“While 95% of startups wish to develop long-term corporate partnerships, only 57% of them have done so.” – Boston Consulting Group
Cisco’s John Chambers predicted, many years ago, that every company has, or will, become a tech company. Digital technologies have revamped almost every corporate function and activity. But where some companies simply change their process, other companies have dedicated their entire livelihood, and that of their teams, this. They delve deeply into finding the new, the better, the more efficient. They’re innovative – and they yearn to deliver change. They’re disrupting the marketplace and it’s because of this that venture investors have started to sit up and take notice, and why corporate venturing is becoming a tool fuelling exponential business growth.
In a recent study conducted by the Boston Consulting Group and Hello Tomorrow, in-depth interviews were held with key ecosystem players, including investors, support organizations, and mentors to understand the world of corporate partnership and choice available to emerging and growing businesses and entrepreneurs today. The research revealed that the challenge facing the industry today is not that there’s not enough choice – it’s simply that they, and their investing partners, don’t know how to make the relationships work.
This sentiment found in the results of the survey where 95% of startups wish to develop long-term relationships with corporate partners, but only 57% of them actively pursuing the opportunity.
According to the same survey, the following challenges resulted in hesitation from startups in pursuing a corporate venture partnership. We take a look at these challenges, and how we work with you to build a funding opportunity to build the corporate relationship you dream of:
Inadequate preparation on the part of the startup, including lack of a clear value proposition, application, and proof of concept
“Failure to fund sufficiently and well in advance is consistently the single biggest threat to success” – #ThatsWhatWeSaid. But it’s not only the failure to fund. Insufficient planning, and a lack of growth strategy sets any entrepreneur for certain failure, before they’ve even opened their doors to trade. We bring a diverse skill set to cover all functional expertise. We bring extensive experience. We bring a strong current and City network with high networth individuals, single family offices, corporate finance advisors, funds and institutions – so we know what they’re after. What better position can you be in by having a partner who knows where you want to be, knows how to get you there, and knows how to deliver success – while letting you get on with your business?
Failure of both parties to clearly define the relationship right from the beginning, including agreeing on vision, business, knowledge, and HR objectives
Singlehandedly, the biggest cause for abandoned success is a lack of communication – either between you and your market, your market and you, your stakeholders and you. Critically, CFPro Ventures has extensive experience and in-depth understanding of the process of engaging with the City, the options to consider and the preparation required to be successful. We speak your language, but we also speak the language of the City. Our team has led businesses through challenging times, and we understand what it takes to implement strategy that delivers growth for the long-term. So, don’t worry about not knowing how to say something, or where to address it – simply worry about having the right partner next to you that is able to open up opportunity and help you to drive your business.
Misalignment of timing and processes, including complex and slow corporate decision-making
All too often, things appear far more complicated than they really are. That’s why we like to keep things simple, straight-forward, and clear. That’s why, working with us is a simple 3-step process, and find a schedule that works for your plans and drives you to move forward. CFPro Ventures has a detailed process that mirrors investor due diligence. It will also include preparation of a business plan, financial forecasts and investor presentations. We work with you and your team to ensure that you are ready for your next step.
But we don’t just leave you to it. CFPro Ventures will have an in-depth knowledge of the type of investment / investor required that perfectly suits your business. We will use this knowledge to pre-select a small number of relevant individuals, institutions and advisers with the view of keeping the process as succinct and competitive as possible.
The biggest challenge post-investment is the ability to keep creating a trading environment where exponential growth is encouraged and achieved. With the business leadership focused on product/service offerings, markets, competitors and clients, we will look after all the other requirements, which we refer to as the business infrastructure.
So, what are you waiting for? Let’s talk today and set you on your way.
Insight for those who are looking for investment opportunities and those who are looking to partner with corporate venture capital as part of their growth plan.