Wright Partners: Building Ventures for Corporates with Corporates
28 out of the 38 Southeast Asian unicorns are corporate-backed startups and 8 of the 38 unicorns were venture built by corporations. This highlights two important points of corporate-startup relationships. Firstly, the interest in corporate venturing is increasing - the percentage of deals done by corporates in the startup scene has increased from 13% of all deals in 2010 to 37% in 2020. Secondly, corporate-backed ventures are a lot more successful than ventures in the wild - corporate-backed startups provide a 44% higher annual return and 40% lower bankruptcy rate than VC-backed startups. There is also no lack of market problems that corporates need to solve: both conventional commercial problems and tackling negative externalities that arise from operations. However, to ensure corporate value, corporates cannot just build any venture but have to choose the right ventures to build.?
To build a successful corporate venture, corporates should address three main levers. The corporate-backed venture must:
At Wright Partners, we focus on building investable ventures together with corporates, entrepreneurs, and high net worth individuals. Investable corporate ventures have strong founder(s) with clear governance, have a cap table that allows investment, and fit within corporate governance desires of the corporate partner, all while allowing optionality along the way for the corporate.?
Our corporate venturing model differs from the traditional as we believe in putting skin in the game. Wright Partners does not charge astronomical fees to build ventures and earn our keep through equity in the corporate ventures (where possible as per arrangement with corporate partners).
Get in touch with us to learn more about corporate ventures and how we can help you build investable corporate ventures.
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