3 Reasons Why LPs Should Look at Studio Models in 2025

The venture capital landscape is experiencing a seismic shift. With traditional VC funds struggling to deliver consistent returns and Limited Partners (LPs) facing unprecedented challenges in deploying capital effectively, a new model is emerging as a compelling alternative: venture studios. As we navigate through 2025, the data tells a clear story, venture studios are not just outperforming traditional investment models, they're redefining what institutional investors should expect from their venture allocations.

1. Superior Returns and Risk-Adjusted Performance

The numbers don't lie: venture studios are delivering exceptional results that should make every LP take notice. Venture studios demonstrate Internal Rates of Return (IRR) that are approximately double those of traditional venture capital benchmarks, with a 24% exit rate compared to just 14% for both accelerators and founders-first VCs. This outperformance becomes even more impressive considering speed to liquidity, studio startups are acquired 33% faster and take 31% less time to IPO.

The systematic approach delivers consistent results: 84% of studio startups raise seed rounds and 72% reach Series A funding, compared to just 42% of traditional ventures reaching Series A. Real-world success stories like Moderna, Twilio, and Bitly demonstrate this isn't coincidence but systematic value creation. For LPs grappling with poor distributions from traditional VC funds, less than 10% of 2021 funds have had any DPI after 3 years, venture studios offer a proven alternative with both higher returns and faster liquidity events.

2. Accelerated Time-to-Market and Capital Efficiency

The venture studio model delivers unprecedented speed and capital efficiency, with startups reaching Series A in just 25.2 months compared to industry averages. This acceleration stems from studios' systematic approach, proactively identifying opportunities, assembling expert teams, and providing comprehensive operational support from day one, eliminating the founder learning curve that typically consumes years and millions. The operational leverage is particularly evident in AI-driven markets, allowing studios to deploy cutting-edge infrastructure across their entire portfolio simultaneously. 

3. Market Momentum and Strategic Positioning for the Future

The institutional investment landscape is rapidly shifting toward venture studios, positioning early LP adopters for significant advantages. In 2024, venture studio funds were nearly twice as common as accelerator funds, accounting for 10.3% of all venture capital funds launched compared to 5.5% for accelerators.

This trend reflects a broader recognition among sophisticated investors that the traditional VC model faces structural challenges. VC fundraisers raised $76.1 billion in 2024, making it the lowest fundraising year since 2019, while only 30% of Limited Partners (LPs) are looking to add VC managers to their portfolios, down 36 points from previous years. The shift represents more than just performance metrics, it's about alignment and control. Traditional VC funds face inherent conflicts between generating management fees and optimizing portfolio returns. Venture studios, by contrast, earn equity through direct value creation and capital investment, aligning their interests more closely with LP returns.

Final Thoughts 

The venture capital industry stands at an inflection point, with traditional models struggling to deliver consistent returns in today's fast-paced, technology-driven market. Venture studios represent a fundamental reimagining of how institutional capital can be deployed, offering LPs superior risk-adjusted returns, faster liquidity, and strategic positioning for the future backed by robust data and proven track records. The question isn't whether venture studios will continue to outperform traditional VC models, the data already confirms this reality, but whether LPs will recognize this shift early enough to capture the significant alpha still available. As we progress through 2025, the LPs who embrace venture studios today will likely look back on this decision as a defining moment that positioned them at the forefront of the next generation of venture capital.

How We See the Future of Company Building at Mandalore Partners

At Mandalore Partners, we believe the future of company building is fundamentally different from what we've seen before. As we navigate through 2025, we're witnessing a paradigm shift that goes beyond traditional venture capital models, and we're positioning ourselves at the forefront of this transformation.

The old playbook of throwing capital at promising startups and hoping for exponential returns is not just outdated; it's counterproductive in today's complex business environment. We've observed that the most successful companies of the past five years weren't just well-funded, they were strategically guided, operationally supported, and deeply integrated into their target industries from day one.

Our Vision: Beyond Capital to Strategic Partnership

We've spent years observing the venture capital landscape, and frankly, we believe the traditional model is broken. The industry generated $149.2 billion in exit value in 2024, yet despite a $47 billion increase in overall deal value, we saw 936 fewer deals compared to the previous year. This tells us something profound: the market is demanding quality over quantity, strategic depth over transactional relationships.

At Mandalore, we see this as validation of our core thesis. The future belongs to companies that receive more than just capital, they need strategic expertise, operational support, and deep industry integration. This is why we've pioneered our Venture Capital-as-a-Service (VCaaS) model.

What We Mean by Venture Capital-as-a-Service

At Mandalore Partners, we don’t just write checks and step back, we embed ourselves as strategic partners through our VCaaS model, transforming how corporations build and scale innovation. Unlike traditional VCs, we stay hands-on from idea to market leadership, providing not only capital but deep regulatory expertise, industry networks, and operational insight. Our work with insurtech startups shows how this integrated approach turns potential into market dominance, proving that success hinges on more than just technology—it demands the right strategic guidance. With 93% of CEOs set to maintain or grow corporate venture investments in 2024, our model is exactly what forward-thinking companies need: a trusted partner to co-architect their future.

Our 6 Ss Framework: The Architecture of Success

We've developed what we call the 6 Ss model, our proprietary framework that has become the gold standard for successful company building in the modern era. This isn't theoretical; it's battle-tested across dozens of portfolio companies and multiple market cycles:

1.Strategy: We believe every successful company begins with a clear strategic vision aligned with market realities. Our data-driven approach ensures the startups we partner with address genuine market needs rather than pursuing solutions seeking problems.

2. Sourcing: We've built a global network and AI-powered sourcing capabilities that enable us to discover breakthrough technologies and visionary entrepreneurs before they become obvious opportunities. We're not followers, we are discoverers.

3. Scaling: Growth without foundation leads to failure. We provide operational expertise that helps companies build sustainable scaling mechanisms, from technology infrastructure to team development and market expansion strategies.

4. Synergy: We facilitate strategic partnerships that amplify growth potential and create competitive advantages. The most successful companies of the future will be those that create meaningful connections within their ecosystems.

5. Sustainability: Our investment thesis prioritizes companies building solutions for tomorrow's challenges. We consider long-term viability across financial, environmental, and social dimensions.

6. Success: We measure success not just in financial returns, but in creating lasting value for all stakeholders, entrepreneurs, corporations, and society at large.

How We're Leveraging Technology Convergence

We're particularly excited about the convergence of artificial intelligence, IoT, and robotics. These technologies aren't just changing how companies operate, they're fundamentally transforming how they're built.

Our portfolio companies are reimagining traditional industries through technological integration. We're backing robotics companies creating new paradigms for industrial automation and AI-powered startups revolutionizing risk assessment in insurance. What excites us most is witnessing the emergence of hybrid business models that combine digital innovation with deep industry expertise, creating defensible moats that traditional tech companies can't replicate.
This convergence represents more than technological advancement; it's the foundation of sustainable competitive advantage in the next decade.

Our Take on Market Corrections and Opportunities

The valuation corrections from 2021 highs have created what we see as unprecedented opportunities. While others view down rounds and unicorn devaluations as challenges, we see them as market efficiency improvements that favor strategic investors like us.

We're witnessing trends like co-investments, extensions, and significant valuation cuts, all of which play to our strengths as strategic partners who provide more than capital. When financial investors retreat, strategic value becomes even more important.

This market correction has also revealed something crucial: companies built on solid fundamentals with strong strategic partnerships weather economic storms better than those relying solely on financial backing. Our portfolio companies have demonstrated remarkable resilience during this period, with several achieving profitability ahead of schedule while their purely VC-backed competitors struggled with runway management.

What We Predict for the Next Decade

Based on our market position and portfolio insights, we see several key trends defining the next decade of company building:

• Ecosystem Integration: We believe successful companies will be those that seamlessly integrate into broader innovation ecosystems, creating value through partnerships rather than competition. This aligns perfectly with our VCaaS model. Companies that try to build everything in-house will find themselves outmaneuvered by those that strategically leverage ecosystem partnerships.

• Regulatory Proactivity: Companies that anticipate and shape regulatory frameworks rather than merely comply with them will gain significant competitive advantages. Our deep industry expertise positions us to help companies navigate this complexity. We've seen companies gain 18-month market advantages simply by understanding regulatory trends before their competitors.

• Stakeholder Capitalism: We're investing in companies that create value for all stakeholders, customers, employees, investors, and society, rather than optimizing for single metrics. This isn't just about ESG compliance; it's about building sustainable business models that can weather long-term market cycles.

• Global-Local Balance: Future companies will need to operate globally while maintaining deep local expertise and cultural sensitivity. Our network enables this balance, helping companies expand internationally while maintaining local market authenticity.

• AI-Human Collaboration: The future belongs to companies that enhance human capabilities rather than replace them. We're particularly excited about companies that use AI to augment human decision-making rather than automate it away entirely.

Our Competitive Advantage

What sets us apart is our unique position at the intersection of corporate strategy and entrepreneurial execution. We combine the best of corporate strategic thinking with entrepreneurial agility, creating sustainable competitive advantages for all stakeholders.

Our VCaaS model enables corporations to maintain focus on core operations while building breakthrough innovation capabilities. We're not just facilitating transactions, we're architecting the future of corporate innovation.

Why This Matters Now

The companies that will define the next decade are being built today. We're not just predicting this transformation, we're actively creating it through strategic partnerships with forward-thinking corporations and breakthrough technology companies.

Our approach transcends traditional venture capital limitations by creating a new category of value creation. We're building bridges between corporate resources and entrepreneurial innovation, enabling both to achieve outcomes neither could reach alone.

Our Commitment Moving Forward

At Mandalore Partners, we're committed to leading this transformation in company building. We're creating exceptional value for entrepreneurs, corporations, and society at large by reimagining how strategic capital, operational expertise, and market access can be combined.

The future of company building belongs to those who can successfully navigate the intersection of technology, strategy, and execution. We're not just participants in this evolution, we're architects of it.

