CVC Business Unit Collaboration: A Key to Success through Partnerships with Core Divisions

In addition to this article, we have provided detailed explanations of the "JAPAN CVC SURVEY 2023" in all 20 articles. Since we cover various themes, please refer to the article list below.
Full List of 20 Articles‍

According to the "JAPAN CVC SURVEY 2023" conducted by FIRST CVC, it has been revealed that effective collaboration with core business divisions is a key factor in the success of CVCs. In particular, high-performing "leading CVCs" adopt distinctive approaches to collaboration with their business divisions.

Characteristics of Business Division Collaboration in Leading CVCs

1. Relationship with Business Divisions during the Investment Review Process
- Early engagement with business divisions from the initial evaluation of investment candidates
- Establishment of regular information-sharing mechanisms
- Early evaluation of strategic synergies

2. Specific Collaboration Initiatives

Leading CVCs implement specific initiatives such as:

- Regular internal startup introduction sessions
- Regular workshops and study sessions for business divisions
- Systematic creation of collaboration opportunities with invested startups
- Use of digital platforms for information sharing

Key Points for Effective Collaboration

1. Communication Structure
- Establishment of a regular progress reporting system
- Close information exchange with business divisions
- Ensuring proper reporting lines to senior management

2. Clarification of Roles and Responsibilities
- Clear delineation of responsibilities between CVC and business divisions
- Establishment of a system to promote collaborative projects
- Standardizing the decision-making process

Challenges in Collaboration and Solutions

1. Main Challenges
- Gaining the understanding and cooperation of business divisions
- Addressing differences in speed and agility between divisions
- Difficulty in measuring outcomes

2. Solutions and Approaches
- Early involvement of business divisions
- Design of step-by-step collaboration processes
- Clear setting and sharing of KPIs

Notable Initiatives from Successful Case Studies

- Assigning dedicated liaison officers for collaboration with business divisions
- Building an internal database for collaboration cases
- Regular progress reporting sessions
- Implementation of incentive programs

Summary

For CVC success, effective collaboration with the core business division is essential. Key characteristics of leading CVCs include early engagement with business divisions, the establishment of systematic information-sharing mechanisms, and clear role allocation. In addressing challenges, they rely on step-by-step approaches and robust communication structures. Going forward, developing collaboration frameworks that incorporate these elements will become increasingly important for the success of CVC activities.

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