TLDR:
Key Points:
- Most VC track records are not exemplary, with the Top 20 VCs earning the majority of VC returns.
- Corporate VCs face constraints but can succeed by developing unicorn-entrepreneurs and training skills-based ecosystems.
In a recent discussion with corporate early-stage venture capitalists, it was highlighted that most VC track records are not exemplary, with the Top 20 VCs earning the majority of VC returns. These top VCs, predominantly based in Silicon Valley, are able to fund potential unicorns consistently. Corporate VCs, on the other hand, often face constraints that limit their performance. However, by rethinking the role of VC, developing a skills-based unicorn-entrepreneur ecosystem, and targeting potential unicorns before the Top 20 VCs do, corporate VCs can increase their chances of success.
The key strategies outlined for corporate VCs to succeed include:
- Rethinking the role of VC by focusing on developing unicorn-entrepreneurs rather than ‘first-mover’ ideas.
- Developing a skills-based Unicorn-Entrepreneur Ecosystem (UEE) to train and evaluate entrepreneurs based on skills rather than instinct.
- Being the first financiers of potential unicorns in emerging industries to beat the Top 20 VCs and reduce risk.
By changing the rules of the game and focusing on skill development and early financing of potential unicorns, corporate VCs can increase their chances of success and compete with the top players in the industry.
