The enterprise has forever been making investment in emerging technologies by way of the corporate venture capital, but increased industry disruption led by tech-startups has resulted in an exponential rise of corporate venture units.

This surge has influenced industries across the board – consumer goods, financial services, automotive, retail, media and publishing; to name a few. These corporate venture units are now not only expected to deliver financial results but also aid a company’s quest to explore and discover innovation from the start-up space. With technology changing the business landscape rapidly, large and time-consuming investments in technological R&D are not as feasible as identifying existing solutions for the businesses. These solutions can often be acquired through strategic investments made by these corporate venture teams or through target acquisitions, where teams from these organizations are brought on board to integrate their knowledge and skill-sets.

Here are a few aspects that should be kept top of mind while setting up, operating or even setting expectations from a corporate venture team.

Structure & Goal Alignment

The structure of a corporate venture team depends upon the alignment of the team with the company’s objectives. Is the company looking purely for financial ROI or are investments to be more strategic in nature? Is the CVC team aligned to company objectives or to specific business units? All key questions to answer before bringing together a team and setting goal expectations.

Management Support

With corporate venture potentially being slightly ambiguous, it is crucial for teams to have senior management and executive advocates within the organization. This support should be provided in all situations to maintain momentum, irrespective of pressure from external forces. However, in order for this to hold true, it’s important for corporate venture teams and executive teams to be united in their vision of the team’s purpose.

Focus & Clarity

The tech world is far too immense for one team to handle singlehandedly. Corporate venture teams need to identify specific targets and set objectives aligned to the business’ areas of focus. Eliminating the noise quickens in the decision and investment process, benefiting both – the investor and investee. Clarity also enables teams to distinguish between financial and strategic opportunities for a business, determining success of the team.

Independent Operation

Corporate venture teams need to be established and treated as external unit to any organization, so that they do not fall into the trap of slow decision making and bureaucracy that exists in large global organizations. Operating from an external perspective will allow teams to tap into new potential business areas and innovation without having to work within the confines of specific business unit(s).

Internal Ecosystem

Though functioning as an external unit, CV teams needs to have in-house ecosystem that works in conjunction with them. This ecosystem could comprise of M&A, R&D, innovation and partnership teams – units that can take advantage of the independent functioning of a corporate venture team. This ecosystem will allow for the quick proliferation and exchange of knowledge as well as technology from strategic investments.