Final Thoughts 

The venture capital industry is at a turning point, and Mandalore Partners is leading the way with a bold alternative to outdated, transactional investing. Through our Venture Capital as a Service (VCaaS) model, we combine the strategic resources of established corporations with the agility of innovative startups to create lasting value beyond traditional VC limitations. As markets demand quality, strategic depth, and sustainable growth, we’re building companies that leverage technology, industry expertise, and regulatory foresight to drive real impact. At Mandalore, we’re not just funding businesses, we’re designing the infrastructure for tomorrow’s economy. Join us to shape this transformation, not just react to it.

Investing in Artificial Intelligence: Key Trends for Funds

Methodology: A Fund-Focused View on AI Investment Dynamics

This article draws from market reports, fund manager insights, and AI ecosystem analyses to outline the main trends shaping how venture, growth, and corporate funds are investing in artificial intelligence today. We look at deal activity, sector focus, and strategic themes guiding capital allocation.

In Brief: What Funds Need to Know

• AI deal volume remains strong, with funds focusing on core infrastructure, applied AI, and ethical frameworks.

• Large funds and corporate VCs are increasingly backing AI tools that reshape entire industries.

• Geopolitics, regulation, and responsible AI principles are playing a bigger role in diligence.

• The next wave of winners may emerge from vertical AI not general-purpose models.

AI Investment Is Maturing But the Opportunity Remains Huge

Over the past decade, funds have steadily increased their exposure to artificial intelligence. From early bets on core machine learning platforms to today’s more refined focus on vertical applications (healthcare AI, legal tech AI, climate AI), the landscape has evolved.

AI deal activity remains resilient even in cautious markets, as funds seek companies offering real, scalable applications rather than AI hype.

According to PitchBook, AI and machine learning startups captured over $50 billion in venture funding globally in 2024, with enterprise AI infrastructure and applied AI solutions leading the way.

Key Trend 1: From General AI to Vertical AI

• Fund managers are shifting attention from general-purpose AI tools to sector-specific solutions. Why?

• Vertical AI startups typically show faster paths to product-market fit.

• Customers value AI embedded in their existing workflows (e.g., legal document review, clinical trial analysis).

• Regulatory clarity is stronger in narrow-use cases.

Funds investing in AI are looking for companies that deeply understand their end markets, not just ones building horizontal tools.

Key Trend 2: Responsible AI Moves Front and Center

Ethical AI isn’t just a discussion point anymore, it's a diligence priority.

LPs increasingly expect funds to assess AI safety, bias mitigation, and explainability during investment screening. Startups offering transparency features (e.g., model audits, bias dashboards) are gaining an edge in fundraising.

Funds that position themselves as champions of responsible AI will not only de-risk portfolios but also build brand credibility with partners and regulators.

Key Trend 3: Corporate Venture Capital Is Leading in AI Scaling

Corporate funds are playing a growing role in AI funding rounds especially at the growth stage. Why?

• AI solutions often require integration with large enterprise systems.

• Corporate VCs provide go-to-market pathways AI startups need to scale.

• Strategic investors are focused on AI that directly augments their core business lines.

We see funds co-investing alongside corporates in areas like AI-driven cybersecurity, supply chain optimization, and predictive analytics.

Final Thought: What’s Next for AI-Focused Funds?

The AI gold rush is shifting from model-building to real-world deployment. Funds that succeed will:

• Back founders solving specific industry problems.

• Prioritize responsible, explainable AI.

• Align with partners who can accelerate adoption at scale.

For investors, artificial intelligence isn’t just a theme, it's becoming an essential part of any modern portfolio.

Is AI Transforming Venture Capital?

Methodology: Mapping AI’s Impact Across the VC Value Chain

This analysis draws from recent VC investment trends, AI tooling adoption across fund operations, startup market behavior, and published reports from leading firms in venture and enterprise AI. We focus on identifying how artificial intelligence influences sourcing, due diligence, portfolio support, and decision-making within venture capital firms, and whether it’s enhancing efficiency or replacing core human functions.

In Brief: What’s Changing?

• AI tools are being widely adopted for deal sourcing, screening, and due diligence.

• LPs are showing increased interest in VC funds with a defined AI advantage.

• New firms are emerging with AI-built investment platforms, offering algorithmically driven portfolios.

• Portfolio support is becoming more data-informed, from hiring intelligence to pricing optimization.

• The human element of venture capital: relationships, trust, judgment, remains irreplaceable, but it’s being redefined

Rethinking Venture Capital: Why Evolution Isn’t Optional

While venture capital has long been considered a relationship-driven business, it’s also a sector rich in data, startup metrics, founder backgrounds, market dynamics, and exit multiples. As these datasets grow, VCs are increasingly turning to AI-powered platforms to extract insight, surface opportunities, and reduce operational burden.

Tools like Affinity, PitchBook’s AI modules, and custom GPT-based systems are now used to automate initial sourcing and provide predictive scoring on potential investments. Some firms, like SignalFire and Zetta, have fully integrated AI into their scouting stack.

“What used to take weeks of founder outreach and CRM updates can now be done in hours,” says one GP at a data-native early-stage fund.

AI-Driven Deal Flow: Filtering Noise with Signal

One of AI’s most impactful applications has been in the triage of inbound deal flow. Firms now deploy models that rank incoming decks and emails based on historic performance patterns, investment thesis fit, and keyword matching.

Some early-stage firms are even experimenting with LLM-powered memo generation, allowing analysts to summarize founder calls and create investment memos in minutes rather than days.

However, this is not about removing human insight; it's about freeing teams to focus on founder evaluation, industry diligence, and partnership building.

Due Diligence Gets Smarter and Faster

Diligence used to be slow, expensive, and heavily manual. With AI, venture teams now automate:

• Market sizing analysis

• Competitor landscape mapping

• Sentiment tracking across social/web

• Technical benchmarking using code or API audits

Firms like a16z and FirstMark have invested in internal tools that run structured diligence pipelines, combining data scraping with analyst review. AI makes the process leaner without compromising depth.

Still, human interpretation, especially for early-stage, pre-revenue bets, remains essential.

AI at the Portfolio Level: Coaching and Insight at Scale

Beyond the investment decision, AI is reshaping how firms support their startups. From hiring intelligence (e.g,. identifying likely candidate attrition) to churn risk detection and customer segmentation, venture teams are leveraging platforms to give founders smarter feedback, faster.

Portfolio dashboards with embedded AI modules offer near real-time insights, transforming GPs into strategic advisors supported by robust tooling.
Some emerging fund models even offer “productized venture support”, giving founders access to plug-and-play AI toolkits as a default benefit of the partnership.

What AI Won’t Replace

For all its analytical power, AI has limitations. Venture remains a trust business. Relationship building, founder empathy, and strategic thinking still matter deeply, particularly at the earliest stages, where conviction often precedes data.

The winning firms in this new landscape won’t be the ones that replace people with bots, but those that use AI to scale what humans do best: pattern recognition, intuition, and judgment.

Final Thought: AI Is Reshaping Venture Quietly and Permanently

AI is not replacing venture capital but it is changing the pace, process, and precision with which it’s practiced. Firms embracing this shift are seeing faster cycles, smarter insights, and a competitive edge in both sourcing and portfolio management. Those resisting risk falling behind not because they can’t find deals, but because they’re spending time where AI can already add value. The future of VC isn’t fully automated. It’s augmented and the transformation is already well underway.

From Payment Rails to Embedded Finance: What VCs Are Betting on in Fintech

The fintech revolution has evolved far beyond simple payment apps and digital wallets. As we advance through 2025, venture capitalists are recalibrating their strategies, moving away from traditional fintech plays toward sophisticated infrastructure and embedded financial services that promise to reshape how businesses and consumers interact with money.

The Great Fintech Reset: Where the Smart Money Is Going

The numbers tell a compelling story of transformation. While overall VC investment in fintech remains near six-year lows, strategic investors are doubling down on specific segments that demonstrate exceptional growth potential. The embedded finance market, valued at $104.8 billion in 2024, is projected to explode to $690.39 billion by 2030, a staggering 36.4% compound annual growth rate that has captured the attention of sophisticated investors worldwide.

This isn't just another tech trend. It represents a fundamental shift in how financial services are delivered, consumed, and integrated into daily life. Smart VCs recognize that the future belongs to companies that can seamlessly weave financial functionality into existing platforms rather than building standalone financial products

Payment Rails: The Infrastructure Play That's Paying Off

The backbone of modern finance is undergoing a radical transformation, and investors are taking notice. FedNow, the Federal Reserve's instant payment system, is processing $190 million in payments daily, while Real-Time Payments (RTP) networks reported a remarkable 94% increase in transaction volume throughout 2024. This explosive growth has tripled participation in instant payment rails over the past year, with over 1,200 financial institutions now connected to these systems.

For VCs, this represents more than just impressive statistics, it signals a massive opportunity in payment infrastructure. Companies building the pipes that enable instant, seamless transactions are attracting significant investment because they're positioned to capture value from every transaction flowing through their systems. The shift from traditional payment processing to instant settlement creates entirely new revenue streams and business models that savvy investors are eager to fund.

Embedded Finance: The Trillion-Dollar Opportunity

The embedded finance sector is where VCs are placing their biggest bets, and the data supports their enthusiasm. Multiple market research firms project the sector will reach between $570.9 billion and $1.73 trillion by 2033, depending on adoption rates and regulatory environments. These aren't just optimistic projections, they're backed by real market momentum.

Consider the rapid expansion beyond traditional sectors. Healthcare, construction, and hospitality, industries previously slow to adopt financial technology, are now integrating tailored financial services directly into their platforms. This expansion is driving what investors call the "invisible finance" trend, where financial services become so seamlessly integrated that users barely notice they're engaging with sophisticated financial products.

The retail sector alone demonstrates the power of this shift. Fintech companies have grown from handling 22% of personal loan originations in 2019 to approximately 39% in 2024. This isn't just market share displacement, it's evidence of a fundamental change in how consumers prefer to access financial services: embedded within the platforms and services they already use.

