WHAT IS CORPORATE VENTURE CAPITAL?

CVC firms are corporately-owned investment firms that provide startups with capital in exchange for equity. Where VC firms typically focus solely on delivering the highest financial returns to investors, CVCs tend to have a more strategic interest in investing in companies. These investments can help brands better understand a new business line, technology, or model while providing access to talent and technology otherwise unavailable. CVC investments allow brands to participate in more disruptive research and development than typically occurs “on the balance sheet.”

WHY SHOULD MARKETERS CARE?

When brands make capital investments, they position themselves to benefit in several ways. CVC investments are generally smaller and therefore less risky than mergers and acquisitions. The investments provide a great way to experiment in a new category or business model, and investors have the first opportunity or right of refusal when a startup is ready to go commercial.

 

Investing firms gain “hands-on” experience in new technology, media, or whatever is the focus of their investment. CVC investments often include resources, such as marketing expertise, that accelerate startup success. There are also built-in mentoring relationships between the investing firm and the startup that facilitates a healthy exposure; investors can learn from the startup cultures and vice versa.

HOW CAN IT HELP YOUR BUSINESS?

A CVC initiative can provide several strategic advantages to a firm. It is an affordable way to “future proof” a business by investing in new platforms or lines of business. It provides a method for testing different ways of moving forward without having to go “all in” on an acquisition.

 

A CVC investment has the potential to imbue a brand’s customer insights into a product as it’s being built while also creating the potential for new stream of revenue.

The Future of Work, with Russ Perry of Design Pickle

For the majority of the U.S. workforce, the past three months have been a complete paradigm shift in what’s considered “business as usual.” Millions of us are, for the first time in our careers, working entirely remotely, and brands across the country are scrambling to establish a “new normal.” But what if your entire workforce was remote to begin with? Marketing Futures spoke with Russ Perry, the founder of Design Pickle, a member of Inc.’s 500 fastest growing companies in 2019, about what it’s like to manage a staff of more than 400, of which only a small handful live and work in the company’s headquarter city of Scottsdale, Arizona. Russ discussed what the first few weeks of the COVID-19 crisis were like for Design Pickle, and shared advice for leaders looking to maintain creativity and camaraderie from afar.

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Get Up Stand Up: Brand Response to Black Lives Matter

Brands share a unique voice that consumers pay close attention to, and marketers can choose to amplify or mute that voice. Brand responses to the COVID-19 crisis have run the gamut from sensitive to tone-deaf, and consumer perception of those brands can change as a result of their responses. As the United States struggles with racial and policing issues, what can brands do to show they are fully allied to current causes, and not just toeing the line, or worse, throwing fuel on the fire?

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WHAT IS CORPORATE VENTURE CAPITAL?

CVC firms are corporately-owned investment firms that provide startups with capital in exchange for equity. Where VC firms typically focus solely on delivering the highest financial returns to investors, CVCs tend to have a more strategic interest in investing in companies. These investments can help brands better understand a new business line, technology, or model while providing access to talent and technology otherwise unavailable. CVC investments allow brands to participate in more disruptive research and development than typically occurs “on the balance sheet.”

WHY SHOULD MARKETERS CARE?

When brands make capital investments, they position themselves to benefit in several ways. CVC investments are generally smaller and therefore less risky than mergers and acquisitions. The investments provide a great way to experiment in a new category or business model, and investors have the first opportunity or right of refusal when a startup is ready to go commercial.

 

Investing firms gain “hands-on” experience in new technology, media, or whatever is the focus of their investment. CVC investments often include resources, such as marketing expertise, that accelerate startup success. There are also built-in mentoring relationships between the investing firm and the startup that facilitates a healthy exposure; investors can learn from the startup cultures and vice versa.

HOW CAN IT HELP YOUR BUSINESS?

A CVC initiative can provide several strategic advantages to a firm. It is an affordable way to “future proof” a business by investing in new platforms or lines of business. It provides a method for testing different ways of moving forward without having to go “all in” on an acquisition.

 

A CVC investment has the potential to imbue a brand’s customer insights into a product as it’s being built while also creating the potential for new stream of revenue.

“Venture Capital itself is likely not changing from its current model, but I do believe the future will see every Fortune 1000 company having a play in Corporate Venture Capital and new models for venture capital that don’t require a company to exit through IPO or M&A only.”

