October 2023 FIRST CVC Meetup! Report #3

The 'FIRST CVC' event series has begun, where CVC members deepen their connections and share knowledge through bi-monthly meetups called 'FIRST CVC Meetup!'

Thanks to your support, the community now includes over 230 companies and 400 members. This marks the second installment of a new event series designed to create a casual, face-to-face space for CVC members to exchange information and learn from one another.

On October 19, 2023, around 40 CVC companies and approximately 10 supporting member companies gathered, with a total of over 53 participants, engaging in lively discussions.

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The event venue was once again kindly provided by Tokyu Corporation, at the 'SOIL (Shibuya Open Innovation Lab)' in Shibuya. This facility, specialized in 'social implementation,' was the perfect space for discussions between CVCs and startups. Our heartfelt thanks to everyone at Tokyu.

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Event Report

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This event aimed to promote horizontal collaboration among CVC members, which is often difficult due to limited opportunities to meet. As a result, deep discussions took place between CVC members. In this report, we share highlights from the event and participant feedback.

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‍The program for this event was as follows:

• 1) CVC Real Talk!
• 2) Mini Seminar
• 3) Networking

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1) CVC Real Talk!

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This time, we had Mr. Mori from Mynavi and Mr. Kishi from POLA ORBIS CAPITAL join us to share their thoughts on how to understand the purpose of CVCs, sharing real-life experiences and philosophical perspectives.

The key questions for this discussion were as follows. The discussions covered the gap between expectations and reality, and the practical challenges faced by both the acquired and investing sides.

Q1. What is the purpose of CVCs, based on experience?
Q2. Why has CVC evolved to aim for M&A as a means of sowing seeds, with financial returns being a secondary objective?
Q3. How did actions change once this approach was decided?
Q4. What are the plans for the next year?

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While the full details of the discussion remain private, here are a few takeaways:

• The role of CVC can be categorized into five types.
• Through experience, it became clear that CVCs aim for M&A as a means of sowing seeds, with financial returns being a secondary goal.
• By entering as a minority shareholder and building trust with the team, the group can scale further.
• When a CVC team has the flexibility to handle M&A, it can position itself as a seed-sowing entity.

The passionate discussions and explanations provided valuable learning opportunities for many participants, serving as a strong source of inspiration.

We look forward to continuing these panel discussions on the practicalities of business corporations and investment at future events.

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2) Mini Seminar

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In this event, we also held a mini-seminar for CVC, supported by the member companies of FIRST CVC. This time, ReGACY Innovation Group presented on the theme "What is the next stage for CVC in large corporations?"

• It’s a waste for trillion-yen companies to seek only financial returns in the billions
• Business transformation using venture investment, with examples from Fujifilm and Sony
• In venture M&A, it is crucial to evaluate parts that do not show up on the P&L or BS

The discussion points from the earlier panel discussion were summarized and presented by ReGACY Innovation Group, who typically supports these initiatives, making it easier to understand.

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3) Networking

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After the panel discussion and seminar, we had about an hour of networking time.

CVC personnel, who work together on a common task, had an active exchange of opinions during this time, as they had the opportunity to speak directly across industries.

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Impressions from Participating in CVC

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Chubu Electric Power Co., Ltd.
Daiki Muto
Keisuke Uemura

We were able to hear valuable insights from CVC professionals who are ahead of us, which was extremely educational.
We also had the opportunity to meet with a wide range of CVCs and business companies, not just the speakers, which we greatly appreciated.

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Rivernes Capital Inc.
Akira Abe

Honestly, while the earlier panel discussion was educational, it was also quite intense, and I felt a little nervous. However, during the later seminar, I learned that there are many different approaches, which was reassuring.
During networking, I met with various CVC professionals, listened to their experiences and concerns, and realized there are many ways for CVCs to function. It was very encouraging, and I would definitely like to participate again.

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J. Front Retailing Co., Ltd.
Norifusa Shimogaki
Shunji Yamato
Ken Ito

The panel discussion in the earlier session had many excellent insights, and the content was so impressive that I couldn’t help but share it with team members who didn’t attend. It really made me understand what the best positioning for our company’s CVC should be. I felt that we should start by reconsidering the future direction of our own CVC. In the later seminar, the trends of CVC failures discussed gave me a sense of urgency, as I felt we could fall into the same processes if we aren’t careful. Personally, I learned a lot and I definitely plan to participate again next time. Thank you, and I look forward to continued collaboration.

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Thank you very much to all the CVC participants!

We will continue to host various events to further develop the CVC industry.

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↓↓↓ You can apply for FIRST CVC here ↓↓↓

https://www.firstcvc.jp/contact

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