The AI Wild Card: Intelligent Financial Services

Artificial intelligence has emerged as a bright spot in an otherwise cautious investment environment. VCs are particularly excited about AI applications that enhance embedded finance platforms, enabling real-time credit decisions, personalized financial products, and predictive analytics that can anticipate user needs before they're explicitly expressed.

The convergence of AI and embedded finance is creating opportunities for companies to offer hyper-personalized financial services at scale. For investors, this represents the holy grail of fintech: technology that can increase conversion rates, reduce risk, and create sticky customer relationships simultaneously.

Geographic Hotspots: Where the Action Is

The global nature of fintech investment is creating interesting regional dynamics. China's embedded finance market is expected to grow at a remarkable 32.8% CAGR through 2030, driven by tech giants like Alibaba and Tencent integrating financial services into their ecosystems. Meanwhile, India is witnessing significant growth with a 19.5% CAGR, fueled by a massive underbanked population and supportive regulatory environment.

These geographic variations are creating opportunities for VCs to invest in region-specific solutions that can later be adapted for global markets. The most successful fintech companies are those that can navigate diverse regulatory environments while maintaining their core value propositions.

The Regulatory Reality Check

Smart investors are also paying close attention to the regulatory landscape. Increased regulation, predicted as one of the top fintech trends for 2025, isn't necessarily a headwind, it's an opportunity for well-positioned companies to create competitive moats. Firms that can navigate complex compliance requirements while maintaining user experience advantages are attracting premium valuations.

The regulatory environment is actually accelerating the embedded finance trend, as companies seek to partner with established financial institutions rather than navigate licensing requirements independently. This creates opportunities for B2B fintech companies that can serve as bridges between traditional financial institutions and technology platforms.

The Investment Thesis: Infrastructure Over Apps

The most successful fintech VCs are shifting their focus from consumer-facing applications to the infrastructure that powers them. The companies receiving the largest funding rounds are those building the rails, APIs, and platforms that enable other businesses to offer financial services seamlessly.

This infrastructure-first approach reflects a mature understanding of the fintech ecosystem. While consumer apps can achieve viral growth, infrastructure companies build sustainable, defensible businesses with predictable revenue streams and strong network effects.

Looking Forward: The Next Wave

As we move deeper into 2025, the fintech landscape is being reshaped by three key forces: the maturation of instant payment rails, the explosive growth of embedded finance, and the intelligent application of AI to financial services. VCs who understand these dynamics and invest accordingly are positioning themselves to capture outsized returns in what promises to be the most transformative period in financial services history.

The message is clear: the future of fintech isn't about building better banking apps, it's about making finance invisible, instant, and intelligent. The companies and investors who embrace this reality will define the next decade of financial innovation.

Final Thoughts

The fintech evolution we're witnessing today represents more than just technological advancement, it's a fundamental reimagining of how financial services integrate into human and business experiences. For venture capitalists, this moment presents both unprecedented opportunity and significant risk. 

The data overwhelmingly supports one conclusion: the age of standalone fintech products is ending, and the era of invisible, embedded financial services has begun. The question isn't whether this transformation will happen, it's whether investors will have the vision to back the companies that make it reality.

Où vont les investissements VC en 2025 ?

L’année 2025 marque un tournant pour le capital-risque. Après une période de correction marquée par la prudence post-2021, les investisseurs reviennent sur le marché avec une vision plus sélective, plus stratégique, mais toujours ambitieuse. Certaines tendances se confirment, d’autres émergent, dessinant une nouvelle cartographie des secteurs les plus prometteurs.

Alors, où va l’argent du capital-risque cette année ? Voici un panorama des secteurs qui attirent le plus l’attention (et les fonds) des VC en 2025.

Le climat et la transition énergétique restent en tête des priorités

Le climate tech continue de séduire les investisseurs, porté par l’urgence climatique, les politiques européennes ambitieuses, et l’engagement des nouvelles générations.
En 2025, les fonds se tournent vers des solutions plus matures : stockage d’énergie, électrification industrielle, infrastructures vertes, et technologies de capture du carbone.

Les startups capables de combiner impact environnemental mesurable et viabilité économique deviennent les stars des portefeuilles VC. Les fonds créent même des équipes spécialisées pour capter les meilleurs dossiers du secteur.

L’intelligence artificielle passe du battage médiatique à l’adoption concrète

L’IA reste incontournable, mais l’approche évolue. Après l’explosion des modèles de langage et des outils génératifs en 2023–2024, les investisseurs misent désormais sur les applications sectorielles de l’IA : santé, logistique, cybersécurité, finance, éducation.

Les startups qui se contentent de “surfer sur l’IA” sans preuve d’utilité sont écartées. En revanche, celles qui intègrent l’IA pour résoudre des problèmes précis avec efficacité reçoivent un accueil très favorable.

La santé digitale et la biotechnologie reviennent au cœur des portefeuilles

Le secteur de la santé retrouve un second souffle en 2025. Les investisseurs ciblent des startups en healthtech, biotech et medtech, surtout celles qui allient innovation technologique et compréhension fine des besoins des patients.

On observe un fort intérêt pour les solutions liées à la santé mentale, la longévité, la médecine préventive, et la personnalisation des traitements via la donnée. La convergence entre technologie et biologie attire des tickets plus importants qu’auparavant.

La fintech se transforme, mais reste attractive

La fintech traverse une phase de consolidation, mais les projets solides continuent de lever. En 2025, les VC préfèrent des modèles plus résilients : infrastructure financière, outils B2B, sécurité des paiements, gestion d’actifs numériques.

Les néobanques et les solutions de paiement grand public ont moins la cote, sauf si elles affichent une rentabilité réelle et une différenciation claire. L’heure est à la maturité dans ce secteur autrefois surchauffé.

L’éducation et la formation professionnelle attirent un intérêt renouvelé

Le monde post-pandémie a changé la perception de l’éducation. En 2025, les investissements VC se dirigent vers des plateformes d’apprentissage continu, formation technique, et outils de requalification.

L’essor de l’IA et de l’automatisation crée une pression sur les compétences : les startups capables de proposer des formats flexibles, accessibles et certifiants rencontrent une forte demande — aussi bien du côté des particuliers que des entreprises.

L’agritech et la foodtech s’imposent comme des verticales stratégiques

La sécurité alimentaire et la durabilité deviennent des enjeux géopolitiques majeurs. En réponse, les VC s’intéressent aux innovations en agriculture régénérative, production locale, biotechnologie alimentaire, et logistique intelligente.

Des startups développant des alternatives aux pesticides, des capteurs intelligents pour les sols, ou des solutions d’agriculture verticale lèvent des fonds dans toute l’Europe. Ces technologies sont vues comme des leviers essentiels pour un futur résilient.

Moins de hype, plus de preuves

Ce qui caractérise les investissements VC en 2025, c’est une exigence renforcée de traction, de viabilité et d’impact concret. Les investisseurs recherchent des preuves : chiffre d’affaires, rétention, adoption, partenariats, réglementation maîtrisée.

L’époque des levées à neuf zéros sans produit fini est révolue. Désormais, l’équilibre entre vision ambitieuse et rigueur opérationnelle est la clé.

Conclusion : une année d’innovation responsable

En 2025, le capital-risque ne ralentit pas, il se réinvente. Les investissements se concentrent sur des secteurs à fort impact, où l’innovation technologique rencontre des besoins réels, sociétaux, et environnementaux. Cette évolution marque une nouvelle maturité de l’écosystème européen.

Pour les fondateurs, cela signifie qu’il faut allier audace, exécution, et alignement avec les grandes transitions du monde. Pour les investisseurs, 2025 est l’année où le capital-risque devient plus stratégique que jamais.

The Most VC-Funded Sectors in Europe

The Most VC-Funded Sectors in Europe

Europe’s startup ecosystem has grown rapidly over the past decade, attracting billions in venture capital (VC) from both local and global investors. While overall funding levels fluctuate with macroeconomic conditions, certain sectors consistently draw strong VC attention. From climate tech and deep tech to fintech, health innovations, and enterprise software, the continent’s innovation landscape is increasingly diverse and resilient.

Climate Tech Leads the Pack

Climate tech and energy transition startups are now Europe’s single largest VC-funded sector, accounting for approximately 27–30% of total venture capital investment in 2023 (Dealroom/Sifted). This surge reflects the EU’s ambitious carbon neutrality targets, supportive policy frameworks, and the growing appetite among investors for climate-positive solutions.

Startups tackling renewable energy, sustainable mobility, carbon capture, and circular economy solutions are driving the trend. Countries like the Netherlands, Germany, and the Nordics are at the forefront, combining strong cleantech ecosystems with dedicated climate funds.

AI & Deep Tech Keep Rising

AI and deep tech (which includes frontier technologies like advanced hardware, quantum computing, and automation) accounted for about 17% of Europe’s VC funding in 2023. The rise of generative AI and automation tools is accelerating investor interest, with large rounds for companies like Mistral AI, DeepL, and Aleph Alpha showing the strength of the ecosystem.

Key hubs for AI and deep tech include Berlin, Paris, and London, all benefiting from talent density and supportive research institutions.

Fintech Remains a Pillar

Fintech remains a major draw, attracting roughly 15–19% of total VC investment, down slightly from its peak but still firmly in the top three sectors. From digital banks to blockchain platforms and payments solutions, European fintech leaders like Revolut (UK), N26 (Germany), and Lydia (France) continue to scale, supported by consumers’ shift away from traditional banking.

London remains Europe’s fintech capital, thanks to its mature regulatory environment and deep investor pools.

Healthtech & Enterprise Software Stay Solid

While harder to split precisely, healthtech and enterprise software together continue to be pillars of European VC activity. Over the last 20 years, they have consistently accounted for a combined ~40% of total VC funding (Dealroom). Healthtech startups in telemedicine, AI diagnostics, and mental health are still seeing healthy long-term growth, while B2B SaaS and cloud solutions remain attractive bets for their scalability and recurring revenues.

Companies like Doctolib (France), Kry (Sweden), and Celonis (Germany) show how Europe’s healthtech and enterprise software scenes remain globally competitive.

