Will EU corporate venture capitals thrive? A look into the crystal ball
by Jeppe Høier, Corporate Venturing expert, former Partner at Maersk Growth and CFO at Heartcore Capital | Originally published on Linkedin.
Guest post by Jeppe Høier, Corporate Venturing expert, former Partner at Maersk Growth, and CFO at Heartcore Capital | Originally published on Linkedin.
lntroduction: In the ever-evolving landscape of investment, questions about the longevity and success of corporate venture capital (CVC) in Europe are surfacing with increasing frequency. Much like the skepticism faced by European Venture Capital (VC) two decades ago, today’s CVC landscape is at a crossroads, poised for a decisive turn. This newsletter delves into the past, examines the present, and ventures a glimpse into the future of European CVCs as a response to one of the many great questions I received last week presenting to the Nordic ecosystem hosted by Francesco Di Lorenzo at Copenhagen Business School .
Historical Context: Twenty years ago, European Venture Capital was under scrutiny, doubted by many to be a viable player alongside its American counterparts. Yet, against odds and amidst skepticism, it not only survived but thrived, fostering innovation and entrepreneurship across the continent. The journey from doubt to dynamism mirrors the resilience and adaptability that is emblematic of the European investment ethos. The journey was paved by many different driving forces in different ecosystems London, Berlin, Paris, Stockholm but the list is much longer.
Looking Forward: The Future of EU CVCs: The evolution of EU CVCs may well mirror the path taken by European VCs, marked by growth and robust integration into the global venture ecosystem. With enhanced focus on strategic value creation, adaptability in investment approaches, and an increased commitment to sustainability, the future looks promising for European CVCs.
What is really needed for the survival of EU CVCs is the education of senior leaders. A study by Professor Ilya Strebulaev has highlighted a significant gap
more than 60% of respondents believe that their executives do not understand the norms of the venture space, and that educating them is a consistent struggle, compounded by the frequent turnover at parent companies.
European leaders must understand how they can contribute to the development of their companies using the Venture Capital toolbox. I strongly recommend that more leaders participate in some of the excellent CVC courses offered by universities such as Stanford University , INSEAD , and Columbia University. Additionally, organizations like Global Corporate Venturing provide valuable courses that can make a substantial contribution as well."
At the same time, I can only hope for share analysts to start adding value to CVC efforts. As often emphasized by Linda Yates from Mach49, it’s unfair that these efforts are not sufficiently recognized by the market. A shift in this perception could lead to even greater development, not only in the EU but globally.
Conclusion: Just as the European VC ecosystem matured and prospered, facing down early doubts with robust performance, EU CVCs are well positioned to adapt, innovate, and thrive. The lessons from the past pave a path forward, suggesting a resilient future for corporate venturing in Europe.
Call to Action: As stakeholders in the European innovation ecosystem, it is incumbent upon us to foster environments that enhance CVC efficacy and ensure that Europe remains a vibrant hub of entrepreneurial activity.
Thanks for sharing my newsletter