Volkswagen: a CVC without the C
Volkswagen: a CVC without the C
Last October Volkswagen AG launched its first venture capital fund, to initially invest 300 million euros with a focus on decarbonization. Other funds might follow.
The fund is structured as a conventional VC and is totally independent. Volkswagen is currently the only LP (beyond the GPs) but the plan is to open it to external investors.
The decision to launch a VC more than a CVC aimed at reducing the organisational “inertia” and getting access to the most interesting startups. It has been a long journey (over 2 years) to convince the board, get the approval by the Antitrust, and internal governance (particularly rules for consolidation of results).
They target late stage companies (the sweet spot is series C). Why? We are not so experienced to work with early stage/high risk startups and prefer to work with companies with meaningful business size.
“We are still taking advantage of the C”. Volkswagen Group Innovation plays as an interface between the funds and the business units. The goal is to provide the fund with technical expertise, gather the needs from business and support the onboarding of the portfolio companies (the KPI is 20-30% of the portfolio).
This and more (including the outcomes of the first year of Venture Client activities) in the Mind the Chat with Nikolai Ardey, Executive Director Volkswagen Group Innovation.