[PREMONEY 2014] VCs Are From Mars, Corporates Are From Venus: Can't We All Just Get Along? | Summary and Q&A
TL;DR
Corporate Venture Capital panelists discuss myths, investment strategies, and long-term commitments.
Key Insights
- ❓ Corporate venture capitalists emphasize the importance of clear communication of expectations with startups.
- 🔠 Long-term commitments and patient capital are crucial aspects of corporate venture capital investing.
- 🔠 Different corporate venture capital programs have varied fund structures and compensation methods.
- 🍉 The trend towards mainstream corporate venture investing requires a strategic and long-term commitment from corporations.
- ⚖️ Balancing corporate objectives with supporting investments is crucial for the success of both startups and corporate venture capitalists.
- 🖐️ Maintaining reputations and financial incentives play critical roles in the decision-making process of corporate venture capitalists.
- 🍉 Corporate venture capitalists aim to foster strategic partnerships with startups, focusing on mutual success and long-term growth.
Transcript
uh so it's 5:00 on a Friday and the room is I think about as full as it was when I was here at 9:00 in the morning so this is I think a sign of a great great group of people and a great conference so uh let's get right into it in the uh in the interest of time should we start with brief introductions and why don't we go right down the list here Bre... Read More
Questions & Answers
Q: How do corporate venture capitalists manage expectations with startups regarding strategic investments?
Corporate venture capitalists communicate expectations explicitly during agreements, ensuring alignment with startups' goals, avoiding surprises, and fostering meaningful partnerships.
Q: How do corporate venture capitalists navigate conflicts between providing reserves for future rounds and corporate objectives?
Corporate venture capitalists prioritize supporting investments and maintaining reputations, ensuring fairness, patient capital, and deeper pockets for follow-on investments while adhering to long-term commitments.
Q: Is venture investing becoming more mainstream as a corporate strategy in the tech industry?
Yes, the proliferation of corporate venture funds indicates a trend towards mainstream venture investing, requiring long-term commitment, deep pockets, and strategic partnerships.
Q: How do corporate venture capitalists structure their funds and compensate their teams?
Corporations structure funds differently, some balance sheet investors like Intel, some have separate funds like Qualcomm, and compensate teams through bonuses without a formal carry structure, incentivizing success of portfolio companies.
Summary & Key Takeaways
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Panelists discuss their respective corporate venture capital programs.
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They address common myths regarding corporate venture capital investing.
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Insights are shared on fund structures, compensation, and long-term commitments to startups.