“While there is a lot of capital flowing when you work with a CVC, there are other valuable advantages such as access to customers that will benefit from this relationship”, pointed as of the most critical advantages to consider by Nathan Pascarella, Director at Hypertherm Ventures at FORGE’s December 10 Lunch and Learn on the value of engaging strategic investors for startups.
So what are the advantages of considering a CVC on your cap table? As Nathan explained, startups can get access to customers, assistance with product-market fit, and with access to pilots. Engaging with a corporate venture capital arm also provides access to geographic reach, product launch track records, intellectual property management, and even operational experience such as supply chain and lean manufacturing.
Nathan also discussed how corporate venture capital arms, such as Hypertherm Ventures, look for particular qualities in the startups they will work with. These include a leadership team with the right background with a track record of success, product, and technology with strong value propositions and a well-articulated and scalable business model. Hypertherm Ventures has the connections and presence for what many startups need to grow and scale. They specialize in advanced manufacturing in digital operations, robotics, automation, and fabrication technology. A video of the event can be found here.