Time matters to CVC units, with ~40% of our respondents having mandates of ≤5 years, or half of a typical VC fund. New firms should find the right partner to share their expertise, network, and best practices in venture investment and deal flow. This can be particularly valuable in the first year of operation before flying solo.
Instead of prescribing a one-size-fits-all approach, we identified two particularly successful profiles of CVC personas navigating the startup ecosystem: The “Hunter” persona who operates as a financially-driven investor with an entrepreneurial culture, and the “Explorer” who is more strategically-focused and embraces a more corporate culture.
This is a key principle to establishing a CVC unit. 55% of our respondents say they are strategically inclined, versus 28% who claim to be financially motivated. After this is decided, all other aspects can be optimized (organizational structure, incentive scheme, investment thesis).