Emerging Sectors to Watch

Beyond these leading sectors, several emerging areas are gaining momentum:

• AgriTech: With food security and regenerative farming in focus, AgriTech is steadily attracting more funding.

• Cybersecurity: Increasing digital threats are driving larger rounds for European security startups.

• Edtech: While post-pandemic growth slowed, niches like corporate training and AI-driven learning are evolving.

• Space Tech: Once US-dominated, Europe’s space tech sector is quietly expanding, supported by national programs and private capital.

How Does Europe Compare Globally?

According to Dealroom’s 2023 and early 2024 data, Europe’s top-funded sectors now mirror global trends in the US and East Asia. In the US, the top sectors by VC investment are:

1. Health & Biotech

2. Enterprise Software / AI

3. Fintech

East Asia follows a similar pattern, with deep tech, fintech, and industrial tech attracting the biggest rounds. Notably, Europe’s climate tech stands out: its share of total VC funding is higher than in North America or Asia, thanks to EU policy incentives and investor demand for sustainable growth.

Final Thoughts

The European VC landscape is dynamic, but certain sectors continue to stand out for their scale, impact, and resilience. Climate tech, deep tech, fintech, healthtech, and enterprise software together account for the lion’s share of VC investment, while emerging verticals like AgriTech and space tech hint at the next wave of innovation.

For founders, understanding which sectors attract capital and why can shape how you position your startup. For investors, the current trends reflect where both opportunity and responsibility intersect in the next era of European innovation.

What Are the Characteristics of a Unicorn Founder?

Unicorn founders possess distinct traits and strategies that set them apart in the entrepreneurial landscape. Contrary to the belief that technological innovation is the primary driver of success, evidence shows that effective strategy, leadership, and timing are crucial for building billion-dollar companies. Here are the key characteristics of successful unicorn founders:

1. Strategic Vision

Unicorn founders excel at identifying and capitalizing on emerging trends. They have a keen ability to spot opportunities in the market and navigate their ventures with a strategic mindset. This skill allows them to lead their companies effectively, even in competitive environments.

Example:

• Steve Jobs improved existing technology rather than creating it from scratch, demonstrating that strategic enhancement can lead to substantial success.

2. Focus on Execution Over Innovation

While innovation is important, it is not the sole factor for success. Many billion-dollar entrepreneurs succeed by imitating and refining existing ideas rather than relying on breakthrough technology. They understand that execution and strategy often outweigh raw innovation.

Notable Founders:

• Bill Gates purchased software and enhanced it.

• Jeff Bezos imitated online booksellers and revolutionized e-commerce infrastructure.

3. Independence from Venture Capital

A significant percentage of billion-dollar entrepreneurs—94%—build their businesses without heavy reliance on venture capital (VC). They prioritize maintaining control over their companies, often delaying or avoiding VC funding until they are in a position of strength.

Key Cases:

• Mark Zuckerberg delayed VC involvement to retain control of Facebook.

• Jan Koum bootstrapped WhatsApp before its acquisition for $19 billion.

4. Leadership Skills

Unicorn founders possess strong leadership capabilities that enable them to guide their companies through various stages of growth. They are adept at rallying teams, making pivotal decisions, and executing their vision effectively.

Leadership Insights:

• Founders who remain in control often retain 2x to 7x more wealth compared to those who hand over leadership to professional CEOs after receiving VC funding.

5. Ability to Adapt and Scale

Successful unicorn founders can adapt their strategies to changing market conditions and scale their businesses efficiently. They leverage their understanding of the industry to navigate challenges and capitalize on new opportunities.

Examples of Adaptation:

• Brian Chesky (Airbnb) took the concept of online rentals and significantly improved it, helping landlords maximize their rental potential.

6. Emphasis on Wealth Creation and Impact

Unicorn founders focus not just on building successful companies but also on creating lasting impact and wealth for themselves and their stakeholders. They understand that true success encompasses both financial rewards and positive societal contributions.

Conclusion

The characteristics of unicorn founders challenge the conventional narrative that technology alone drives success. Instead, it is the combination of strategic vision, execution, independence from VC, leadership skills, adaptability, and a focus on impact that defines these exceptional entrepreneurs. As we rethink entrepreneurship education, it is essential to emphasize these traits to cultivate the next generation of successful founders.

Cap Table Management and Adverse Talent Selection: Navigating the Startup Growth Minefield

What Is a Cap Table and Why It Matters

A cap table tracks ownership stakes, including founders, employees, investors, and option holders. It determines who owns what—and by extension, who has power and incentives. A clean, transparent cap table is essential for:

• Attracting investors

• Retaining top talent

• Making strategic decisions

The Link Between Cap Tables and Talent

Early hires are often granted equity in lieu of high salaries. But if the cap table becomes bloated or unbalanced, top talent may be disincentivized. For example:

• Too little equity left in the option pool = weak incentive for new hires

• Over-diluted founder stakes = loss of strategic vision

• Complex or unclear ownership = legal or trust issues

This can result in adverse talent selection—where top candidates decline offers due to poor equity packages or unclear growth prospects, leaving the company with suboptimal hires.

Avoiding Adverse Selection

• Plan the Option Pool Early: Allocate enough equity for future hires. Revisit regularly.

• Balance Stakeholder Interests: Align investor returns with talent retention.

• Be Transparent: Clearly communicate equity value, vesting schedules, and growth potential.

• Seek Legal Expertise: Poorly structured cap tables can have long-term legal and tax consequences.

Long-Term Cap Table Strategy

Managing a cap table isn’t just about this round—it’s about the next 5 to 10 years. Founders should:

• Model dilution scenarios in advance

• Keep clean records and use tools like Carta or Pulley

• Align equity strategy with business milestones

Conclusion

Cap table management is one of the most underappreciated disciplines in startup building. Done well, it becomes a growth enabler. Done poorly, it becomes a silent killer. When combined with smart hiring strategies and transparent communication, it lays the foundation for sustainable growth and a high-performing team.

Studio Structures: Building for Scalability and Resilience

The traditional startup model often puts founders on a lonely, risky path. But there’s a new approach gaining traction: venture studios. These startup studios—or company builders—are redefining how companies are launched and scaled.

What Is a Venture Studio?

A venture studio is an organization that creates startups from scratch. Unlike accelerators or incubators that support existing startups, studios identify market opportunities, assemble teams, and develop products internally. Once a venture is validated, it is spun out with funding and a dedicated team.

This structure centralizes support functions—such as marketing, finance, HR, and legal—enabling new startups to hit the ground running. It’s a system designed for scalability, speed, and resilience.

Key Benefits of the Studio Model

• Operational Efficiency: Shared services reduce overhead and allow startups to focus on product-market fit.

• De-risked Innovation: Ideas are tested systematically, reducing the chance of premature failure.

• Talent Pool: Studios attract top-tier talent who can rotate between projects or take leadership roles.

• Faster Time-to-Market: With processes and resources already in place, new ventures can launch quickly.

Building for Scalability

Studios are designed to build not just one successful company—but multiple. This requires:

• Repeatable Processes: Standardized systems for validating, launching, and scaling ventures.

• Cross-functional Teams: Experts in design, engineering, growth, and operations working in sync.

• Robust Infrastructure: Tools and frameworks that allow each startup to scale independently.

• Ensuring Resilience

• Resilience is about adaptability, especially in uncertain markets. Studio structures offer:

• Pivot Flexibility: Centralized oversight allows quick changes in direction when needed.

• Capital Efficiency: Shared resources help conserve cash.

• Learning Loops: Failures from one venture become lessons for the next.

A New Era of Entrepreneurship

Studios are not for everyone—but for mission-driven founders who want to build fast and learn faster, they offer a compelling model. With the right leadership and vision, venture studios can become innovation engines, capable of launching multiple high-growth businesses with reduced risk and increased resilience.

Private Equity in Company Building: Fueling Long-Term Growth

Private equity (PE) is often associated with large-scale buyouts, corporate restructuring, and financial engineering. However, in recent years, PE has increasingly positioned itself as a powerful partner in company building. Rather than simply optimizing existing businesses, many private equity firms are now focused on creating long-term value through hands-on operational support, strategic planning, and growth acceleration.

Understanding Private Equity’s Evolving Role

Historically, private equity was primarily viewed as a financial tool—buy a company, optimize it, and sell it at a profit. While this remains part of the playbook, the role of PE is evolving. Today’s investors are increasingly hands-on, bringing in talent, tools, and methodologies that help startups and growth-stage companies scale sustainably.

These investors are not just financiers; they act as co-builders. They offer deep expertise in areas such as market expansion, talent acquisition, technology integration, and operational efficiency. This model of active ownership is becoming a core element of modern private equity.

Why Private Equity Matters in Company Building

PE firms bring a unique set of advantages to the table:

• Capital Injection: Provides the necessary funding for product development, talent acquisition, or market expansion.

• Strategic Guidance: Helps refine go-to-market strategies and unlock new revenue streams.

• Operational Support: Offers access to a network of experts who can support execution across sales, finance, HR, and more.

• Governance and Accountability: Introduces performance metrics and milestones to ensure progress is measurable and continuous.

This combination of capital and capability makes private equity a strategic ally for founders and executives looking to scale their ventures.

Case Study: From Startup to Market Leader

Consider a SaaS startup with a strong product-market fit but limited resources to scale. A private equity firm steps in, not only providing capital but also bringing in a new COO, revamping the sales strategy, and introducing OKRs (Objectives and Key Results). Within two years, the company expands into three new markets, doubles its revenue, and becomes a category leader.

This illustrates how PE firms can shift from being reactive investors to proactive builders.

Challenges and Considerations

Despite the benefits, founders should be cautious:

• Loss of Control: PE involvement often comes with board seats and voting rights.

• Short-Term Pressure: Some firms may push for rapid returns over sustainable growth.

• Cultural Fit: Not all PE firms align with startup culture and vision.

Choosing the right partner is crucial. Founders should look for investors who understand their vision and are committed to long-term value creation.

Final Thoughts

Private equity in company building represents a strategic evolution in the investment landscape. With the right partnership, it can offer far more than funding—it can be a catalyst for growth, innovation, and long-term success.