Dave Knox

Strategic Advisor

Predicting the Turn

Podcast

Corporate Venture Capital, with Jessica Peltz of MDC Ventures

Pciture of Matt Sweeney CEO of Xaxis North America

Jessica Peltz

In the quest to keep up with technological advancements, brands are beginning to enter the world of venture capitalism to "get in on the ground floor" of the next game-changing innovation. But what type of partnerships make sense for brands, whose objectives aren't quick profit, but learnings and competitive advantages? And how does a brand even enter this space? We spoke with Jessica Peltz of MDC Ventures, who shared her journey into the world of Corporate VC, and discussed some tech developments marketers should keep an eye on.

Related Content

Want to take a deeper dive into corporate venture capital? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

Corporate Venture Capital: Finding Your Path to Success

Forbes. October 2019

Venture investor Bedy Yang shared how her thoughts on Corporate Venture Capital have evolved over the years, and how many CVC firms have shed the reputation for being slow-moving and strategy deficient. She also provided tips for brands looking to enter the space.

Making Corporate Venture Capital Work 

MIT Sloan. June 2019

Corporate venture capital is steadily rising in the market. While technology giants like Google, Intel, and Salesforce were the most active investors, CVC units have been established by corporations across the globe in many industries beyond tech. Johnson & Johnson, Mitsubishi, Robert Bosch, Unilever, Novartis, and Airbus are just a sample of corporations that recently established CVC activities.

The Takeover of Corporate Venture Capital

VC Cafe. June 2019

Today 77% of Fortune 100 companies (Top 100 US Companies based on Revenue) invest in venture capital, and 52% of Fortune 100 companies have their own investment arms. The large tech companies like Intel (Intel Capital), Google (GV, Capital G, Gradient Ventures), Salesforce (Salesforce Ventures) or Microsoft (M12) are amongst some of the most active investors in tech, and have demonstrated strong financial performance to date.

Download Now!

CVC firms are corporately-owned investment firms that provide startups with capital in exchange for equity. Where VC firms typically focus solely on delivering the highest financial returns to investors, CVCs tend to have a more strategic interest in investing in companies.
 
ANA Marketing Futures spoke to marketers and experts across industries to get their opinion on the value and viability of this emerging trend, and created a guide to help brands invest in a brighter future.

DaveKnox

Strategic Advidor

Predicting the Turn

“Venture Capital itself is likely not changing from its current model, but I do believe the future will see every Fortune 1000 company having a play in Corporate Venture Capital and new models for venture capital that don’t require a company to exit through IPO or M&A only.”

Key Stats

ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.

Related Content

Want to take a deeper dive into corporate venture capital? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else. 

Corporate Venture Capital: Finding Your Path to Success

Forbes. October 2019

Venture investor Bedy Yang shared how her thoughts on Corporate Venture Capital have evolved over the years, and how many CVC firms have shed the reputation for being slow-moving and strategy deficient. She also provided tips for brands looking to enter the space.

Making Corporate Venture Capital Work

MIT Sloan. June 2019

Corporate venture capital is steadily rising in the market. While technology giants like Google, Intel, and Salesforce were the most active investors, CVC units have been established by corporations across the globe in many industries beyond tech. Johnson & Johnson, Mitsubishi, Robert Bosch, Unilever, Novartis, and Airbus are just a sample of corporations that recently established CVC activities.

The Takeover of Corporate Venture Capital

VC Cafe. June 2019

Today 77% of Fortune 100 companies (Top 100 US Companies based on Revenue) invest in venture capital, and 52% of Fortune 100 companies have their own investment arms. The large tech companies like Intel (Intel Capital), Google (GV, Capital G, Gradient Ventures), Salesforce (Salesforce Ventures) or Microsoft (M12) are amongst some of the most active investors in tech, and have demonstrated strong financial performance to date.

Download Now!

CVC firms are corporately-owned investment firms that provide startups with capital in exchange for equity. Where VC firms typically focus solely on delivering the highest financial returns to investors, CVCs tend to have a more strategic interest in investing in companies.

 

ANA Marketing Futures spoke to marketers and experts across industries to get their opinion on the value and viability of this emerging trend, and created a guide to help brands invest in a brighter future.

About ANA Marketing Futures

Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.

 

ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.

 

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