Investor Relations in Corporate Venturing

Top Management Influence

For most companies the decision to initiate a CVC program entails a strategic rearrangement and rethinking of the established corporate culture. The latter is significantly influenced by the personality and behavior of top management. Hereby we investigate the roll of management in the decision to establish a CVC unit and how it can support the long-term success thereof.

Syndication of Investments

It can be seen that a large number of financing rounds are completed by a group of investors. This syndication lowers the risk for the single investor by allowing a stronger portfolio diversification through a larger number of smaller investments in different companies. Furthermore different investors provide the startup with access to a wider range of expertise during its development thus increasing the chances that the company will survive. The contribution that corporate investors can make in this are due to their ties to their parent is one of the reasons for the speed with which young CVC units are able to enter into established VC networks. The members of this networks profit additionally from the fact that they alert one another to potentially interesting investment opportunities. Despite its advantages syndication is not a trivial process since there is much room for conflict due to diverging goals of the syndicate members. If this conflict cannot be solved it is possible for a portfolio company to go bankrupt. Through qualitative interviews with experts the Investment Lab is investigating how syndicate partners can jointly help to develop a startup successfully and which factors influence the original formation of syndicates. In order to extensively answer these questions we are speaking to executives of CVC units, independent VCs and the startups that received financing. 

Project members

  • Dr. Jochen Becker

Presentations at conferences and seminars

  • Kappenthuler, S., & Becker, J. 2015. Syndication in Corporate Venture Capital. Presented at ETH MTEC Research Seminar, Zurich, Switzerland.

Cooperation partners