JAPAN CVC SUMMIT 2024: Human Resource Development in CVC <Session Report>

The Importance of Talent and Organizational Structure in Launching a CVC

In the establishment of a Corporate Venture Capital (CVC), talent composition and organizational structure are extremely important. At the largest CVC-focused event in Japan, the "JAPAN CVC SUMMIT," held on July 2, 2024, Kohei Takizawa of Paramount Bed Co., Ltd. and Tatsuya Ishii of Toshiba TEC Corporation took the stage under the theme "What kind of talent is needed in a CVC?". They discussed their experiences joining CVCs, their current work, and future career paths, exploring the qualities required of individuals in CVCs. The moderator was Torujiro Nakagaki, former of DNX Ventures.

The Difficulty of Gaining Understanding in a CVC

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Torujiro Nakagaki (hereafter, Nakagaki): I have been active as a venture capitalist for over 30 years and recently supported the establishment of CVCs at business companies through DNX Ventures. The CVC position has its own unique challenges. Balancing the interests of startups, business units, and management, while working in an environment where results don’t show immediately, is not easy. Today, we have invited two leaders who are active in CVCs to discuss the roles and qualities required in CVCs. Let's start with self-introductions.

Kohei Takizawa (hereafter, Takizawa): I am in charge of the CVC at Paramount Bed Co., Ltd. After joining the company in 2007 and working in hospital sales, I transferred to the corporate planning department in 2022, where I jointly launched the CVC with SBI Investment Co., Ltd.

Tatsuya Ishii (hereafter, Ishii): I am responsible for investment projects in the CVC at Toshiba TEC Corporation. Originally, I was involved in open innovation at Culture Convenience Club Co., Ltd., but I moved to Toshiba TEC due to a fortunate opportunity.

Nakagaki: Although both of you have different backgrounds, you are involved in CVC. What challenges did you face in the CVC, and how did you overcome them?

Takizawa: I started with no knowledge or experience regarding CVCs, so there was no one internally to consult. What helped me overcome this was seeking advice from external experts. When I was struggling with the internal evaluation system and training structure, I consulted Mr. Shitagaki, who had launched the CVC at J. Front Retailing Co., Ltd., and proceeded with internal communication based on his advice.

Ishii: Gaining understanding within the company is a common challenge in CVCs. Since the results of investments may only show years later, it is difficult to get others to understand the value. Additionally, startups often ask "What can you do for us?" and it is important to meet those expectations.

The Importance of Adjusting Expectations in Startup Investments

Nakagaki: Ishii-san, how did you increase investment achievements while not being able to gain full understanding from your colleagues?

Ishii: First, I shifted the focus of investments from business synergies to financial returns. By achieving financial returns, management can more easily recognize the success. In fact, when a late-stage startup went public, management became more positive about CVC activities.

Nakagaki: It seems that technical adjustments led to success. Takizawa-san, what have you focused on in your investment activities?

Takizawa: I have emphasized adjusting the expectations of startups. I made sure to clearly communicate what we could and could not do, which also helped to spread the risk.

The Importance of Balance in Internal Communication

Nakagaki: CVC plays a role that looks beyond mid- to long-term plans. What are the key points in overcoming this difficulty?

Ishii: I place great importance on communication with the CEO. In CVC activities, closely working with the CEO is essential to materialize the company's direction.

Takizawa: At our company, communication with the CEO is also easy, but when asking the CEO to speak at external events, it is important to bring out their strengths.

Nakagaki: What about communication with management and employees other than the CEO? I assume there might be some resentment or jealousy regarding CVCs.

Ishii: Indeed, there are times when I am seen as "the CEO's person," but in the future, I aim to communicate with each individual and earn the support of the majority.

Takizawa: I prioritize communication with each department head and make efforts to deepen understanding through daily interactions.

The Importance of Collaboration Beyond the Company for the Continuation of CVCs

Nakagaki: The CVC career path is outside the standard corporate track, but what are your thoughts on your future career?

Takizawa: Given the possibility of personnel changes, it is difficult to set a career plan, but for the time being, I want to focus on building a sustainable framework for CVC activities within the company.

Ishii: I believe strengthening CVC activities will contribute to Japan's future. Moving forward, it is important for CVCs to collaborate with each other and rapidly generate more innovations. Let's create an exciting future together.

Nakagaki: We had the privilege of hearing valuable insights into the activities and career perspectives of CVC professionals. Thank you very much for today.

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