The challenges related to human resources in CVC

The 2023 Japan CVC Survey reveals key human resource challenges faced by Japanese Corporate Venture Capitals (CVCs), particularly in talent development. Notably, issues such as skill gaps and the lack of a structured training system are among the top concerns.

Key Human Resource Challenges in Japan's CVCs

1. Lack of Skills and Expertise
The survey highlights two major issues: the insufficient understanding of startup investments among business units and executives (40%) and the lack of in-house talent with the necessary skills and know-how for startup investments (40%). These issues point to a significant gap in specialized knowledge and expertise within CVCs.

2. Lack of Training and Development
Many respondents (40%) reported inadequate education and training for CVC staff, reflecting the underdeveloped talent development systems in place.

3. Issues with Evaluation and Compensation Systems
31% of respondents cited inadequate evaluation and compensation systems for CVC staff. The lack of proper systems may hinder the retention and attraction of skilled talent.

4. Organizational Constraints
21% of respondents noted that the limited headcount allocated to CVCs relative to workload is a challenge, pointing to delays in organizational structuring.

5. Difficulty in Securing and Retaining Specialized Talent

• 9% pointed to insufficient knowledge among CVC leaders regarding startup investments.
• 8% mentioned high turnover of CVC staff, disrupting knowledge and networks.
• 8% reported challenges in filling CVC positions.

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Summary
The human resource challenges faced by Japan's CVCs can be grouped into three main categories:

1. Lack of specialized knowledge and skills (understanding of startup investments, necessary expertise).
2. Underdeveloped talent development systems (insufficient training programs, evaluation, and compensation issues).
3. Organizational constraints (limited headcount, difficulty in securing and retaining specialized talent).

To address these issues, key solutions include:

• Developing systematic training and development programs.
• Creating appropriate evaluation and compensation systems.
• Adopting flexible talent strategies, including utilizing external experts.
• Strengthening organizational frameworks and delegating authority.

For sustained growth, CVCs must adopt a strategic and planned approach to overcome these human resource challenges.

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