns follow.
King of the Hill Philosophy
Invest in companies that could be category leaders in markets that don’t yet exist.
Example: vertical takeoff and landing in 2020, when the market was zero, but with trillion-dollar future potential.
Why the Financial Bar Comes First
Corporates must back the best founders and companies.
Strategic value from mediocre players never beats the benefits of partnering with market leaders.
Surviving Beyond 3.7 Years
Average CVC lifespan is under four years.
Fidelity and TDK have lasted far longer by:
Anchoring in clear financial goals.
Building trust with corporate champions.
Demonstrating early success stories.
Equal-Win Partnerships
Avoid the trap of small-win/big-win deals where the startup eventually leaves.
Design partnerships as true equal wins, so both sides capture lasting value.
💡 One-liner takeaway: CVCs survive when they anchor in financial discipline, align with long-term corporate strategy, and design equal-win partnerships that let startups and corporates both thrive.
