Key Requirements for a Successful CVC Organizational Structure

According to the "JAPAN CVC SURVEY 2023" conducted by FIRST CVC, the team composition in Japanese corporate venture capital (CVC) has been shown to significantly impact its performance.

Characteristics of the Team Composition in Leading CVCs

According to the survey results, high-performing "leading CVCs" have the following characteristics in their team composition:

1. Active Use of External Talent‍

- Over 70% of the team is composed of external hires
- Emphasis is placed on candidates with investment experience or specialized knowledge
- Many hires come from VC backgrounds or financial institutions

2. Use of Internal Talent

- About 30% of the team is made up of internal employees
- These members are responsible for facilitating smooth collaboration with core business units
- They serve as internal coordinators, helping align with the company's main operations

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Organizational Maturity in Leading CVCs

The organizational structure of high-performing “leading CVCs” displays the following characteristics:

1. Ensuring Specialization‍

- Expertise in investment decision-making
- Know-how in startup evaluation
- Industry-specific insights

2. Balanced Team Composition

- Investment team
- Business development team
- Administrative departments
- Integration within the core business

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Key Points in Team Composition:

1. Organizational Independence

- Ensuring autonomy in investment decisions
- Accelerating decision-making processes
- Maintaining and enhancing specialization

2. Establishing Clear Career Paths‍

- Developing talent for CVC-specific roles
- Improving evaluation systems
- Implementing long-term human resource development plans

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Challenges and Solutions

Key challenges in CVC team composition include:

1. Securing Specialized Talent

- Difficulty in attracting talent due to increased competition
- Designing appropriate compensation systems
- Establishing clear evaluation criteria

2. Building a Development System

- Establishing training programs
- Systematizing on-the-job training (OJT)
- Creating a knowledge management framework

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Conclusion

A successful CVC requires the right team composition. Specifically, balancing external expertise with internal talent, ensuring specialization, and designing clear career paths are crucial. Moving forward, talent acquisition and development will become key factors in enhancing a CVC’s competitiveness. To build a successful CVC, it is essential to continuously improve organizational maturity while focusing on talent development and strengthening the system.