CVC As A Service

An essential tool for the corporate innovator

As the impact of emerging technologies on the economy becomes over more important, enterprises are increasingly seeking access to innovation from startups. Early-stage companies have proven capable of disrupting legacy companies through technology and novel business models. Corporate innovation strategies, whether offensive or defensive, increasingly include the set up of a Venture Capital fund exclusively funded by a single corporation.

Corporate Venture Capital, CVC, gives companies access to and co-ownership of emerging technologies, irrespective of whether those ventures are incubated by or for the corporate, or by entrepreneurs in the wild.

CVC-as-a-service

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Institutional Control
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Originally developed to invest in startups related to the company’s core mission, in the last half decade CVC arms have formalized and expanded their mandate to keep up with professional VC firms. This formalization presents a paradox for most corporates looking into CVC for the first time: the strategic imperative for CVC has never been more urgent, and yet the barrier to build an investment capability in-house has never been higher.

By choosing for discretionary CVC fund management approach as corporate you:

  • exercise your right to play, leverage your own assets and remain in charge of your investment thesis and innovation agenda;
  • do not have to commit to large amounts of dry powder all at once; familiarising yourself with the model and its returns;
  • do not have build or buy and expensive VC team, but can tap into professionals who make work across different fund

2000 corporations currently engage in VC, more than double the number a decade ago.

(Source: GCV Analytics)

Global CVC level activity reaches nearly USD60b in 2019

(Source: CB insights)

CVC contributes 50% of the total deal value for US-based companies

(Source: Pitchbook)

The single most important factor that drives the success of a venture fund, corporate-backed or other, who have the choice on whose money to accept, will look for a VC partner who can empathize with their journey, who can truly add value, and who they believe they can trust. Both these forces together imply that CVCs need to engage executives who are rooted in the startup and venture world, not just have a corporate strategy or M&A background.

The Wright Partnership fits in right there. As entrepreneurs, we have built ventures, raised money, and existed and can speak with the founders and entrepreneurs understanding the fears, challenges, and hopes. As investors, we have made and lost money, have looked to mitigate risk, and create financial value across the life cycle of companies. As consultants, we have advised all levels of management in large-scale organizations, understanding their fears, challenges, and hopes, and appreciate budget constraints, stakeholder management, and corporate culture.

As operators, we come with a deep understanding of the venture ecosystem, and hence an ability to bring you deals, identify co-investors and mobilize subject matter experts. We enjoy the sometimes Sisyphean task of day to day execution far away from the praise of the media. We can represent your CVC in public space, or operate under bonnet.

The Wright Partners Touch

Venture and Operating Partners

Our Service Include

  1. Defining the Mandate, Strategy and Investment Thesis, in alignment of the corporate strategy and the venture ecosystem
  2. Drafting the execution model, compensation scheme and governance
  3. Scouting and curating the right ventures
  4. Engaging with the ventures and preparing them to collaborate with the corporate partner (PoC success definition and execution)
  5. Conducting Due Diligence, and closing the deal
  6. Managing post-deal support and portfolio
  7. Operations guidance ensuring the continued alignment of the investment with the corporate strategic goals while supporting the venture growth
  8. Managing Venture incubation strategy, i.e, custom-build the next generation of portfolio companies

1/4 venture deals is lead or solely
invested in by CVCs

(Source: Pitchbook)

In 2019, large companies worldwide took part in a record 3237 CVC deals. This is more than four times the number of corporate venture capital-backed deals in 2011.

(Source: Global Corporate Venturing (GCV) Analytics

Asia-Pacific was the leading global region for CVC-backed deals between 2011 and 2019, with almost 40% of deal tracked in the period.

(Source: fDi Intelligence)