Corporate Innovation and Venture Investing: Investor Mandate
Corporation Innovation & Corporate Venture Capital Investor Mandate Interview
Founders of B2B startups and early stage investors who want to understand how corporate innovation labs and client-backed investing work.
Quotes from the session
"We're almost there to get a deal with one of these large organizations. 99.9% of the time, that's not almost there."
"You may have your biggest client be an investor on your cap table, which is always a good thing, especially when you look for liquidity coming into an acquisition."
"Our investment strategy is really focused around the problems that those clients are having."
Summary
A strategy and product development firm that serves Fortune 1000 companies also invests in early stage startups. The guest explains that the investment focus comes from problems the firm's clients face. Innovation labs at those clients aim to improve digital processes, disrupt their own business, and create sandboxes where startups can work with them. The firm offers startups access to its client network and helps build products the right way for a client from day one.
In the interview with Richard C. Wilson, the guest describes how a client might become an investor in a startup, which he sees as helpful in some exit situations. The guest reports two exits, one at 18 months and one at nine months. The focus areas are auto and financial services, with a preference for lean B2B teams. The main advice for investors is caution, since a deal described as almost done with a large organization rarely is.
Facts and figures
- The guest reports one acquisition exit at 18 months and another within nine months.
- Innovation labs focus on three goals: better digital processes, disrupting themselves, and startup-friendly sandboxes.
- The guest says 99.9% of the time a deal described as almost there with a large organization is not.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Corporation Innovation & Corporate Venture Capital Investor Mandate Interview. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around cap table structuring, client investor arrangements and exit transaction terms. Do not use AI to write your own legal agreements.
What to take from this talk
- Client problems drive the mandate. The firm's investment strategy is built around the problems its Fortune 1000 clients have. It sees those problems up close through its design and product work.
- Three goals of innovation labs. Corporate innovation labs want better digital processes, a way to disrupt their own business, and sandboxes that make it easy for startups to work with them. The firm helps power those labs.
- Clients can become investors. The guest views a large client as an investor as a positive, especially in some exit situations. The guest says exits have happened at 18 months and within nine months.
- Trusted access beats cold outreach. It is hard for a large enterprise to trust a startup, especially around data privacy. A trusted adviser already behind the firewall can introduce a startup to several clients, such as many financial institutions.
- Caution on almost-signed deals. The guest says that when a startup is almost there on a deal with a large organization, 99.9% of the time it is not. He prefers a signed engagement or an adviser already working inside the client.
Related questions
- How do I close a funding round?I close a funding round by focusing on investors who fit the opportunity and moving each interested prospect through clear, consistent follow-up.
- What documents do investors request during due diligence?Prepare a clear, organized package covering your operations, investments, compensation, team, and track record.
- How do I raise capital for my business?I raise capital by building a repeatable system for attracting the right investors, establishing credibility, and developing relationships before asking for money.
Questions about this video
What kinds of companies does the guest like to work with?
He likes lean, innovative teams with products that can scale quickly. The main areas are auto and financial services, and the most successful companies have had a B2B model.
Why does a client on the cap table matter?
The guest says a major client as an investor is a good thing in his experience, especially in some exit situations. He reports one exit at 18 months and another within nine months.
What is the guest's top advice for investors?
Be cautious with very early stage companies. He suggests looking for a signed engagement or an adviser already inside the client, rather than trusting that a deal is almost done.
Put this into practice with the investor meeting follow-up checklist. See all venture capital resources.
