Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    Corporate Venture

    Uploaded by

    RASHMI RASHMI
    The document discusses McKinsey's framework for corporate venture capital (CVC). [1] It outlines four key steps for CVC analysis: 1) an overview of CVC trends, sizes, and deals; 2) deal analysis and documentation; 3) case studies of representative CVCs; and 4) key learnings and recommendations. [2] The framework is meant to help corporates partner effectively with startups by understanding CVC rationales and strategies to maximize value creation. [3] Recommendations include defining clear strategic and financial returns for the CVC, setting mandates aligned with corporate strategy, and equipping the CVC with proper decision-making processes and organization.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Corporate Venture

    Uploaded by

    RASHMI RASHMI
    19 views1 page
    The document discusses McKinsey's framework for corporate venture capital (CVC). [1] It outlines four key steps for CVC analysis: 1) an overview of CVC trends, sizes, and deals; 2) deal analysis and documentation; 3) case studies of representative CVCs; and 4) key learnings and recommendations. [2] The framework is meant to help corporates partner effectively with startups by understanding CVC rationales and strategies to maximize value creation. [3] Recommendations include defining clear strategic and financial returns for the CVC, setting mandates aligned with corporate strategy, and equipping the CVC with proper decision-making processes and organization.

    Original Description:

    corporate venture

    Original Title

    CORPORATE VENTURE

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses McKinsey's framework for corporate venture capital (CVC). [1] It outlines four key steps for CVC analysis: 1) an overview of CVC trends, sizes, and deals; 2) deal analysis and documentation; 3) case studies of representative CVCs; and 4) key learnings and recommendations. [2] The framework is meant to help corporates partner effectively with startups by understanding CVC rationales and strategies to maximize value creation. [3] Recommendations include defining clear strategic and financial returns for the CVC, setting mandates aligned with corporate strategy, and equipping the CVC with proper decision-making processes and organization.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views1 page

    Corporate Venture

    Uploaded by

    RASHMI RASHMI
    The document discusses McKinsey's framework for corporate venture capital (CVC). [1] It outlines four key steps for CVC analysis: 1) an overview of CVC trends, sizes, and deals; 2) deal analysis and documentation; 3) case studies of representative CVCs; and 4) key learnings and recommendations. [2] The framework is meant to help corporates partner effectively with startups by understanding CVC rationales and strategies to maximize value creation. [3] Recommendations include defining clear strategic and financial returns for the CVC, setting mandates aligned with corporate strategy, and equipping the CVC with proper decision-making processes and organization.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    McKinsey Innovation Frontier Framework

    C a s e s
    Venture Client
    Corporate
    Platform Corporate
    Development Development
    Venture
    Building
    U s e

    Accelerator
    Incubator M&A
    S t r a t e g i c

    Venture

    Value
    Traditional Innovation Events Capital
    Venture Capital Exploration
    Sharing resources

    CORPORATE VENTURE CAPITAL


    Understand the recent trends around how and why corporates partner with start-ups.
    Disruptive potential
    Main Objective - Rationale and mandate for CVC funds
    - Entry and exit strategy implications

    cvc
    1 2 3 4

    CVC OVERVIEW DEAL ANALYSIS CASE STUDIES KEY LEARNINGS


    Conduct a quantitative
    analysis: trends, sizes, List and document CVC deals:
    Set up criteria to select the
    categorization of deals and - Volume per year
    most representative and
    CVC - Holding period Synthetize key learnings
    insightful CVC
    Select representative scope - Type of exit Formulate actionable
    Select deals and deep dive:
    and deep dive on deals - Geography recommendations on strategy
    - CVC mandates
    rationales' (strategy, financial - Industry and operations for CVCs to
    - Start-ups scanning
    returns…) Identify trends and infer exit maximize value creation
    - Investment assessments
    Formalize key trends and strategies
    - Exit strategies
    deals rationales Formalize key takeaways

    Preq-in & Pitchbook databases analysis In-depth interviews with experts Group brainstorming sessions
    Curation of industry research

    Short overview of development Assessment of exit strategies of Key takeaways of Top CVCs Recommendations for strategy
    of CVC CVC modus operandi and operating model of CVC

    Results from CVC


    Recommendations to setup successful CVCs

    Define which RETURNS matter for the organization


    Strategic returns Financial Returns
    To keep updated with corporate strategy
    Investing is a tool for Investing is itself a revenue Set a clear target, in-betweens often set the CVC for failure
    Corporation to increase its streams Investing is a tool for Corporation to increase its
    revenue/activities
    revenue/activities though
    Investigate/explore new markets.
    Prepare for future disruption
    Active Define a MANDATE aligned with corporate strategy
    investors Will returns be measured directly or indirectly
    Get involved
    List targeted industries and technologies
    in the Define targeted geographies/markets
    startup’s Clarify financial expectations
    growth
    Define acceptable risk
    Equip the CVC with relevant DECISION-MAKING process
    To keep updated with corporate strategy
    Implement instances to assess strategic stakes on regular basis.
    Passive
    investors Clarify and update assessment score cards for strategic stakes
    Setup the RELEVANT ORGANIZATION
    Only
    financial Provide sufficient funds and enable relevant holding period
    investors Adjust organization, create processes for time-efficient
    sponsorship
    Adapt incentives

    G R O U P 0 3

    You might also like