Startup Funding Espresso -- How to Set Up a Corporate VC
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Corporate VCs follow the startup cycle with many launching their programs at the peak of the cycle. Most Corporate VCs last about 4 to 6 years, at which point the economic cycle creates a challenging environment for the company. To be successful at running a corporate VC, you\u2019ll need to do the following: Set goals that are aligned with the corporation. Are you doing research, learning from the market trends, or driving acquisitions? Are you pursuing a financial return or a strategic one? If pursuing a strategic one, determine the KPIs you'll use to measure success. Decide what stage company you want to pursue as there's a big difference between early and late-stage companies with respect to sourcing the deals and controlling the outcome. Startup investing is typically a long-term investment with a 7 to 10-year horizon. You'll need to make sure the management team and company can commit to that timeframe. Understand the cultural differences between a multi-decade old company and a six-month-old startup. Sourcing deals can be a challenge if you don't have connections in the startup world. Managing a startup is different from managing a business unit in the company. The needs of a startup are entrepreneurial and don't necessarily fit into the company's current support set. Make sure you incentivize the management team properly for the fund as they can find more lucrative jobs in the VC space. Finally, set up a dedicated fund for the process so you can support the portfolio with follow on rounds.\xa0Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of