Johan Carlsson took over Sweden-based vehicle manufacturer Volvo Group’s corporate venturing activities as president nearly two years ago.
He recently unveiled a new strategy for Volvo Group Venture Capital. He said: “When I took over this portfolio almost two years ago I looked over those transactions, trying to identify which ones had been more successful and where we have not added leverage to businesses or good financial growth.
“In hindsight, it became clear to us we are good investing when we can combine the capabilities of the group with a company that has a new product that is ready for market and ready to be scaled up. This makes for a good investment for ourselves and other investors. That is where our venture model works best.”
He added: “Starting 15 years back I had an education in civil engineering and business finance. Using these two legs I started my career at a company backed by corporate venture capital, WireLessCar. This was financed in 1998 by Volvo Group, Ericsson and TeliaSonera, so I immediately got exposed to corporate venturing.
“I was working in the environment between start-ups and corporate capital, where I have stayed in some sense. We were fully acquired by Volvo group and I came over to the investment arm. I was four years in the organisation working as an investment director and with a number of corporate strategy roles In Volvo.”
Lessons from the top: Carlsson said: “I am convinced corporate venture capital is on the rise. Corporate needs this type of engagement model to work with new businesses. For startups working with corporate venturers is more attractive than working with the general venture community. As well as the financing, there are the general capabilities they can draw from corporate activity.
“The general venture community will probably continue to struggle for a while. My advice is to focus. Decide where you want to take your bets as a corporate, and which part of the industry you want to specialise on. Specialising focus is the only way to drive deal flow. You will never succeed as a passive investor. The only way to succeed is by doing.”