We are all prisoners of our own explanations, and Corporate Venturing units are no exception. Crispin Leick's insightful piece unpacks the contradictions in CVC and offers a path towards better explanations. Check it out! #corporateventuring #CVC #uncertainty
𝗙𝗼𝘂𝗿 𝗺𝗮𝗷𝗼𝗿 𝗰𝗼𝗻𝘁𝗿𝗮𝗱𝗶𝗰𝘁𝗶𝗼𝗻𝘀 𝘁𝗼 𝗸𝗲𝗲𝗽 𝗶𝗻 𝗺𝗶𝗻𝗱 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗮 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝘁 𝗖𝗩𝗖 A CVC unit deals with very different cultures regarding its startup portfolio and its corporate backer. The CVC is a bridge between these different worlds, but a bridge with a very sharp financially oriented business model. After more than 16 years in CVC, the following contradictions need to be managed well to establish a performant CVC unit. 𝗧𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝗰𝗼𝗻𝘁𝗿𝗮𝗱𝗶𝗰𝘁𝗶𝗼𝗻 𝗶𝘀 𝗮𝗯𝗼𝘂𝘁 𝗶𝗻𝘁𝗿𝗶𝗻𝘀𝗶𝗰 𝘁𝗲𝗮𝗺 𝗺𝗼𝘁𝗶𝘃𝗮𝘁𝗶𝗼𝗻 CVC teams need to be excited about venture capital as this is the core business model. At the same time, the team needs to embrace what a large corporation can deliver and be proud of the corporate brand and values. It's important to find people who are passionate about both and see that the corporate backing the CVCs investments is in fact, an unfair advantage compared to other investors. 𝗧𝗵𝗲 𝘀𝗲𝗰𝗼𝗻𝗱 𝗰𝗼𝗻𝘁𝗿𝗮𝗱𝗶𝗰𝘁𝗶𝗼𝗻 𝗶𝘀 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝘁𝗲𝗮𝗺 𝗶𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 A CVC team needs to appreciate the financial rewards of the venture capital model, which is based on aligned financial incentives for the entrepreneurial founder teams and their investors. But at the same time, and this links to the first contradiction, the team needs to understand that a corporate environment puts some limitations on the maximum upside. CVCs need people who appreciate the opportunities that come with our partnerships, even if they don't guarantee unlimited riches. 𝗙𝗶𝗻𝗱 𝘁𝗵𝗲 𝘁𝗵𝗶𝗿𝗱 𝗰𝗼𝗻𝘁𝗿𝗮𝗱𝗶𝗰𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗳𝗼𝘂𝗿𝘁𝗵 𝗼𝗻𝗲 𝗜'𝘃𝗲 𝗮𝗱𝗱𝗲𝗱 𝗳𝗿𝗼𝗺 𝗮 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝗳𝗿𝗼𝗺 Joachim Vandaele 𝗵𝗲𝗿𝗲: https://lnkd.in/eQjEQeak
MD @ EnBW New Ventures | Backing ambitious founders with Corporate Venture Capital
4moThank you for sharing!