Company Building in the Next Innovation Cycle: Embracing the Future

If the last innovation cycle gave rise to unicorns powered by cloud software, mobile-first products, and direct-to-consumer brands, the next one will look and feel different. Today, builders are working against a backdrop of AI breakthroughs, climate urgency, shifting labor models, and economic pressure to scale responsibly, not recklessly.

So, what does successful company building look like in this next phase? It’s more intentional, more human, and far more collaborative than before. Here’s what founders, operators, and ecosystem leaders need to know.

Think Beyond Technology, Start with Systems

While AI and automation dominate headlines, the real winners in this cycle will think in systems, not just features. They’ll build for resilience, design for circularity, and operate with inputs from diverse communities.

That means moving beyond point solutions. The next wave of builders will ask: How does this company improve the system it exists within? Whether that’s a supply chain, a talent pool, or an entire sector.

Companies like Figma and Notion didn’t just offer productivity tools—they created new standards for how people collaborate. That’s the level of systemic thinking that endures.

Embracing Technological Convergence

The rapid advancement of technologies such as artificial intelligence (AI), machine learning, and quantum computing is redefining the boundaries of what's possible. Companies are now leveraging these tools not just for efficiency but to create entirely new value propositions. 

For instance, AI agents are evolving from simple assistants to autonomous entities capable of complex decision-making, impacting industries from healthcare to finance. This technological convergence demands that companies remain agile, integrating emerging tools into their operations and staying ahead of the curve.

Prioritizing Sustainable Innovation

Sustainability is no longer a buzzword but a business imperative. Consumers and stakeholders alike are holding companies accountable for their environmental and social impact. 

In response, forward-thinking organizations are embedding sustainability into their core strategies, from supply chain management to product design. This shift not only addresses global challenges but also opens up new markets and opportunities for growth.

Fostering a Culture of Continuous Learning

In the face of rapid change, a company's ability to learn and adapt becomes its greatest asset. Building a culture that encourages experimentation, values feedback, and embraces failure as a learning opportunity is crucial. Such environments empower employees to innovate and drive the company forward.

Organizations that invest in upskilling their workforce and promoting cross-functional collaboration are better positioned to navigate the complexities of the modern business landscape.

Leveraging Data-Driven Decision Making

Data has become the lifeblood of modern enterprises. Harnessing data analytics enables companies to make informed decisions, personalize customer experiences, and identify emerging trends. However, with great power comes great responsibility. Ensuring data privacy and ethical use is paramount.

Companies that strike the right balance between data utilization and ethical considerations will build trust and gain a competitive edge.

Building Resilient and Adaptive Structures

The unpredictability of today's world, from global pandemics to geopolitical tensions, underscores the need for resilience. Companies must design structures that can withstand shocks and adapt to new realities. This involves diversifying supply chains, investing in digital infrastructure, and developing contingency plans.

Resilient organizations not only survive disruptions but often emerge stronger, having turned challenges into opportunities.

Embracing Collaborative Ecosystems

No company operates in isolation. The next innovation cycle emphasizes the importance of collaborative ecosystems, where businesses, startups, academia, and governments work together to drive progress. Such collaborations foster knowledge sharing, accelerate innovation, and create synergies that benefit all parties involved.

Engaging in these ecosystems allows companies to tap into diverse perspectives and resources, fueling their growth and adaptability.

Conclusion

The next innovation cycle presents both challenges and opportunities. Companies that proactively adapt, embrace technological advancements, and prioritize sustainability and learning will not only navigate the complexities of this new era but thrive within it. By fostering resilience, leveraging data responsibly, and engaging in collaborative ecosystems, businesses can build a future-ready foundation poised for sustained success. 

This Is a Cycle for the Builders Who Care! The next innovation cycle isn’t just about what you can make, it's about why you’re making it, how you build it, and who benefits from it.

If you’re building something right now, you’re doing it in one of the most exciting (and challenging) environments in decades. There’s more noise, more tools, more complexity. But there’s also more need, more urgency, and more opportunity to lead with purpose.

Liquidity Along the Path to Exits: Smart Moves for Founders and Investors

Understanding Liquidity Before the Exit

For years, liquidity in startups meant one thing: wait for the big exit. Whether through an IPO or an acquisition, that was the long game for everyone involved: founders, employees, and investors alike. But today’s startup landscape is different. Companies are staying private longer. Funding cycles have expanded. And liquidity, once a distant milestone, is becoming a necessary tool along the way. In this post, we will explore how liquidity works before the exit, the options available to founders and early stakeholders, and what you need to consider if you're building or investing in a company with a long road to a traditional exit.

Why Liquidity Matters More Than Ever

Startups are maturing differently now. Ten years ago, companies like Facebook went public in under a decade. Today, many high-growth businesses operate privately for 10, even 15 years. That long timeline can make it difficult for early employees and investors to access any return on their equity, often their most valuable asset. 

Pre-exit liquidity. It's become a lifeline for founders and team members looking to fund new ventures, pay taxes on stock options, or simply achieve personal financial goals. For investors, it’s a way to de-risk a long-term position without abandoning support for the company.

The Rise of Secondary Transactions

One of the most common ways to unlock liquidity is through secondary sales, when existing shareholders sell their shares to new investors.

Secondary sales don’t generate capital for the company, but they do serve a vital purpose: allowing founders, employees, and early backers to realize value without forcing a company into an early exit.

Platforms like CartaX, Forge, and EquityZen have made this easier by streamlining transactions and verifying pricing. Secondary markets are now playing a bigger role in the startup economy, especially in later-stage companies where demand from outside investors remains high.

Equity-Backed Loans: Borrowing Without Selling

Another liquidity option gaining traction is loans backed by startup equity. In this model, individuals use their shares as collateral to access cash, often without selling a single share.

Here’s how it works:

• A founder or early employee borrows from a lender based on the current valuation of their equity.

• The loan typically carries interest and is structured to be repaid at the time of an eventual exit or liquidity event.

• Some companies even offer internal lending programs as a benefit to key team members.

While this option avoids dilution and keeps cap tables intact, it does carry risks, especially if the company’s valuation drops or an exit is delayed. Still, for those confident in the future of their startup, it’s a compelling way to stay invested and financially flexible.

Private Equity as a New Liquidity Channel

Traditionally, private equity firms entered the picture much later, usually post-exit. But today, many PE firms are acquiring minority stakes in growth-stage startups, offering direct liquidity to founders and early investors.

This approach has become especially appealing in tech. Firms like KKR, General Atlantic, and Insight Partners are investing in companies that may not go public for years but have strong fundamentals and clear revenue models. These investments give the startup fuel to grow, while giving shareholders a chance to take some chips off the table.

Best Practices for Startup Liquidity

If you're considering liquidity for yourself or your team, here are a few best practices to keep in mind:

1. Get Clear on the Company’s Position: Liquidity should support growth, not signal weakness. Ensure the company is in a strong financial and strategic position before exploring options.

2. Protect the Cap Table: Too many secondary sales or poorly timed loans can impact the cap table and scare off future investors. Maintain transparency and cap table hygiene.

3. Understand the Tax Implications: Secondary sales and equity-backed loans can have complex tax consequences. Involve a tax advisor early in the process.

4. Communicate with Stakeholders: Be transparent with your board, co-founders, and team. Liquidity decisions affect everyone, not just the seller.

Final Thoughts: Liquidity Is Now Part of the Growth Journey

Liquidity is no longer a one-time event at the end of a company’s story—it’s now a thoughtful part of the journey. Founders don’t need to wait a decade to see the value they’ve built. Employees shouldn’t have to walk away from great companies just to pay down loans or fund life goals.

As long as it’s managed with care, liquidity can strengthen startups, fuel new ventures, and keep everyone motivated along the way.

Exploring the Link Between Venture Building and VC-as-a-Service

In the ever-evolving startup ecosystem, two models have emerged as key players in fostering innovation and entrepreneurship: venture building and VC-as-a-Service (Venture Capital-as-a-Service). While their approaches differ significantly, they are interconnected in ways that create synergies and drive value for startups, investors, and corporations alike. This article explores the definitions, differences, and the link between these two models.

What is Venture Building?

Venture building refers to the process of systematically creating startups from scratch within a structured environment, often led by venture studios or startup studios. These studios act as co-founders, providing resources, expertise, and funding to build and launch startups.

Key characteristics of venture building include:

• Idea Generation: Studios identify market gaps and develop startup ideas.

• Operational Involvement: They take an active role in building the team, developing products, and managing operations.

• Shared Resources: Startups benefit from shared infrastructure, such as legal, marketing, and technical support.

• Equity Ownership: Studios typically hold equity in the startups they create.

Venture building minimizes the risk of failure by providing startups with a strong foundation and access to expertise, making it an attractive model for entrepreneurs and investors alike.

What is VC-as-a-Service?

VC-as-a-Service is a model where a venture capital firm offers its expertise and services to manage investments on behalf of external entities, such as corporations, family offices, and institutional investors. Instead of raising a traditional VC fund, these firms act as strategic partners, deploying capital into startups that align with the client’s goals.

Key characteristics of VC-as-a-Service include:

• Customized Investment Strategies: Investments are tailored to the client’s objectives, whether financial returns, strategic innovation, or market access.

• Outsourced Expertise: Clients leverage the VC firm’s network, deal flow, and knowledge without building an internal team.

• Focus on Innovation: Corporations often use VC-as-a-Service to invest in disruptive startups that align with their long-term vision.

This model is particularly appealing to organizations looking to innovate through external investments while mitigating the risks and complexities of direct startup engagement.

How Venture Building and VC-as-a-Service are Linked

Though venture building and VC-as-a-Service serve different purposes, they intersect in several ways, creating opportunities for collaboration and mutual benefit:

1. Complementary Roles in the Startup Ecosystem

• Venture builders focus on creating startups from the ground up, often in the pre-seed or seed stage.

• VC-as-a-Service providers focus on funding and scaling startups, often at later stages.

