As the number of units entering corporate venturing mounts, it was good to see the latest Intel Capital Global Summit in San Diego opened its doors widely for the first time to many in the wider corporate venturing community. According to the head of the US-based chipmaker’s corporate venturing unit, Arvind Sodhani, the unit has been receiving so many independent inquiries on how to set up a unit that it decided it would invite representatives of interested units to attend.
The summit itself was a masterclass in conference organisation, with more than 1,100 people attending the blockbuster presentations and networking with assorted delegates. With a good system for organising punchy 15-minute interviews with most attendees, it was clear the wheels of commerce were efficiently oiled for portfolio companies and clients during these busy three days. Intel Capital kindly received Global Corporate Venturing as a guest during the proceedings.
The unit itself has reached a point where cashflow from exits funds its investments, according to Sodhani. Given Intel Capital invested $350m last year, this is an impressive feat, one doubtless not missed by the parent company’s incoming chief executive Brian Krzanich, who told delegates he was a “big fan” of the conference.
You can read our main write-up from the event, including an edited transcript of Sodhani’s enjoyable question and answer session with Bloomberg West’s Cory Johnson, in this issue. We will be reporting interviews with the firm’s managing directors in next month’s issue.
Also in this issue is our annual look at the financial services sector, and it was clear units in this sector are stepping up their corporate venturing extremely rapidly.
This charge is being led by Citi Ventures, deemed by us once again to be the sector’s most influential unit, appearing to get significant traction both within its parent bank and externally in the venture community. American Express Ventures is also investing rapidly, with that unit’s head, Harshul Sanghi, saying it was “well into” its $100m fund, set up in 2011.
The sense we have is that a greater number of corporates are winning prestige in the wider venture community.
However, people in corporate venturing are also concerned such strides can be undone by vocal figures criticising corporates, such as a recent comment by Fred Wilson that corporate venture capitalists (VCs) “suck”. This comment was felt by one adviser to dampen much of the positivity around corporate venturing in the public domain, even though Wilson subsequently clarified in an apparent apology that he opposed “strategic corporate VCs”.
Given that the most successful units, such as Intel Capital, are taking a community building approach to corporate venturing, it seems likely a cross-industry momentum could emerge.
Optimism about this was also on display at an enjoyable back-to- back event held by Qualcomm Ventures, the corporate venturing unit of the US-based semiconductor company, and US trade body the National Venture Capital Association.
This event was held under Chatham House rules, which means who said what cannot be reported. However, there was a general sense that with groups like Intel Capital and Qualcomm Ventures opening up significantly to their corporate peers, there was huge potential for corporates to build a joint innovation ecosystem. Exciting times for corporate partnerships with peers are surely ahead.