Corporate Venturing Insider #8: Linda Yates @ Mach49, interview by Nicolas Sauvage

TL;DR

Linda Yates, CEO of Mach49, shares her experiences and insights on corporate venturing, emphasizing the importance of understanding customer pain, taking small bets, and building a portfolio of ventures.

Transcript

good afternoon everyone before we get started i wanted to quickly set the stage so you all have some context firstly my name is sean and i'm a senior associate here at 500. my job is to largely work with a number of corporate investors and innovators on projects related to startup investment and startup partnerships this event is being hosted as pa... Read More

Key Insights

• 😤 Corporate venturing teams should focus on hiring individuals who understand both the startup ecosystem and the corporate environment.
• 🥡 The success of corporate venturing relies on taking small bets, experimenting, and mitigating risks to create a portfolio of ventures.
• 🆘 Phantom shares and equity incentives can help attract and retain top talent in corporate venturing.
• 😚 CVCs can benefit from a close connection with the larger corporation, leveraging its assets, capabilities, and customer base.
• 🍉 Long-term investments and patient capital are becoming more prevalent in corporate venturing.
• 👶 Creating a supportive ecosystem and engaging the new venture board are crucial for the success of corporate incubators.
• 👻 Large companies can reduce talent risk by allowing internal entrepreneurs to work on venture building and providing opportunities for growth.

Questions & Answers

Q: What are the key differences and improvements in corporate venturing now compared to 10 years ago?

One of the main differences is that corporate venturing teams now prioritize hiring individuals who understand both the startup ecosystem and the corporate environment. They are also more focused on portfolio management and taking calculated risks. Additionally, there is a shift towards long-term investments and patient capital.

Q: How can large companies reduce talent risk when engaging in corporate venturing?

Large companies can reduce talent risk by offering phantom shares and other equity incentives to attract and retain top talent. They can also create an engaging and supportive environment for internal entrepreneurs and provide opportunities for venture building within the company.

Q: Should corporate venture capital (CVC) be a separate entity or part of the larger corporation?

CVCs should initially be closely connected to the larger corporation to leverage its assets, capabilities, and brand. However, they can evolve into separate entities over time, but it's important to maintain a strong connection and strategic alignment with the mother company.

Summary & Key Takeaways

• Linda Yates, CEO of Mach49, shares her background and experience in corporate venturing and innovation.

• She explains the concept of "speed boats" in corporate venturing, which involves launching ventures and projects that have the potential to disrupt markets within large companies.

• Linda discusses the importance of talent management, strategic partnerships, and creating a supportive ecosystem for successful corporate venturing.