TLDR: Corporate venture funds are surviving longer, with some units reaching a “resiliency phase” after 10 years of operation. Key factors that long-lasting CVCs do differently include increased investment pace, focus on later-stage funding rounds, and taking limited partner positions in other VC funds. Additionally, these units tend to report to the chief strategy officer rather than the CEO, and involve heads of corporate business units on their investment committee.
In a recent survey, it was found that long-lasting CVC units:
- Tend to have a fast investment pace, making more than 10 investments a year.
- Are more likely to invest in later-stage funding rounds.
- Take limited partner positions in other VC funds.
Corporate venture funds are evolving, with successful units moving away from CEO supervision, involving business units on the investment committee, and making multiple investments in other venture funds. These factors contribute to the longevity and resilience of CVC units in the ever-changing market landscape.
