Corporate Venture Capital #6: Five reasons to start CVC career (2024)

It’s time for many students entering their senior year at college/ university. Which is as well the time to prepare for starting your professional career. I summarized below 5 reasons for starting & having a career in Venture Capital particularly in Corporate Venture Capital:

1. Blend of corporate stability and startup/ VC agility: CVC offers anunique blend of corporate stability withtheagility of startup or venture fund. The stability comes from leveragingtheparent companies' resources, network, and brand while still fostering a nimble and fast-paced decision-making environment. This balance provides professionals with the best of both worlds: the security of a corporate job and the dynamic, fast-paced nature of a startup.
2. Strategic and financial skills development: CVCs are strategic investors who look beyond just financial returns. They seek investments that align with the corporate strategy and can providestrategic benefits. As such, a career in CVC fosters not only financial investment acumen but also strategic thinking. Working in this field means making strategic investment decisions, managing relationships(e.g. CVC Business Development), and fostering collaborations - skills that are highly transferable and sought afterthroughout career.
3. Exposure to cutting-edge technologies and innovative solutions: CVC divisions typically operate at the forefront of technology and innovation. Working in CVC means you'll be immersed in emerging technologies and markets, thereby providing an opportunity to learn about groundbreaking advancements first-hand. As parent companies often works/ adopts the solution of the portfolio company, you will receive hands-on exposure to the technology as well from a client sideand in addition to investor side.
4. Opportunity to build a strong network: Given the unique position between corporations, venture capital and startups, CVC professionals have extensive networking opportunities. These connections span across different industries, including investors, startups, industry experts, and corporate executives. This wide-ranging network can provide a robust foundation for future career growth and opportunities.
5. Impactful work: Working in CVC offers the chance to have tangible impacts on both the corporation,the wider industry and even on our society. By investing in and fostering startups, CVC professionals help to drive innovation, create jobs, and shape the future of industries and regions. This provides a high level of job satisfaction and a strong sense of purpose.

As with the investments itself, the due diligence to select the right CVC employer is key. Few things to look out for, when looking at a job in CVC (or VC) (i) investment activity (how active is the team e.g. how many transactions a year and what is the investment size/ fund size?), (ii) investment strategy (is the investment focus matching your skills and career ambitions?), (iii) reputation (what’s the reputation of the corporationand the investment team?) and (iv) leadership (how do you connect with the leader/partner and overall team from a personality perspective?).

Finally, Yes, I am bias when saying working in Corporate Venture Capital (and Venture Capital) is very rewarding and a great choice for future career. While of course there is always a flip-side in life (higherwork load, transaction stress level, CVC often don’t pay carry), but I believe the benefits of starting and having a career at CVC clearly outweigh. So rock’n’roll…

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Disclaimer: The views and opinions expressed in this post and under Corporate Venture Capital newsletter are solely mine as the author and do not necessarily reflect the official policy, position, or opinion of my employer. Any content provided are my personal views and not investment advice.