Latest news with #CVCs
Forbes
30-04-2025
- Business
- Forbes
What Startups Should Consider When Exploring Corporate VCs
Nicole LeBlanc is a partner at Toyota's growth fund, Woven Capital, focusing on mobility, sustainability and smart city investments. In today's economic climate, corporate venture capital (CVC) is gaining traction among founders as a critical investment partner. The numbers tell a compelling story: Although CVCs invest in less than a quarter of funding rounds, CVC-backed startups are twice as likely to raise follow-on funding and experience half the failure rate compared to companies backed solely by traditional venture capital (VC) firms. Given this, founders are increasingly faced with the decision of whether to turn to traditional VC or go with CVC investments. From my time as a partner at a CVC, I've found there are three key considerations startups looking at CVC backing should take into account. When evaluating CVCs, founders should first consider what I like to call the "phone-a-friend" advantage: access to the entire corporation's brain trust. Ask whether the CVC's parent corporation would provide access to its network of subject matter experts. This can help you gain invaluable insights that might otherwise take years to develop independently. This expertise can translate into real-world product feedback and validation for startups. The journey from innovative startup to market leader is fraught with challenges, particularly around scaling production and sales. As such, founders should ensure they're prioritizing CVCs that will provide access to mass production expertise, guidance and, yes, a bit of hand-holding. The firm you choose should be willing to educate and support you on the longer sales cycles that enterprises require. Founders who look for this form of strategic partnership can find valuable insight that helps them strengthen relationships with key decision-makers and accelerate market access. While many CVCs operate with similar return expectations as traditional VCs, CVCs typically have a parallel goal of seeking strategic value and insights from innovators while pursuing returns. This can translate into greater patience as CVCs seek to better understand new, fast-changing technologies and markets, which in turn can deliver greater payoffs across the parent company. Founders considering a CVC should ensure they're committed to long-term value creation over short-term gains. When navigating market turbulence and election cycles, sustained support can allow companies to extend their planning horizon, map out their road maps 18 months or more in advance and enable greater flexibility. The CVC landscape is undergoing a profound transformation. Historically viewed as slow-moving corporate extensions deploying small checks to buy strategic insights on the cheap, I'm finding that today's CVCs are becoming increasingly sophisticated operations that feature dedicated investment teams who combine startup speed with corporate muscle. This evolution is reflected in the numbers: In 2023, 12% of U.S. rounds were backed by corporate investors. This is a clear signal to me that CVCs are no longer just corporate innovation theater; they're becoming serious, committed partners in the startup ecosystem. For founders navigating today's fundraising environment, understanding the strategic value of CVC partnerships is more crucial than ever. Startups should ask themselves: Does the CVC's broader ecosystem offer potential benefits to my business, and has the corporate investor shown proven success with startups in similar industries? Not every CVC will be a fit for every startup. It's essential that startups look for CVCs that align with their target audience or market while ensuring there's no conflict of interest. Concerns around limited exit options—as CVC involvement can sometimes constrain future acquisitions or IPOs—and hesitation to share sensitive information with a potential competitor affiliated with a CVC are key points to consider. The best CVC-startup relationships are those where everyone shares the same strategic goal. Those startups that won't benefit from strategic insights or influential market connections may find more value in traditional investors. But in an era when capital efficiency and strategic growth matter more than ever, CVC partnerships may offer a compelling path forward. For startups that decide a CVC is the right choice for them, they can gain a partner who delivers value far beyond the check. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Hi Dubai
07-02-2025
- Business
- Hi Dubai
AI Investors Unveil Key Funding Strategies at AI Everything Global 2025
AI entrepreneurs must embrace adaptability and a forward-thinking mindset to attract investment successfully, experts advised at AI Everything Global 2025. The event, held at Dubai Exhibition Centre (DEC), hosted engaging discussions and featured a venture capitalist who revealed his reasoning behind investing in Elon Musk's AI startup, xAI. AI Investments Take Center Stage As part of the inaugural edition of AI Everything Global, AI investment strategies emerged as a critical focus. Organized by Dubai World Trade Centre (DWTC) in collaboration with GITEX GLOBAL, the event brought together thought leaders to discuss the rapid evolution of AI and its impact across industries. Global Investors Convene at AI Everything Global The event showcased the world's leading Investor Programme, attracting: 150+ top investors , including venture capitalists, family offices, funds, corporate venture capitalists (CVCs), accelerators, and angel investors. , including venture capitalists, family offices, funds, corporate venture capitalists (CVCs), accelerators, and angel investors. $70 billion in managed assets , positioning the event as a key platform for AI funding. , positioning the event as a key platform for AI funding. 250 AI-driven startups, offering investors exclusive pre-scheduled, targeted meetings through a dedicated concierge team. Expert Insights: What Investors Look for in AI Startups "Entrepreneurs Must Think Beyond the Product" – Igor Ryabenkiy Igor Ryabenkiy, Managing Partner at AltaIR Capital, shared his expertise in funding AI startups. With over 20 years in venture capital and investments in 350+ tech startups, including PandaDoc, Miro, and Deel, Ryabenkiy emphasized that successful AI businesses need more than just a great product. "The product is crucial, but founders must have a clear vision of their company's future trajectory. They need to anticipate market shifts, stand out in a highly competitive space, and be adaptable. Knowing their product inside-out is key, but being open to changes and demonstrating a clear path to execution is what truly attracts investors." "Investing in Musk's xAI Was a No-Brainer" – Kevin Jiang Another high-profile speaker, Kevin Jiang, Chief Investment Officer & Co-Founder of Mangusta Capital, discussed his firm's investment in xAI, Elon Musk's AI initiative focused on accelerating human scientific discovery. Jiang explained his approach to AI investments: "The AI ecosystem has two key components—infrastructure and applications. While billions are flowing into infrastructure, we focus on applications, where AI is actively transforming industries through automation and better decision-making." On investing in xAI, Jiang highlighted: "We secured an early allocation last year, and it has been a strong-performing investment. Our decision was based on Elon Musk's vast ecosystem, which provides a unique data set that no one else has. When evaluating AI companies, we look at which ecosystem offers the strongest competitive advantage, and without a doubt, Elon's ecosystem stands out." AI Everything Global 2025 Concludes with Transformative AI Innovations The inaugural AI Everything Global 2025 wrapped up with impactful sessions and cutting-edge AI-led solutions, highlighting AI's rapid expansion across industries. The event solidified its reputation as the world's premier AI investment and innovation platform, setting the stage for even greater advancements in AI entrepreneurship and funding in the years to come. Visit Website to Learn More News Source: Seven Media
