I started doing what I'm doing with the original plan of being the first step on my way to doing VC. Now I realize I can't make a direct transition. However, I may have a shot at working for the "New Business" arm of a major corporation that would provide exposure to wide ranging group of companies. Would be a very cool experience, I think, and would certainly make for a better transition.
Does anyone have experience or knowledge relating to a position like this? Clearly the comp is less and the investment process less dynamic, but beats the pants off going to b school.
Corporate VC can be a way to eventually transition into more traditional VC, but it will somewhat depend on what the group you join is focused on and what exactly "New Business" means. Some corporate VCs, like Intel Capital or Comcast Ventures, act pretty much the same as an independent VC firm, but their investment mandate is aligned with the strategic direction of the bigger businesses. At other companies, these types of groups may do some VC investing, but they also act in roles relating to corp dev, strategic partnerships, licensing agreements, etc. The experience could be pretty cool, either way, but firms that fit the first profile will be better for a later move into traditional VC.
Note: I haven't worked for any corporate VC group, but I regularly work with them on deals and have interviewed with a couple of them as well.
Thanks for the input, definitely helpful. It is the former as opposed to the latter. I take it you have a favorable view of these roles?
Generally, yes, it somewhat depends on the company/fund because some are clearly better than others, but it's a great option and should be a cool opportunity. Feel free to PM me if you want detail on the actual group (assuming that I know them).
Corporate VC - Cool Stuff Bro? (Originally Posted: 06/24/2014)
I've been approached by a CVC group within healthcare/biotechnology about an opportunity to work for them. Going through some older posts about CVC have been helpful, but being 2014 and all, corporate funds and their landscapes seem to be slightly more complex in structure, compensation, exits, etc..
Any insight into how CVC has changed in the recent year(s) (in terms of funding for partnering opps, compensation, etc..)? Any upside with career paths in CVC over VC? Do most of these funds still mold to the corporate goals, or are they trending to become separate entities?
It could be a great opportunity! You should go see how the culture and mission of the CVC is like. Also, do your due diligence and make sure the CVC didn't start few years ago.
CVC are usually aligned with the overall goal of the corporate they are a part of. For example, Home Depot's (fictional CVC) would probably not be doing any biotech deals.
Once you land a CVC position, I wouldn't really think about "exists", as this is really an exit for many people, and is chalk full of industry veterans. At this point, you are in a high point in your career. Your "exit" is just whatever you decide to do next.
I would make your decision based on the prominence of the corporate (fortune 500, 50, neither?) and the size of the fund. CVC is generally a good gig though.
Compensation is probably competitive with other private venture funds. Would be hard to imagine its any different, you need talented and credible investors to run your CVC, so they need good incentive to join you, otherwise you are risking running a sub-par portfolio--venture is never easy.
Agree with previous comment. Great launching pad to doing many things - CEO/Corp Dev of portfolio company, other types of buyside roles, traditional VC, etc.
one thing to consider: from what i heard, CVC, at least in europe, gives carry on a deal-by-deal basis and not on a team or company basis.. not sure what your role would be but if you hit it well, you made it, otherwise your all in wont be muc better than base... just saying
Appreciate the responses and feedback, SB's for everyone:
@"jojome" the CVC arm is fairly new, so by reading into your commentary, this seems like a good thing. @"DogeCoinForever" Haha I do not believe I'd be evaluating Home Depot light bulb ventures within our biotech portfolio either ;) . But overall, thanks for the clarity on exit, upside, and comp. @"markb" Thanks for making that distinction, I'll definitely think about that going forward.
Anyone here have experience with corporate VC? (Originally Posted: 02/19/2018)
Specifically post-MBA, in terms of how interesting/impactful the work is, career progression, comp, lifestyle etc. What kind of background do these groups look for?
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Corporate Venture Funds (Originally Posted: 12/11/2006)
How do the venture capital arms of major corporations differ from regular venture firms in terms of difficulty in getting a job? The type of work you will be doing?
good question
Yep, wouldn't mind some info too...
Would also be interested in comp at these places (would expected it to be much lower than VC), and which firms have the best divisions in this activity?
Not too sure myself
idk
maybe
Corporate VCs usually invest in line with the parent company's vision. A good example is Merck Serono Ventures; they invest in companies that must fit the parent company strategic vision and portfolio co's could get acquired by the parent if things went well. Returns are important (need to get some kind of positive IRR), but are secondary to the strategic aspect. VC professionals at such places get compensated like top corporate management, which has good downside protection, but not much upside (a 20x cash on cash return on a deal will get you a pat on the back, and decent year-end performance bonus, but not much more). Certain corporate VC funds have had issues retaining talent because of that and have introduced structures that can rival the upside of carry (often with extra cash bonuses with each exit, and a mix of options and restricted stock for long term incentives). Some other funds, like Intel Capital are much more similar to regular VC funds; their primary objectives is to make money for the parent, and if it fits the parent strategy, great, but it doesn't have to.
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