Professional Documents
Culture Documents
Vermeulen
Total CVC
75
50
LP in VC Fund
LP in VC Fund (Optimized)
25
Corporate/Direct off
the balance sheet
Spin-off (1 LP)
0
2010 (Est.)
2011
2012
2013
2014 (Est.)
40
30
LP in VC Fund (Optimized)
Corporate/Direct off
the balance sheet
20
10
Spin-off (1 LP)
0
2010 (Est.)
2011
2012
2013
2014 (Est.)
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
Investors
Harvesting &
Distribution of Returns
Fundraising
Exit
VCs
Developing
Contracting
Portfolio Companies
Investors
Harvesting &
Distribution of Returns
Fundraising
Exit
Developing
Contracting
SpinOuts
Portfolio Companies
VCs
Harvesting &
Distribution of Returns
70000
24
60000
20
50000
16
40000
12
30000
20000
10000
Exit
Open Innovation
Acquisitions
Developing
Why?
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Herd Behaviour
Lack of Focus/Interest
Lack of Internal Know-how/Talent
Internal Politics
Wrong Incentive Structures
Disappointing Performance
Regulatory Issues
80"
70"
60"
50"
40"
SUCCESSFUL
T R A N S F O R M AT I O N
30"
20"
10"
0"
Direct
Sub"(VC"Compensa9on)"
(VC Compensation)
90"
Sub"(Non<VC"
Direct
Compensa9on)"
SUCCESSFUL
T R A N S F O R M AT I O N
Spin<o"(1"LP)"
Spin-off (1 LP)
Spin<o"(1+"LPs)"
80"
70"
60"
50"
40"
SUCCESSFUL
T R A N S F O R M AT I O N
30"
20"
10"
0"
Direct
Sub"(VC"Compensa9on)"
(VC Compensation)
90"
Sub"(Non<VC"
Direct
Compensa9on)"
SUCCESSFUL
T R A N S F O R M AT I O N
Spin<o"(1"LP)"
Spin-off (1 LP)
Spin<o"(1+"LPs)"
80"
70"
60"
50"
40"
SUCCESSFUL
T R A N S F O R M AT I O N
30"
20"
10"
0"
Direct
Sub"(VC"Compensa9on)"
(VC Compensation)
90"
Sub"(Non<VC"
Direct
Compensa9on)"
SUCCESSFUL
T R A N S F O R M AT I O N
Spin<o"(1"LP)"
Spin-off (1 LP)
Spin<o"(1+"LPs)"
80"
70"
60"
50"
40"
SUCCESSFUL
T R A N S F O R M AT I O N
30"
20"
10"
0"
Direct
Sub"(VC"Compensa9on)"
(VC Compensation)
90"
Sub"(Non<VC"
Direct
Compensa9on)"
SUCCESSFUL
T R A N S F O R M AT I O N
Spin<o"(1"LP)"
Spin-off (1 LP)
Spin<o"(1+"LPs)"
80"
70"
60"
50"
40"
SUCCESSFUL
T R A N S F O R M AT I O N
30"
20"
10"
0"
Direct
Sub"(VC"Compensa9on)"
(VC Compensation)
90"
Sub"(Non<VC"
Direct
Compensa9on)"
SUCCESSFUL
T R A N S F O R M AT I O N
Spin<o"(1"LP)"
Spin-off (1 LP)
Spin<o"(1+"LPs)"
Key Takeaways
Corporate Engagement in VC is IMPORTANT,
But Highly Variable, Cyclical (Herding)
Strategic Aims Must Take the Backseat to Align
Incentives, Expectations, Aims w/ Startups =
FOCUS ON FINANCIAL RETURNS!
Corporates Can Have Role in Ecosystem, But
Only Under 2 Specific Circumstances:
Fund-of-Funds
Secondm
ent
Partner
VC Fund
Past Performance
Top-quartile funds often over-subscribed
Future Performance
Disruptive (entrepreneur-friendly)
Visible
Hyper-active
Key Takeaways
Corporate Engagement in VC is IMPORTANT,
But Highly Variable, Cyclical (Herding)
Strategic Aims Must Take the Backseat to Align
Incentives, Expectations, Aims w/ Startups =
FOCUS ON FINANCIAL RETURNS!
Corporates Can Have Role in Ecosystem, But
Only Under 2 Specific Circumstances:
1) Corporates must act like a VC
2) Otherwise, its best that they
invest directly in a VC, FoF (as a
real partner)
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