Formation & Launch
While being clear on what can be achieved and how to go about achieving it are fundamental to a successful Corporate Venture Capital (CVC) practice, building a sustainable effort requires the right people, processes, incentives, positioning, and resources.
We often encounter firms which have a good sense of their technology targets and the goals of the program need the help of an experienced partner to help them gather and align the elements necessary for success.
In the Formation Stage, Synchrony partners with our client firm to blueprint and create a cost-effective, well-aligned, properly resourced CVC practice.
Issues covered during this stage include:
- Model for engaging with the innovation ecosystem and generating dealflow
- Target deal stages & sizes
- Prospective investing partners
- Screening, evaluation and due diligence processes
- Fund structure
- Investment approval and governance model
- Model for joint development / partnering
- How to secure and deliver complementary assets
- Operating budget
- Concrete goals & metrics for success
At the end of the Formation Stage the client has a functioning blueprint for the CVC unit – a playbook for execution which includes budget, headcount, roles & responsibilities, compensation model, target spaces and goals for outcomes. This is also the point in the process at which the client should decide whether to implement the Innovation CapitalTM system of the long-term as the primary management tool for its CVC practice.