Corporate venture capital

Fresh ideas and approaches are challenging companies from all industries. Most company leaders expect to experience more disruptive competition during the next five years. Truly innovative companies are transforming their industries from within or entering into entirely new industries and markets.

Innovation takes many different forms and the most successful companies employ several operating models such as open innovation, corporate venturing, incubators, accelerators and design thinking to drive results. Digital technologies are also serving a crucial role by creating high value for organisations in relation to their ability to innovate.

Corporate venturing has become a key component in many companies’ quest for growth. By investing in other innovative companies, organisations can access cutting edge technologies, discover novel products and experiment with different business models.

Issues

  • Establishing a CVC operation requires careful planning to optimise the chances of success
  • CVC strategic alignment and integration with the company operations must be planned and managed to drive innovation
  • CVC operations can be highly tax efficient if investments are structured correctly
  • Depending on the scope of their activities, CVCs may require authorisation from financial regulators
  • While the CVC is often in prime position to assess the commercial risks associated with new investments, help with financial and legal due diligence is usually needed
  • CVCs, like independent venture capitalists, seek to maximise their return on investments

How we can help

We understand the challenges a company faces setting up and running a Corporate Venture Capital business. Our experience leading corporate venture funds and incubators, our industry and technical expertise and our innovation services, including PwC Digital, position us as your innovation partner of choice. Our services encompass all aspects of creating, implementing and running a CVC business, putting us in a unique position to advise the CVC throughout its lifetime.