The Covid-19 pandemic will enable new technologies and reshape how businesses perceive innovation, Tarik Galijasevic, managing director of Allstate Strategic Ventures, told Global Corporate Venturing.
Data will play an increasingly vital role going forward as different players interact virtually with each other in the venture ecosystem according to Galijasevic, who featured in GCV’s 2019 Powerlist and who oversees US-based insurance provider Allstate’s corporate venture capital (CVC) arm.
For example, Amenity Analytics – one of the unit’s portfolio companies – has a natural language processing engine that helps users understand the data embedded in the texts of an organisation, providing a better understanding of its processes and customers.
“Everything comes down to data,” Galijasevic argued. “Understanding data will allow us to serve our customers and partners more effectively.”
Allstate Strategic Ventures was formed in 2015 and invests from series A stage through series C, putting up between $1m and $10m per deal. Most of its portfolio is undisclosed but it primarily backs developers of insurance technology and adjacent areas including new mobility models, the internet of things, and deep and frontier tech.
The unit is actively seeking new investment opportunities while continuing to support portfolio companies, having completed a follow-on deal in recent weeks.
“We see a lot of value in working with leading startups even during turbulent times,” according to Galijasevic, who added: “In fact, I feel it is even more valuable for startups to work with CVCs at this time as we can be a revenue source and strategic development partner.”
He believes reinforcing close collaboration with other corporate venturing units is beneficial to the industry, and Allstate Strategic Ventures has strengthened its relationships with CVC peers including Intel Capital, the venture capital subsidiary of semiconductor and data technology producer Intel.
“A lot of corporate VCs will share similar problems,” Galijasevic said, adding: “The biggest challenge I see is not a lack of quality companies but figuring out the right valuation and building the best possible syndicate.
“For instance, we look for corporate partners in the mobility space, from rental car companies to tier-one automotive OEMs (original equipment manufacturers) that might be looking for solutions to different problems that are built on the same technology or platforms.
“Almost every investment we have made includes at least one other strategic investor outside of insurance space.”
The unit seeks to leverage its portfolio companies’ technologies to help Allstate serve its customers optimally. To achieve this goal at a time of crisis, regular communication is crucial, whether it is with the team, business units, startups or venture peers.
Galijasevic said: “We have weekly and biweekly catch-up meetings with our business partners to ensure they have what they need and they are continuing to work actively on internal projects with our portfolio companies.
“In addition, I have been speaking with our portfolio companies’ CEOs on a weekly basis, not only providing advice but also actively working with them to evaluate every aspect of their business as well as potential business opportunities worth pursuing during these turbulent times.
“My goal is to ensure that every single portfolio company has a plan on how to survive and ideally thrive over the next 18 to 24 months under a number of different scenarios.”
Similar to his corporate VC peers, the quality of a startup’s team is important when evaluating a potential opportunity, as the unit has strict investment return expectations.
“The same holds true as we look to hire team members for our organisation,” Galijasevic said. “I have been fortunate over the past year to not only build but also expand our team, and hired some senior talent with substantial experience.”
The Allstate Strategic Ventures team also includes GCV Rising Star Jack Statza and fellow Powerlist member Reese Schroeder, the latter of whom had previously been managing director for corporate venturing units Motorola Solutions Venture Capital and Tyson Ventures.
“I am proud of my team and how they are handling the situation. Although we are not in the office together, a lot of work is being done with minimal disruption.”
Photo courtesy of Tarik Galijasevic.
