Raising money from Corporate Venture Capital (CVCs)

The conversation with Jeppe Høier covers various topics related to corporate venture capital (CVC). Jeppe discusses the structure of CVCs, the different types of investments they make, the challenges and benefits of working with CVCs, and the differences between European and US CVCs. The discussion also touches on the lengthy process of engaging with CVCs and provides tips for startups to navigate this process. Overall, the conversation aims to provide insights and understanding of CVCs for startups and investors. In this conversation, Jeppe Høier and Samia discuss the role of corporate venture capital (CVC) in the climate tech industry. They explore how CVCs differ from traditional venture capital firms and the advantages they offer to startups. They also discuss the challenges startups face when seeking investment from CVCs and provide advice on how to navigate the landscape. Additionally, they touch on the changing landscape of CVCs and the importance of building relationships with corporates.

Takeaways

Corporate venture capital (CVC) is an important player in the startup ecosystem, with corporates having a significant role to play in the energy transition and climate tech.

The structure of CVCs can vary, with different decision-making processes and strategic goals. Some CVCs invest for return purposes, while others invest with the goal of potential acquisition.

Engaging with CVCs can be a lengthy process due to the bureaucratic nature of large corporations. Startups need to understand the decision structure and process of the CVC they are working with.

Information flow and communication between startups and CVCs can be challenging, but it is crucial for successful collaboration. Startups should consider limiting access to information rights and keeping ownership below 5% to protect their interests.

European CVCs are still developing and may not have the same level of maturity and experience as their US counterparts. However, the European startup ecosystem is growing, and more success stories are emerging. Startups should seek value creation from CVCs beyond just financial investment, such as access to assets, brands, customers, data, and expertise.

When looking for investment from a CVC, startups should understand the specific value they are seeking and target CVCs that align with their industry and goals.

CVCs can provide startups with revenue opportunities, cost savings, and access to their network and resources.

Startups should conduct due diligence on CVCs and seek references from other portfolio companies to understand the value they can bring.

The CVC landscape is constantly evolving, and there is a need for more deep tech investors in the climate tech space.

Corporates can also play a role as limited partners (LPs) in venture funds, but it may take longer to raise capital from them.

Building relationships and understanding the decision-making structure within corporates is essential for successful collaboration with CVCs.

Links

Corporate venturing newsletter

Research: The Lifecycle of Corporate Venture Capital

Contact Us

Guest: https://www.linkedin.com/in/jeppehoier/

Email us: info@climatetech360.com

Host: https://www.linkedin.com/in/samiaqader/