The best founders are wary of corporate venture capital (CVC) firms. 

The wariness stems from the following:

Misaligned Incentives: CVC firms often have different objectives compared to traditional venture capital (VC) firms. Their primary goal may be strategic, such as gaining access to innovative technologies or expanding their market reach, rather than generating financial returns for the startup. 

Short-Term Goals: Some CVCs may be driven by short-term objectives that align with their parent corporations' immediate needs. This can lead to concerns among founders that the CVC's investment horizon may not align with their long-term vision for the startup. 

Risk of Closure: CVCs, due to their association with larger corporations, are often subject to restructuring or closure if the parent company decides to change its strategic direction. 

Potential Bureaucracy: Large corporate structures often bring bureaucracy and decision-making hurdles. 

Limited Operational Support: Unlike traditional VCs, CVCs may lack the operational support and mentorship capabilities that startups often seek. Sure, corporate distribution channels and domain expertise are very valuable assets, but not so much if they get bogged down in bureaucracy.

Influence Over Startup Direction: Startups may be concerned that a CVC's strategic goals could influence the direction of the company, potentially diverting it from its original vision.

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Most CVC firms have a poor online presence - an this is an opportunity

Here’s the thing, if your CVC firm is different, the best founders need to know this otherwise they’re going to take their business and their cap table to traditional VC firms. 

Most CVC firms have a solitary webpage on the corporate mothership’s website, often with little information on it other than maybe some portfolio companies and some news snippets.

If I’m being approached or doing my due diligence on a firm, this is unlikely to fill me with confidence, and it’s almost definitely not going to generate any quality inbound deal flow. 

But this presents an opportunity for CVC firms that take a leaf out of the books of Jason Calacanis, Harry Stebbings, a16z, First Round Capital, AirTree Ventures, Blackbird VC and others that are taking content strategy seriously.

With the top 2% of venture firms globally capturing 95% of returns, content is becoming essential to generating quality deal flow.

Here’s why it matters to CVC firms.  

1. Cultivating Trust through Transparency

Content allows CVCs to establish transparent communication channels, articulating their investment strategies, and overall vision. By doing so, they can win over founders who appreciate the clarity and candor in the partnership.

2. Demonstrating Industry Expertise

Founders look for investors who bring more than just funds to the table. They value domain expertise and industry know-how. Content, such as thought leadership articles, industry reports, and case studies, allows CVCs to prove their in-depth understanding of the sectors they invest in. This expertise not only fosters trust but also reinforces the belief that the CVC can be a valuable collaborator in a startup's scaling journey.

3. Elevating Visibility and Reputation

Many CVCs operate in the shadows of their corporate parents, often remaining invisible within the startup landscape. Through the creation of an independent online presence and the consistent production of high-quality content, CVCs can elevate their brand reputation, asserting themselves as significant players in the venture capital arena.

4. Cultivating Organic Inbound Deal Flow

Startup founders seek investors who offer more than just financial backing; they desire access to networks, mentorship, and resources. Compelling content can draw founders and startups to CVC firms naturally rather than having to chase them. By becoming known for their valuable content in their chosen sectors, CVCs can pull in ambitious entrepreneurs looking for the right investment partner.

5. Spotlighting Success Stories

Content offers an ideal platform to share portfolio success stories and emphasize how CVC investments have fueled growth for these companies. These narratives serve as solid proof points, reinforcing trust in the CVC's capacity to drive value for startups.

Closing Thoughts

It's high time for CVCs to step into the spotlight, begin producing content that resonates with founders, and demonstrate that they are not just corporate investors but genuine partners on the startup journey. 

Want help crafting and executing on your CVC firm's content strategy? Get in touch for a free strategy call.