The recent global focus on the importance of innovation has once again placed corporate venture capital (CVC) in the spotlight. With a burst of new programs and the recommitment of long-time players, CVC is certainly back – but with significant differences than in its earlier incarnations.
With the resurgence of CVC, an old debate once again arises: should programs pursue the familiar ROI metric of financial returns, or should strategic measures be placed at the forefront of priorities?
Most CVC managers agree that delivering strategic value back to the enterprise is more important than chasing ROI, but given the mantra “if it can’t be measured it doesn’t exist,” rare is the firm that can resist it. Like the drunk who looks for his lost car keys under the streetlight, it’s not that it’s where they really expect to find value; it’s just where they can shed some light.
The Innovation Capitalsm method establishes an empirically-driven, objective, and sustainable system for: