BRAZIL Trends and Developments Contributed by: Fernanda Levy, FM/Derraik
A long-term vision is not just desirable; it is essential for ensuring that CVC investments drive meaningful innovation, produce strategic growth and have sustained corporate impact. Definition of the team The composition of the CVC team is also a deter - mining factor for the success of the operation of CVC programmes. It is not enough just to have experienced professionals; it is essential to bal - ance corporate knowledge with expertise in the venture capital market. This balance allows for a more strategic approach, ensuring that CVC can act effectively in selecting start-ups, managing the portfolio and creating value for the parent company. Diverse teams not only bring together different perspectives but also improve innovation capac - ity and decision-making. Teams that combine professionals from within the corporation and the venture capital ecosys - tem have significant advantages: • Greater buy-in from leadership: Solo industry teams are more likely to present less align - ment with the strategic objectives of the parent company. When the team has repre - sentatives from both the company and the innovation market, there is greater accept - ance and involvement of the corporation’s executives, ensuring strategic support and avoiding misalignment of expectations, as discussed earlier. • Improved relationship with start-ups: CVCs with homogeneous teams tend to face diffi - culty in integration between start-ups and the corporation. Professionals who understand the corporate culture and the innovation mar - ket are able to establish more productive con -
nections, thus increasing collaboration and the implementation of strategic synergies. • Operational autonomy: Diverse teams tend to be more autonomous, enabling agile deci - sions without relying excessively on corporate bureaucracy. The structuring of CVC teams must contem - plate establishing points of contact within the parent company. It is important to create direct channels with executives and leaders of strate - gic areas to facilitate the capture of synergies and accelerate innovation processes, while also identifying and reporting any obstacles or prob - lems with a much clear and fast approach. In summary, the composition of a CVC’s team directly influences its ability to generate value and maximise the return on investments. Suc - cess depends on a balanced structure, which combines the corporation’s internal knowledge with the agility and innovation of the venture capital market. Focus on value creation Continued management of the portfolio com - panies is a key factor in the success of a CVC programme. The initial investment of a CVC programme in a start-up is only the first step in a complex jour - ney, where value creation is the most critical aspect to ensure impact for both the invested company and the corporation. Active portfolio management and continuous engagement are crucial for CVC to fulfil its role as a catalyst for innovation and strategic growth. After the capital injection, the CVC needs to intervene actively to ensure that start-ups have the necessary support to thrive. This support involves closely monitoring the start-up’s devel -
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