ARTICLE
10 common mistakes when working with the CVB model.
Dec 25, 2023
Although the corporate venture building model is becoming less unknown - fortunately - and more companies are launching to innovate and diversify their business through it, each interaction is a world of its own and we learn from each one, both the corporate partner and us as CVBuilders. That’s why we have gathered here the main learnings that we bring after years of experience in putting our model into practice.
If you are thinking about launching into CVB or are already in it, these bullets can mark a before and after in your experience working under this model. Here they go!
That the relationship between partner and CVB is not that of partners.
Let’s build a company together! And that should be the mindset from the beginning. If you were to start a company with someone... wouldn’t you work hand in hand with a single common interest? The same should happen here, and that genuine collaboration does nothing but give a 180-degree turn to the day-to-day, the results, and intra-team communication.
Not to get involved in the project beyond key contact points.
Very much in line with what we discussed in the previous point. Making time for the project from the corporation is key. Working together with a dedicated team would be ideal to combine the best of each party.
Not to establish initial KPIs and review and iterate them.
It is very important to know how to measure the success of what we are going to do together. It’s easy to lose focus during the process, and well-set KPIs can help us get back on track when we lose it, as well as give us an objective view when determining the success of what is being done or what to do to achieve it in case of deviations.
Ignoring market trends, or rejecting them due to individual prejudices, the typical 'thinking that I am the user'.
If we want to build a company that will coexist in a specific ecosystem... we need to tailor it, listening very well to what the market needs and demands. That prevails over our own tastes and customs.
Fear when choosing the Venture Concepts to validate.
It is very common when deciding what concept we want to validate and build, to do so from the perspective of the corporation's own objectives, and this is not entirely wrong, but it is important to set limits and not let that perspective be the only protagonist when making a decision. We have a whole research that is also relevant! If something is too core, very often the model loses meaning compared to developing concepts from within the corporation. We must leverage the CVB model as a catalyst for riskier and more innovative concepts.
Lack of communication/slow internal communication.
This often pauses or paralyzes decision-making that is strategic and subject to a time-to-market. The CVB is an agile model, based on trying and failing quickly and soon to build a validated business in the shortest time possible.
Premature abandonment, projects that are stored in a drawer.
We are aware of the commitments that the model entails and that the path is not always easy, but it is worse to abandon than to do it and fail. Good concepts, good work, and good opportunities for success are wasted. As Yoda says: 'Not try, do'.
Too much emphasis on short-term results.
Results are important, of course. And being clear on how we are going to achieve them as soon as possible with a solid thesis is important too. However, setting up a business and having it yield satisfactory results often requires time; expecting otherwise can lead to much frustration.
Insufficient support for entrepreneurial talent.
Super key point. Establishing from the beginning the mentoring and support model for the entrepreneurial team, knowing in advance that each team and each venture are different and will need different things. Providing the necessary resources eliminates frustration and exhaustion from the team, also ensuring the success of the business.
Little attention to the creation of ecosystems.
Neglecting the creation and fostering of a support, partnership, and collaboration ecosystem around the new business means a loss of opportunities for synergies and growth through strategic alliances that we cannot afford.
As we can see, this model is super relational, intense, and very flexible, which makes each project different even though it is executed under the same methodology.
Corporate Venture Builders should focus on building a solid foundation for collaboration, promoting a culture of innovation, and maintaining a long-term strategic perspective to maximize the success of the companies in which they participate.
And you? Do you miss any point? Is there anything that resonates particularly with you?
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