Written by Neil Hansch
As 2025 approaches, there is cautious optimism about the global startup funding landscape and outlook.
With successful IPOs and exits on the horizon in the new year, changing market dynamics, evolving priorities, and continued technological advancements, especially around artificial intelligence, are opening up new opportunities for startup founders.
For startups around the world, corporate venture capital (CVC) provides not only capital but also impactful strategic collaborations, solid proof points, access to critical resources, and a pathway to navigate the complexities of expansion. We continue to offer the possibility of
optimistic economic outlook
While macroeconomic challenges will continue, the broader economic picture heading into 2025 looks more promising than in recent years. Market analysts are predicting a positive trajectory, with financial institutions such as Goldman Sachs predicting US GDP growth of 2.5%. This optimism extends to the venture capital market as well. Endowment activity that could see more robust IPOs, increased M&A and, as a result, more ventures.
Corporate venture departments are uniquely positioned to thrive under these circumstances. When a company’s core business is performing well, there is usually more support for underwriting and expanding existing and/or new CVC activity. The result is a growing tide of broader venture ecosystems that include both CVC and institutional VC alike.
Advantages of corporate VC
CVC provides financial investment and strategic opportunities to startups, including pilot programs to test solutions, improve products, and accelerate adoption. Corporate partners often provide established distribution channels and access to global markets. For founders considering an exit, a CVC can bridge the path to acquisition, align goals, and enable long-term collaboration.
Below are some top examples of corporate venture investments that have brought measurable success to startup portfolios.
Customer-based access: Google Ventures’ initial investment in Uber enables seamless integration with Google Maps, improving user access and geographic scalability Distribution network: Intel Capital’s investment in doorbell maker Ring Funding accelerates integration with Intel’s smart home ecosystem and expands reach into IoT market Brand credibility: Salesforce Ventures backs Snowflake, Salesforce provides reliability and access to a customer base that accelerates enterprise adoption of the service. Operational Infrastructure: Walmart’s investment in Plenty ensures scalability by incorporating produce into Walmart’s national distribution network Channel Partnership: Comcast Ventures supports Nextdoor with advertising resources to expand local community engagement Worldwide Expansion: SoftBank Vision Fund’s investment in DoorDash fueled rapid international expansion by leveraging SoftBank’s local connections and market insights.
Startups are also benefiting from collaboration for customized products/services such as:
Roadie and The Home Depot: In 2020, Roadie leveraged CVC partnerships to expand operations during the pandemic and expand same-day delivery service to more than 1,300 Home Depot stores. SoundHound and Honda Motor: Through Honda Xcelerator, SoundHound has integrated the AI-powered Houndify platform into Honda vehicles to enhance the in-car experience and create new voice commerce opportunities.
Cooperation with CVC
For startups considering pursuing CVC funding, it is important to prepare and understand the common dynamics and risks and rewards of CVC funding.
Do your homework: Research the CVC partner’s portfolio, track record, and recent activity levels. Develop an approach and value proposition that aligns with their articulated focus areas, how the solution fits their needs, and partner with existing companies to maximize the potential of the vision and opportunity at hand. Provides direction for maximum achievement. Define success in advance: Work closely with your CVC partners to set clear goals for your pilot, proof-of-concept program, or other collaborative project. Aligning on what success is will help you avoid miscommunication and set the stage for scaling beyond the initial project’s goals. Plan for scale: Make sure you have a roadmap for broader rollouts and expansion beyond the initial pilot. Discuss next steps and paths for broader adoption within the enterprise ecosystem.
CVC’s role in the global venture funding landscape continued to grow in importance over the past year, as the strategic investment arms of these companies serve as one of the key foundations of the global innovation economy. For startups that are ready to embrace collaboration and think long-term, CVC and the added value it can provide along with capital can help startups scale and accelerate the speed at which they make a meaningful impact on their industry. Showing you an unparalleled path. they serve.
Neal Hansch is CEO and Managing Partner of Silicon Foundry, a Kearney company, and brings more than 25 years of venture capital, product management, technology operations, corporate development, and trusted advisory experience to lead the company. Previously, he was Managing Director of the Emerging Markets Technology Training, Investment and Incubation Program at Meltwater School of Entrepreneurial Technology, where he managed a global team of over 150 professionals and over 20 startup investments. . He began his career in Silicon Valley as an investment banking analyst at Robertson Stevens & Company during the first Internet boom (and bust!). He holds a BA from Duke University, studied at University College London, and earned an MBA from UCLA Anderson School of Management.
Illustration: Dom Guzman
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