This complementary relationship allows venture studios to collaborate with VC-as-a-Service firms to secure funding for their portfolio startups, while VC-as-a-Service firms gain access to high-quality, de-risked investment opportunities.

2. Partnerships for Strategic Investment

Venture studios often partner with VC-as-a-Service providers to attract external capital for their startups. For instance:

• A corporation using a VC-as-a-Service model might invest in startups created by a venture studio as part of its innovation strategy.

• Venture studios benefit from these partnerships by securing funding and strategic support for their startups.

3. Integrated Models

Some organizations combine both models under one roof. For example:

• A venture studio may offer VC-as-a-Service to external partners, allowing them to co-invest in the startups the studio creates.

• This hybrid approach aligns the interests of venture builders and investors, creating a streamlined pipeline from startup creation to scaling.

4. Focus on Innovation and Risk Mitigation

Both models aim to foster innovation while reducing risks:

• Venture building reduces the risk of startup failure by providing operational support and expertise.

• VC-as-a-Service diversifies investment risks by spreading capital across multiple startups.

Together, they create a robust ecosystem where startups are not only built but also funded and scaled efficiently.

Key Differences Between Venture Building and VC-as-a-Service :

Conclusion

Venture building and VC-as-a-Service are two distinct yet interconnected models that play vital roles in the startup ecosystem. Venture studios focus on the creation of startups, while VC-as-a-Service enables the funding and scaling of these ventures. Together, they form a powerful combination that drives innovation, reduces risks, and creates value for all stakeholders involved.

As the startup ecosystem continues to evolve, the collaboration between venture builders and VC-as-a-Service providers is likely to grow, creating new opportunities for entrepreneurs, investors, and corporations to thrive.

Corporate Venture as a Service : Un Modèle d’Innovation selon Gartner et la Pratique de Mandalore Partners

Source : Gartner

Dans un monde où l’innovation est devenue essentielle pour répondre aux défis et opportunités des marchés en rapide évolution, les entreprises cherchent des approches efficaces pour intégrer de nouvelles idées et technologies. L’analyse de Gartner sur les modèles d’innovation met en lumière des pratiques structurées comme le Corporate Venture as a Service (CVaaS), un levier puissant pour combiner agilité entrepreneuriale et stratégie d’entreprise. Mandalore Partners, avec son expertise dans l’industrialisation de l’innovation, offre un exemple éclairant de cette approche.

Gartner et le Hype Cycle : Structurer l’Innovation

Selon Gartner, l’innovation doit s’inscrire dans des systèmes structurés pour maximiser son impact. Parmi les méthodes émergentes et éprouvées décrites dans le “Hype Cycle for Innovation Practices”, le modèle de Venture Client et d’autres pratiques similaires, telles que le Minimum Viable Innovation System (MVIS), permettent aux entreprises de collaborer avec des startups tout en minimisant les risques et les coûts. Ces approches se concentrent sur l’accès rapide à des technologies de pointe et à des talents, favorisant ainsi l’agilité et la rapidité d’exécution.

Mandalore Partners : Le Corporate Venture as a Service en Action

Mandalore Partners a développé une méthodologie basée sur le Corporate Venture as a Service, combinant les principes du Venture Client Model avec une approche holistique d’accompagnement. Voici comment :

1. Scouting ciblé des startups

Mandalore Partners identifie des startups alignées sur les besoins spécifiques des entreprises partenaires, en exploitant un réseau mondial et des outils technologiques avancés. En s’appuyant sur des radars technologiques émergents, cette étape permet de réduire le délai entre l’identification d’une opportunité et l’exécution.

2. Co-développement agile

Plutôt que d’intégrer les startups immédiatement, le modèle CVaaS met l’accent sur des projets pilotes rapides pour tester la pertinence des solutions. Mandalore Partners facilite ces tests en assurant un dialogue fluide entre les startups et les équipes internes des entreprises partenaires.

3. Modèle économique flexible

Contrairement aux approches traditionnelles de capital-risque, Mandalore Partners propose des collaborations souples : financements progressifs, partage de revenus ou options d’achat post-pilote. Cela garantit une implication minimale en capital initial tout en maximisant les résultats potentiels.

4. Intégration stratégique

Une fois les solutions validées, elles sont intégrées dans les processus de l’entreprise. Mandalore Partners met en œuvre des stratégies pour harmoniser les cultures organisationnelles, surmonter les résistances internes et pérenniser l’innovation.

Les Avantages de cette Approche

1. Accélération de l’innovation : En collaborant avec des startups spécialisées, les entreprises peuvent accéder à des solutions prêtes à l’emploi.

2. Réduction des risques : Le modèle CVaaS réduit les engagements financiers initiaux, ce qui permet une exploration plus audacieuse.

3. Adaptabilité : L’approche modulaire permet aux entreprises de pivoter rapidement en cas de besoin.

4. Différenciation compétitive : En combinant les ressources internes et externes, les entreprises deviennent plus agiles face aux disruptions.

Gartner et Mandalore Partners : Une Vision Partagée de l’Innovation

Gartner souligne l’importance des collaborations entre entreprises et startups pour maximiser les opportunités d’innovation. Mandalore Partners, avec sa pratique du Corporate Venture as a Service, incarne cette philosophie en aidant les entreprises à transformer les disruptions en avantages concurrentiels.

Pour les organisations prêtes à intégrer l’innovation au cœur de leur stratégie, le modèle CVaaS est une voie prometteuse, alliant souplesse, efficacité et vision à long terme. En combinant les recommandations de Gartner et l’expertise de Mandalore Partners, les entreprises peuvent bâtir un écosystème d’innovation robuste et pérenne.

The Venture Client Model in the Gartner Hype Cycle: A New Era of Corporate Innovation

Source : https://www.eventbrite.sg/e/how-the-venture-client-model-is-revolutionizing-corporate-strategy-tickets-1077442211659

In 2024, the Venture Client Model reached the “Peak of Inflated Expectations” on the Gartner Hype Cycle for New Innovation Practices. This recognition underscores its growing influence as a transformative approach to corporate innovation. However, while the Venture Client Model is making waves, it is important to explore how it complements—or contrasts with—models like Corporate Venture Capital (CVC) as a Service, particularly in the context of Mandalore’s innovation strategies.

What is the Venture Client Model?

The Venture Client Model, pioneered in 2014 by Gregor Gimmy at BMW, focuses on solving corporate challenges by treating startups as suppliers of innovative solutions. Corporations act as paying clients, purchasing and integrating startups’ technologies directly into their operations. Unlike traditional corporate venture capital or innovation programs, this model emphasizes:

• Rapid testing and deployment of startup innovations.

• Transactional relationships without equity investments.

• Focus on immediate operational value rather than long-term financial returns.

By 2024, this model’s inclusion in the Gartner Hype Cycle indicates that it has reached widespread interest but still faces the challenge of proving its sustained value beyond initial excitement.

What is Corporate Venture Capital (CVC) as a Service?

Mandalore’s Corporate Venture Capital as a Service (CVCaaS) model, in contrast, provides corporations with managed investment programs in startups. It offers:

• Equity investments for strategic or financial returns.

• Portfolio management services to identify and nurture high-potential startups.

• A long-term focus on influencing industry trends through strategic ownership.

CVCaaS helps corporations position themselves as stakeholders in emerging technologies while building an ecosystem of innovative startups around their core business.

How the Models Compare

While the Venture Client Model and Mandalore’s CVCaaS have overlapping goals of fostering innovation and startup collaboration, their approaches differ significantly in purpose, implementation, and outcomes. Here’s a side-by-side comparison:

Aspect Venture Client Model CVC as a Service (CVCaaS)

Objective Solve operational challenges through startup solutions. Invest in startups for strategic or financial returns.

Engagement Type Buyer-supplier relationship. Investor-investee relationship.

Risk Low—focused on transaction-level engagement. High—equity investments carry financial risk.

Commitment Short-term, project-based. Long-term equity ownership and influence.

Speed Rapid testing and integration. Slower, due to due diligence and investment processes.

Focus Operational value and innovation adoption. Strategic influence and ecosystem building.

Impact on Startups Revenue generation and market validation. Funding, strategic guidance, and scalability.

Complementary Models for Corporate Innovation

Despite their differences, the Venture Client Model and CVCaaS can work complementarily to create a holistic innovation strategy. Here’s how:

1. From Transactional to Strategic Relationships:

Corporations can use the Venture Client Model to identify and test startups with potential. Once proven, the most promising startups can be brought into a CVC portfolio for equity investment and long-term collaboration.

2. De-risking Innovation:

The Venture Client Model serves as a low-risk testing ground for corporate-startup partnerships. Startups that deliver operational value can transition to the CVC model, where corporations take on a higher commitment through equity.

3. Diverse Objectives, Unified Outcomes:

• Venture Client Model addresses immediate business needs with quick wins.

• CVCaaS builds strategic capabilities and positions the corporation as an industry leader over time.

4. Efficient Resource Allocation:

By leveraging the Venture Client Model, corporations avoid investing equity in untested startups. Only startups with proven results are funneled into the more resource-intensive CVC model.

Mandalore’s Approach: Leveraging Both Models

Mandalore’s Corporate Venture Capital as a Service is designed to align with the strategic goals of its corporate clients, focusing on industry leadership, ecosystem development, and long-term growth. By integrating principles of the Venture Client Model into its strategy, Mandalore offers a dual-track approach:

• Innovation Adoption: Using Venture Client practices to rapidly test startup solutions.

• Strategic Investments: Transitioning successful startups into its CVC portfolio for scaling and deeper collaboration.

This hybrid strategy ensures that corporations benefit from immediate operational improvements while positioning themselves for future industry leadership.

Conclusion: The Gartner Hype and the Future of Innovation

The Venture Client Model’s inclusion in the Gartner Hype Cycle signifies its growing prominence as a practical, low-risk innovation tool. However, as with any innovation approach, its long-term value depends on successful implementation and integration into broader corporate strategies.

