TLDR:
Some CVC units are lasting longer than the traditional four-year mark, with 17% reaching 10 years or more. They have a fast investment pace, invest in later-stage funding rounds, and have larger funds. Resiliency-phase CVC units differ in reporting structure, investment committee composition, and LP positions in other VC funds.
Article Summary:
Corporate venture funds are staying in operation longer, with some units reaching the resiliency phase after 10 years or more. These long-lasting CVC units have a faster investment pace, focusing on later-stage funding rounds and increasing capital allocation over the years. Key differences between resiliency-phase CVC units and the overall group include:
- Reporting Structure: Resiliency-phase CVC units are less likely to report to the CEO, with many reporting to the chief strategy officer instead.
- Investment Committee: These units involve heads of corporate business units on the investment committee, ensuring alignment with real business needs and potential collaboration opportunities.
- LP Positions: Long-lived CVC units tend to take more LP positions in other VC funds, showcasing a diversified investment strategy.
Overall, the data from the GCV Keystone survey highlights the importance of adaptability, alignment with business units, and diversified investment strategies for CVC units to reach the resiliency phase and thrive in the corporate venturing ecosystem.
