TLDR:
– Corporate interest in building companies is increasing
– Corporates are seeking to create their own startups as part of their venturing toolkit
In a recent webinar hosted by GCV and Fenwick & West, experts shared five tips for corporates looking to build their own startups.
From choosing the right team to setting up the right legal structure, here are the key takeaways:
1. Decide on internal or external venture building
– Choose between using external venture studios or building ventures internally
– Figure out the best structure to align with strategic goals
2. The venture studio model
– Venture studios like AI Fund partner with corporates to launch companies based on AI
– Flexibility in co-investment with corporates
3. Building ventures internally
– SC Ventures sets up separate legal entities for ventures launched internally
– Importance of the right legal structure for internally built ventures
4. Hiring external people vs. relying on internal expertise
– Importance of hiring external talent to lead new ventures
– Mix of internal and external talent for diversity in thinking
5. Figure out the cap table
– Key to attracting venture capital investment
– Stakes for venture studios and internally built ventures
These tips aim to help corporates navigate the venture building process more successfully and increase their chances of building successful startups.