By combining the strengths of the Venture Client Model with the strategic depth of CVCaaS, corporations can unlock a two-pronged approach to innovation—immediate results today, strategic advantages tomorrow. Mandalore’s ability to leverage both models offers a blueprint for companies looking to stay competitive in an era of rapid technological change.

The question for corporations is no longer whether to engage with startups but how to engage effectively—and the answer often lies in using the right combination of these complementary models.

Argumentaire pour le Corporate Venture Capital-as-a-Service (CVCaaS) auprès d’une Bancassurance

Introduction

Les acteurs de la bancassurance, positionnés à la croisée des secteurs bancaire et assurantiel, peuvent tirer un immense bénéfice du modèle CVC-as-a-Service (CVCaaS) proposé par Mandalore Partners. Ce service clé en main leur permet non seulement de renforcer leur position sur le marché, mais aussi d’apporter des solutions innovantes à leurs clients, qu’ils soient entreprises ou particuliers.

1. Un levier stratégique pour la bancassurance

• Renforcer l’image d’un acteur innovant : Grâce au CVCaaS, la bancassurance se positionne comme un leader dans la transformation numérique et l’innovation, répondant aux attentes croissantes des clients en matière de services modernes et personnalisés.

• Accéder à des solutions disruptives : En collaborant avec Mandalore Partners, la bancassurance peut identifier des startups proposant des technologies innovantes dans des domaines stratégiques comme la FinTech, l’InsurTech, ou les services ESG.

• Diversification des investissements : Le CVCaaS permet à la bancassurance de diversifier ses activités en investissant dans des startups prometteuses tout en bénéficiant d’une gestion experte.

• Développement de synergies : En soutenant des startups alignées sur les besoins stratégiques (comme les solutions de gestion des risques ou les outils d’analyse prédictive), le CVCaaS crée des opportunités d’amélioration pour les offres bancaires et assurantielles existantes.

2. Une offre différenciante pour les clients de la bancassurance

• Accès à l’innovation via un partenaire de confiance : Le CVCaaS permet aux entreprises clientes d’accéder à un écosystème de startups capables de répondre à leurs besoins en matière d’innovation et de transformation.

• Soutien stratégique pour les entreprises : Les entreprises clientes de la bancassurance peuvent externaliser la gestion de leur fonds d’investissement corporate, réduisant ainsi leurs coûts et leurs risques tout en se concentrant sur leur activité principale.

• Amélioration des performances des clients : En soutenant les clients dans leur transformation numérique et leur adoption de solutions innovantes, la bancassurance devient un partenaire clé de leur compétitivité.

• Adaptabilité sectorielle : Mandalore Partners identifie des startups alignées sur les besoins spécifiques des clients de la bancassurance, que ce soit dans les secteurs de la santé, de l’industrie ou de l’agriculture.

3. Un outil puissant pour les objectifs ESG de la bancassurance

• Alignement sur les engagements environnementaux et sociaux : Le CVCaaS intègre des critères ESG, permettant à la bancassurance de canaliser ses investissements vers des projets ayant un impact positif sur la société et l’environnement.

• Mesure de l’impact : Mandalore Partners fournit des outils d’analyse d’impact pour évaluer et valoriser les résultats des investissements ESG.

• Soutien au développement local : En soutenant des startups locales ou régionales, la bancassurance renforce son rôle de moteur du développement des territoires.

4. Pourquoi choisir Mandalore Partners ?

• Expertise sectorielle : Mandalore Partners dispose d’un réseau étendu et d’une expérience avérée dans la sélection et la gestion de startups innovantes dans des secteurs variés.

• Flexibilité et personnalisation : Le modèle CVCaaS est entièrement adaptable aux besoins de la bancassurance et de ses clients.

• Soutien stratégique : En externalisant la gestion des investissements, la bancassurance peut se concentrer sur son cœur de métier tout en profitant de l’expertise de Mandalore Partners.

Exemple concret : Une synergie gagnante

• Cas d’une entreprise cliente : Une PME agroalimentaire cliente de la bancassurance cherche à optimiser ses chaînes d’approvisionnement via des outils d’intelligence artificielle. Avec le CVCaaS, la bancassurance identifie une startup spécialisée dans l’IA pour la logistique, investit via le fonds et met en relation directe la PME avec cette solution innovante.

• Résultat : La PME améliore son efficacité opérationnelle, la startup bénéficie de financement et d’un partenariat stratégique, et la bancassurance renforce ses relations clients tout en générant des revenus additionnels.

Conclusion

Le Corporate Venture Capital-as-a-Service représente une opportunité unique pour la bancassurance de jouer un rôle clé dans l’écosystème de l’innovation. En collaborant avec Mandalore Partners, la bancassurance peut répondre aux besoins croissants de ses clients en matière de transformation numérique et ESG, tout en renforçant sa propre compétitivité et son impact sur le marché.

Trois stratégies distinctives pour assurer la pérennité des fonds de capital-risque d’entreprise (CVC)

Les fonds de capital-risque d’entreprise, connus sous l’acronyme CVC, traversent une phase de transformation. Historiquement, ces fonds étaient perçus comme éphémères, souvent dissous avant même d’avoir pu traverser un cycle complet d’investissement, qui dure généralement entre sept et dix ans. La blague courante suggérait que leur durée de vie moyenne était de quatre ans. Cependant, cette perception est en train de changer. D’après l’enquête annuelle GCV Keystone de 2024, environ 60 % des fonds CVC actifs ont maintenant dépassé cette marque de quatre ans, et un nombre croissant d'entre eux — environ 17 % — ont franchi le cap des dix ans.

Ces unités entrent alors dans ce que GCV appelle la « phase de résilience ». À ce stade, les fonds ont survécu à divers changements internes et cycles de marché. Leur valeur est non seulement reconnue par leur société mère, mais ils sont également moins susceptibles d’être perturbés par des événements internes ou externes, ayant appris à naviguer dans un environnement complexe et souvent instable.

Atteindre la phase de résilience : Trois stratégies pour durer

Pour les CVCs qui cherchent à rejoindre le club des dix ans et plus, il existe plusieurs pratiques qui les distinguent. Grâce à l’analyse des données issues de l'enquête GCV Keystone 2024, voici trois stratégies qui ressortent chez les CVCs résilients.

1. Évolution de la structure de reporting : s’éloigner de la supervision du PDG

L’un des changements notables chez les CVCs en phase de résilience est leur tendance à s’éloigner d’une supervision directe par le PDG. Traditionnellement, beaucoup de fonds CVC étaient sous la responsabilité du PDG, ce qui permettait de démontrer l’engagement de la haute direction envers le programme d’investissement. Cependant, pour les CVCs qui perdurent, seulement 19 % continuent de rendre compte directement au PDG, comparativement à 35 % dans le groupe général. Cette évolution vers une supervision par le directeur de la stratégie (chief strategy officer) ou d’autres postes stratégiques permet aux CVCs de s'aligner davantage sur les objectifs à long terme de l’entreprise tout en bénéficiant d’une plus grande autonomie.

Ce changement de reporting reflète une maturation organisationnelle. En se plaçant sous la responsabilité d’un dirigeant stratégique plutôt que du PDG, les unités CVC peuvent se concentrer sur leur mission principale sans les pressions immédiates de la direction générale, tout en restant alignées sur la stratégie d’entreprise. Cela réduit aussi le besoin d’une supervision constante par la haute direction, permettant aux CVCs de prouver leur valeur par leurs résultats plutôt que par un suivi direct.

2. Intégration des unités opérationnelles dans le comité d’investissement

Une autre pratique clé chez les CVCs résilients est l’implication accrue des unités opérationnelles dans le processus de prise de décision d’investissement. Environ 50 % des CVCs durables incluent des responsables des unités commerciales dans leur comité d’investissement, contre seulement 36 % dans le groupe général. Cette approche permet d’assurer que les investissements réalisés sont alignés sur les besoins concrets de l’entreprise et favorise des synergies entre les startups du portefeuille et les divisions opérationnelles.

L’implication des unités commerciales est cruciale pour maximiser l’impact stratégique des investissements. Cela facilite la création de ponts entre les startups et les opérations courantes de l’entreprise, rendant les innovations plus accessibles et exploitables pour l’ensemble de l’organisation. De plus, cela permet de transformer les relations avec les startups en véritables partenariats opérationnels, augmentant ainsi les chances de succès des projets pilotes et des intégrations technologiques.

À l’inverse, dans les CVCs plus jeunes, la présence du PDG dans le comité d’investissement est souvent plus fréquente, avec 51 % des unités rapportant une telle structure. Si le soutien direct du PDG est précieux pour établir le fonds et donner une impulsion initiale forte, les CVCs plus matures démontrent qu'une approche distribuée de la gouvernance est plus durable sur le long terme.

3. Diversification par des investissements indirects

La troisième caractéristique des CVCs qui atteignent la phase de résilience est leur stratégie d’investissement diversifiée, notamment par l’adoption de positions de partenaire limité (LP) dans d'autres fonds de capital-risque. Environ 59 % des CVCs résilients investissent dans d’autres fonds VC, contre 47 % dans le groupe général. En outre, 66 % des CVCs durables ont des participations dans trois fonds VC ou plus, tandis que cette proportion n'est que de 40 % dans le groupe général.

Cette approche permet aux CVCs de bénéficier d’un effet multiplicateur en accédant à un plus grand nombre d’opportunités d’investissement et en étendant leur réseau dans l'écosystème de l'innovation. En investissant indirectement dans d'autres fonds, les CVCs peuvent également apprendre des meilleures pratiques d'autres investisseurs, diversifier leurs risques et avoir une exposition à des secteurs ou à des stades d'investissement qu'ils ne couvriraient pas autrement directement. Cela crée un effet de levier qui permet aux CVCs de maximiser leur impact stratégique tout en répartissant les risques.

Conclusion

Pour qu'un fonds CVC survive et prospère dans un environnement souvent imprévisible, il doit évoluer au-delà de ses premières années en adaptant sa structure de gouvernance, en impliquant les unités opérationnelles et en diversifiant ses investissements. Ces stratégies permettent non seulement de renforcer la résilience des fonds, mais aussi de les transformer en véritables moteurs d'innovation stratégique pour leur entreprise mère, capables de générer une valeur durable et significative au fil du temps. Pour les CVCs, la clé est d'aller au-delà des simples investissements et de s'intégrer profondément dans la stratégie globale de l'entreprise.

