CVC Sourcing Strategy: Effective Deal Sourcing Channels and Methods

Success in Corporate Venture Capital (CVC) relies on discovering high-quality investment opportunities. Recent research highlights effective sourcing strategies and channel utilization.

Key Sourcing Channels

Research on key sourcing channels shows the following to be particularly important:

1. VC Referrals (87%)

• Utilize extensive industry networks
• Access to high-quality deal information
• Screening from a professional perspective

2. Introducers & Advisors (86%)

• Leverage professional intermediary services
• Systematic deal sourcing
• Streamlined initial screening

3. In-house Staff Referrals (80%)

• Utilize internal networks
• Collaboration with business departments
• Deal discovery at the ground level

4. Angel Investors (72%)

• Access to promising seed-stage deals
• Leverage individual investor networks
• Relationship building from early stages

5. VC Referrals from LPs (72%)

• Sourcing deals through strategic LP investments
• Priority deal flow based on trust
• High-quality deals introduced by specialized VCs

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Other Important Channels

• Company website registration (61%)
• Consulting firm introductions (56%)
• Accelerator referrals (40%)
• Users of company platforms (22%)

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Key Points for Effective Sourcing Strategies

1. Adopt a Multi-Channel Strategy

• Combine multiple channels for a comprehensive approach
• Leverage the characteristics of each channel for deal discovery
• Ensure risk diversification and deal variety

2. Strengthen Relationships

• Build ongoing relationships with key channels
• Conduct regular information exchanges
• Foster mutual trust

3. Efficient Deal Evaluation Process

• Establish evaluation criteria specific to each channel
• Optimize the screening process
• Build a rapid decision-making system

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Summary

In CVC sourcing activities, leveraging professional channels such as VC referrals and specialized introducers is essential. Particularly successful CVCs effectively combine multiple channels and ensure continuous relationship building to gain access to high-quality deal information. The use of internal networks is also a key factor, with the balanced use of both external channels and internal resources being central to an effective sourcing strategy. To maximize investment opportunities, it is important to understand the characteristics of each channel and strategically adopt a multi-channel approach.