Just a short comment as I am flying to San Francisco this week so am interested in reader feedback about which corporations have opened a venturing unit in Silicon Valley or do deals there over the past 12 months.
I’m giving a talk to US and overseas corporations this week so I am keen to hear why groups set up there (access to innovation or to make money) and how important they are to the local venture ecosystem and what they can do to help more.
In particular, one theory is that whereas previously venture capital firms (VCs) wanted to fund the early innovation and then get corporate venturing units to pay up to support valuations, now VCs want to see corporations validate the market and technology before them or alongside them and so are playing a much larger role in the funding ecosystem.
A good example is chip company Qualcomm’s co-investment alongside top-tier VC Sequoia on a couple of health technology (HIT) deals this year: Airstrip Technologies and Telcare.
Sequoia has a great track record in the HIT space while Qualcomm Ventures under Jack Young has a good team, dedicated $100m fund and plenty of corporate insights on mobile communications even as it stretches into newer sectors for applications. Both parties complement each other’s strengths and as the syndicates are tight and they have reinvested in Telcare this month it looks to be on track for success.
Harder consortia to manage are those where the parties bring more disparate aims and cultures.
One Asian corporate venturing unit is beginning the process of deciding how and where to join international syndicates as its aims stretch beyond just wanting to find technologies to introduce back to its home country.
There are no easy solutions bar a bit of luck and trying to work with the top venture investors in the area of interest – who so often seem to be in the Valley. The question is often how do you find ways to get them to want to work with you?