Ernst & Young (EY) tapped Mach49 to collaborate on a new study examining how corporate venture drives growth and cutting-edge technology. Mach49 was selected to co-create the “Why now may be the time to start a corporate venture fund” study due to our decades of top-tier Silicon Valley venture capital experience and track record building and launching world-class corporate venture programs.
In order to look to the future and build sustainable growth, companies continue to turn to corporate venture, which enables them to benefit from the latest products, technologies, and learn from new geographies. While some companies may initially be attracted by the return on investment, a KPI that top corporate venture leaders focus on is “return on innovation.” This requires each investment to be aligned with the parent company (or mothership) goals to drive further synergy.
Historically driven by M&A and in-house innovation, companies that put an emphasis on corporate venture can cut down on the time and resources required to explore exciting new tech and fill capacity gaps. To benefit from this, companies need to shift their mindset. First, this often requires the right partners who bring a startup mentality and nimbleness. And, second, corporate investing teams must have autonomy and decision-making power from the mothership. Then they are able to implement startup-friendly processes that enable fast decision-making.
The EY and Mach49 study answers key questions in corporate venture:
1. Why should stakeholders support the creation of a CVC fund?
2. What characteristics do successful corporate venture funds have in common?
3. What differentiates effective funds?
4. How will investments be sourced and executed?
5. How will motherships and startups interact?
6. What does success look like?
Learn more CVC best practices in the full report that pulls insights from the most effective corporate venture funds and their advisors.
Mach49 works with forward-thinking corporations to build and grow corporate venture groups that drive growth. We’ve partnered with TDK Ventures, Goodyear, Hypertherm, Pernod Ricard, and many more global businesses to make impactful investments that disrupt the mothership from the outside in. Get in touch to learn how we can accelerate your corporate venture goals.