Corporate Venture Capital: Balancing Financial Returns and Strategic Objectives

Corporate Venture Capital (CVC) is a powerful strategy for driving innovation and strategic growth. However, balancing the pursuit of financial returns with achieving strategic objectives is a complex task that requires careful planning and execution. This article explores how CVC units can effectively balance these dual goals to maximize their impact.

Understanding the Dual Goals of CVC

1. Financial Returns

• Profit Generation: Like traditional venture capital, one of the primary goals of CVC is to generate financial returns from investments in high-potential startups.

• Portfolio Diversification: Investing in a diverse range of startups helps mitigate risk and enhance the potential for high returns.

2. Strategic Objectives

• Innovation and Technology Acquisition: CVC allows corporations to access cutting-edge technologies and innovations that can be integrated into their operations.

• Market Expansion: Investing in startups can open new markets and customer segments for the parent company.

• Strategic Partnerships: CVC can foster strategic partnerships and collaborations that drive long-term growth and competitive advantage.

Strategies for Balancing Financial Returns and Strategic Objectives

1. Clear Investment Thesis

• Define Priorities: Clearly define the primary objectives of the CVC unit, whether it’s financial returns, strategic innovation, or a balanced approach. This helps in making consistent investment decisions.

• Alignment with Corporate Strategy: Ensure that the investment thesis aligns with the overall corporate strategy and long-term goals of the parent company.

2. Dual Evaluation Criteria

• Financial Metrics: Evaluate potential investments using traditional financial metrics such as ROI, IRR, and market potential. This ensures the financial viability of the investments.

• Strategic Metrics: Simultaneously assess the strategic fit of the startups, including their alignment with the company’s innovation goals, market expansion plans, and technology needs.

3. Balanced Portfolio Approach

• Diversification: Maintain a balanced portfolio of investments that includes both high-risk, high-reward startups and more stable, strategically aligned companies. This helps manage risk while pursuing strategic goals.

• Stage Diversification: Invest in startups at different stages of development, from early-stage ventures with high growth potential to later-stage companies with proven technologies and market presence.

4. Active Portfolio Management

• Regular Reviews: Conduct regular reviews of the portfolio to assess the performance of each investment against both financial and strategic metrics.

• Adapt and Pivot: Be prepared to adapt the investment strategy based on market changes, technological advancements, and shifts in corporate strategy. This includes divesting from underperforming investments and reallocating resources to high-potential opportunities.

5. Strategic Collaboration and Integration

• Integration Plans: Develop clear plans for integrating the technologies and innovations from portfolio companies into the parent company’s operations. This ensures that the strategic benefits are realized.

• Collaborative Projects: Foster collaborative projects between the parent company and the startups to drive mutual growth and innovation. This can include joint product development, co-marketing initiatives, and technology sharing.

6. Performance Metrics and KPIs

• Financial KPIs: Track key financial performance indicators such as revenue growth, profitability, and exit multiples. These metrics provide insights into the financial health of the portfolio.

• Strategic KPIs: Develop strategic KPIs to measure the impact of CVC investments on the parent company’s strategic goals. This can include metrics like technology adoption rates, market share growth, and innovation outcomes.

7. Governance and Oversight

• Strategic Committees: Establish strategic committees comprising senior executives and industry experts to oversee the CVC activities. These committees ensure that investments align with both financial and strategic objectives.

• Transparent Reporting: Maintain transparent reporting and communication channels with stakeholders, including regular updates on the performance and strategic impact of the CVC portfolio.

Case Studies and Examples

1. Google Ventures: Google Ventures (GV) is known for its balanced approach, investing in a wide range of sectors and stages. GV focuses on both financial returns and strategic alignment with Google’s innovation goals, resulting in successful investments in companies like Uber, Nest, and Slack.

2. Intel Capital: Intel Capital invests in startups that align with Intel’s strategic focus areas, such as artificial intelligence, cybersecurity, and IoT. This dual focus has allowed Intel to drive innovation while achieving significant financial returns from its investments.

3. Johnson & Johnson Innovation: Johnson & Johnson Innovation combines financial investments with strategic collaborations in the healthcare sector. Their CVC unit invests in startups that can complement and enhance Johnson & Johnson’s product portfolio and research capabilities.

Conclusion

Balancing financial returns and strategic objectives in Corporate Venture Capital requires a clear investment thesis, dual evaluation criteria, and a balanced portfolio approach. By actively managing the portfolio, fostering strategic collaborations, and tracking both financial and strategic KPIs, CVC units can maximize their impact and drive sustainable growth.

The success of a CVC program depends on its ability to align with the parent company’s broader strategic goals while delivering financial returns. By following the strategies and best practices outlined in this article, corporations can navigate the complexities of CVC and unlock its full potential, ensuring long-term success and competitive advantage in the market.

Navigating the Legal and Regulatory Landscape in Corporate Venture Capital

Corporate Venture Capital (CVC) is a powerful tool for driving innovation and strategic growth. However, navigating the legal and regulatory landscape is crucial to ensure that investments are compliant and that potential risks are mitigated. This article explores the key legal and regulatory considerations for CVC units and provides best practices for managing these aspects effectively.

Key Legal and Regulatory Considerations

1. Securities Regulations

• Registration Requirements: Depending on the jurisdiction, certain securities offerings may need to be registered with regulatory authorities. Understanding these requirements helps avoid legal pitfalls and ensures compliance.

• Accredited Investors: Many jurisdictions have specific rules regarding who can invest in private securities. Ensuring that all investors meet the criteria for accredited investors is essential for compliance.

• Disclosure Obligations: Transparency is crucial in CVC transactions. Proper disclosure of material information to investors and stakeholders is necessary to comply with securities laws.

2. Antitrust and Competition Laws

• Market Power and Monopoly Concerns: Investments that significantly impact market dynamics may attract scrutiny from antitrust authorities. It’s important to evaluate the competitive implications of CVC investments.

• Mergers and Acquisitions: When a CVC unit acquires a controlling interest in a startup, it may trigger merger control notifications or approvals. Understanding the thresholds and requirements in different jurisdictions is essential.

3. Intellectual Property (IP) Rights

• IP Due Diligence: Conduct thorough due diligence to assess the startup’s IP portfolio, including patents, trademarks, copyrights, and trade secrets. This ensures the startup has robust IP protection and avoids potential infringement issues.

• IP Ownership and Licensing: Clearly define the ownership and licensing rights of IP developed during the collaboration. This includes ensuring that the parent company has the necessary rights to use and commercialize the IP.

4. Contractual Agreements

• Investment Agreements: Draft clear and comprehensive investment agreements that outline the terms and conditions of the investment, including funding, equity stakes, governance rights, and exit strategies.

• Partnership Agreements: Establish partnership agreements that define the roles and responsibilities of each party, collaboration terms, and dispute resolution mechanisms.

• Confidentiality and Non-Disclosure Agreements: Protect sensitive information through confidentiality and non-disclosure agreements (NDAs). These agreements help safeguard proprietary information and maintain competitive advantage.

5. Regulatory Compliance

• Industry-specific Regulations: Depending on the startup’s industry, there may be specific regulatory requirements to comply with. This includes regulations related to healthcare, finance, technology, and other sectors.

• Data Privacy and Security: Ensure compliance with data privacy and security regulations, such as GDPR, CCPA, and other relevant laws. This is particularly important for startups handling sensitive customer data.

Best Practices for Managing Legal and Regulatory Aspects

1. Engage Legal Experts

• In-house Legal Team: Establish a dedicated in-house legal team with expertise in venture capital, securities law, IP, and regulatory compliance. This team can provide ongoing legal support and ensure compliance with relevant laws.

• External Legal Advisors: Engage external legal advisors with specialized knowledge and experience in CVC transactions. They can provide valuable insights and help navigate complex legal and regulatory issues.

2. Conduct Thorough Due Diligence

• Legal Due Diligence: Conduct comprehensive legal due diligence to assess the startup’s compliance with applicable laws and regulations. This includes reviewing corporate documents, contracts, litigation history, and regulatory filings.

• Regulatory Risk Assessment: Evaluate the regulatory risks associated with the startup’s business model and operations. This helps identify potential compliance challenges and develop mitigation strategies.

3. Develop Clear Policies and Procedures

• Compliance Policies: Develop and implement clear compliance policies and procedures for the CVC unit. This includes guidelines for due diligence, investment approvals, and ongoing monitoring of portfolio companies.

• Training and Education: Provide regular training and education to the CVC team and portfolio companies on legal and regulatory compliance. This ensures that everyone understands their responsibilities and stays updated on regulatory changes.

4. Monitor Regulatory Changes

• Regulatory Watch: Establish a regulatory watch function to monitor changes in laws and regulations that may impact the CVC unit and its portfolio companies. This helps in proactively addressing compliance issues.

• Industry Associations: Participate in industry associations and advocacy groups to stay informed about regulatory developments and engage in policy discussions. This can also provide a platform for influencing regulatory changes.

5. Implement Robust Contract Management

• Standardized Contracts: Use standardized contracts and templates to ensure consistency and compliance across all CVC transactions. This simplifies the contracting process and reduces legal risks.

• Contract Management System: Implement a contract management system to track and manage all contractual agreements. This helps in maintaining oversight and ensuring compliance with contractual obligations.

Conclusion

Navigating the legal and regulatory landscape in Corporate Venture Capital is essential for ensuring compliance, mitigating risks, and achieving strategic success. By focusing on key legal and regulatory considerations and implementing best practices, CVC units can effectively manage these aspects and enhance their investment activities.

Engaging legal experts, conducting thorough due diligence, developing clear policies, monitoring regulatory changes, and implementing robust contract management are critical steps in this process. By following these best practices, corporations can build a strong foundation for their CVC programs, driving innovation and growth while ensuring legal and regulatory compliance.