Global Corporate Venturing’s Post

💡 Venture Building, Venture Clienting, Corporate Venture Capital, what's the difference and what's the right innovation vehicle for my company? 📃 Working in the field for 6+ years, I thought it was time to make a long list of the most widely used innovation formats and compare them. If you are interested in learning more, check the Pioneers.io website and download the detailed list with * Description and goals of each format * Time-span and expected outcomes * Advantages and disadvantages * Fit with your company's market environment ➡ Link: https://lnkd.in/dJCNQnhU From our experience at Pioneers.io not every format is suitable to any company. The right one, however, should be selected based on your goals, current market developments, and resources available. Hit me up and let's discuss which one could be the right fit for you to drive innovation. 💬 Missed any format? Curious to hear your ideas. Someone could benefit from the list. Tag them in the comments =) #innovationformats #innovationvehicles #innovationactivities #corporateinnovation #innovation

Steve Rosenbush’s article in CIO Journal yesterday. Corporate Venture Capital Provides Path for Long-Term Tech Strategy. While traditional VCs are laser-focused on financial returns, CVCs embrace a more holistic perspective. They align investments with the broader strategic corporate goals. CVC investments are often directly from their balance sheets rather than run as a fund, allowing them the flexibility to capitalize on opportunities irrespective of market cycles, that can be invaluable, especially during market downturns with lower valuations. At the heart of it, CVC can help provide direction and early signals, offering the long-term tech strategies for CIOs and corporate leaders. Two good case studies from the article: 1. Johnson & Johnson saw an opportunity in the HIV treatment market. So, they strategically invested in Tibotec-Virco in the early stages, paving the way for their presence in the HIV market. 2. TDK Ventures of TDK, Japanese electronics giant. Their decade-long investment journey into startups, especially within digital and energy transformation domains. Their investment in AM Batteries, known for its transformative “dry” process, is an excellent example of their strategic long-term goals from the investments. In today’s changing tech landscape, CVC emerges not just as an investment arm but as a tool or mechanism for tech leaders to foster innovation, stay ahead of the curve, and ensure a sustainable future. #corporateventurecapital #innovation #strategicinvestments https://lnkd.in/gNE-GVDQ

Corporate Venture Capital (CVC) offers transformative opportunities, access to innovation, and financial gains. This forward-looking approach supports longer investment horizons, which are particularly beneficial for mid-sized companies, and fosters alignment with other innovation vehicles to drive financial and strategic investments.   Start-ups are increasingly valuing the extended investment horizon and complementary assets offered by CVC investors. This has created favorable investment opportunities, especially those in their early stages of development. Furthermore, when there is alignment between CVC and other innovation vehicles, this can catalyze both financial and strategic investments, promoting a more robust innovation ecosystem. Leading experts and successful CVC fund managers recently discussed how to successfully play the CVC game in the Porsche Consulting Virtual Roundtable “Corporate Venture Capital – Does it pay off?” and came to the following conclusions:   ✔ Define clearly goals and investment focus areas aligned with the corporate strategy ✔ Create a mixed team of internal colleagues & external talents distributed among major tech hubs ✔ Effective approval processes enable fast investment decisions ✔ Confirm long-term investment horizon at board level ✔ Diversify investments in terms of industries, geographical scope, technology or maturity ✔ Ensure knowledge transfer between startup & corporate investor under the responsibility of business owners   Learn more about how Corporate Venture Capital activities are succeeding in the recording of the Porsche Consulting Virtual Roundtable: “Corporate Venture Capital – Does it pay off?”: https://lnkd.in/em--w9yB   #CVC #CorporateVentureCapital #StartUp #Investment

According to Euroconsult, start-up space ventures attracted approximately $8 billion in total financing in 2022. This investment was in the form of 154 deals, involving more than 400 investors, in 123 companies based in 20+ countries. For eight of these companies, 2022 saw their first publicly announced funding. The average deal size in 2022 was $53 million, and seven deals were over $100M. More than half of investors in 2022 were first-time investors in the start-up space, including 157 venture capital firms, 26 angel investors, and 26 corporations.

What's the ideal time to invest? How to approach it in the short and long term? It’s essential to get answers to these key questions around venture capital before taking any action. Venture capitals fuel innovation, enable the emergence of new business models and tech, create jobs, help stimulate economic growth and more. Insightful perspectives in this Forbes article on ways to navigate this space: https://lnkd.in/dve9anhd #VentureCapital

I have successfully completed the course Ultimate Venture Capital: How to model investment rounds. It is an excellent course for learning how to build cap tables from scratch including their construction, the implications for startups and investors and the potential payout after multiple investment rounds.

Medtech venture capital investment showed a strong recovery in the first quarter, indicating a positive trend that is expected to continue. Despite potential challenges such as fluctuating interest rates, increased regulatory scrutiny, and the upcoming presidential election, analysts from Pitchbook remain cautiously optimistic about the sector's growth. The latest report from Pitchbook reveals that medtech venture capital reached its highest level since late 2022, even though the number of deals remained low. This resilience in funding showcases a promising outlook for the industry. #MedtechInvesting #VentureCapital

Sebastian Mallaby makes a good point about the future of Venture Capital. "Between 1980 and 2000, VC-backed companies accounted for an already substantial 35% of US IPOs. In the ensuing two decades, the share jumped to 49%. Looking to the future, venture capital will advance even more because of a fundamental shift in the economy. In the past, most corporate investment was tangible: capital was used to purchase physical goods, machines, buildings, tools, and so forth. Now much corporate investments is intangible: capital goes into R&D, design, market research, business processes and software.... ... venture capitalist are better equipped to allocate capital in this bewildering world" The Power Law, great book

LG adds $300M to its CVC drypower South Korean conglomerate LG Group is set to increase its commitment to US-based corporate venturing arm LG Technology Ventures to over KRW 1 trillion ($768m), it has confirmed to Global Corporate Venturing. Formed in 2018, LG Technology Ventures has been investing out of a $480m first fund backed by six group affiliates. Three of them, LG Electronics, LG Energy Solution and LG Uplus, have already committed $192m to LG Technology Ventures’ second fund, which is expected to reach a final close later this year. The news emerged as the corporate announced a separate $100m fund (Nova Prime Fund) partnership with impact-focused asset management firm Clearbrook. The fund will back startups that are part of the Mission for the Future Program run by LG Electronics’ North America Center for Innovation (LG NOVA). It will focus on companies developing digital health, sustainable energy, immersive AI and future technologies. LG Electronics will be a limited partner in Nova Prime Fund while ClearImpact Ventures, the VC arm of Clearbrook, is the general partner. #CVC Global Corporate Venturing Mind the Bridge #openinnovation