ARTICLE
26 November 2024

VC Investments Of Strategic Investors – Objectives And Expectations, Specific Deal Terms And Related Legal Challenges

Presentation at Schulthess Forum Venture Capital 2024
Switzerland Corporate/Commercial Law

Presentation at Schulthess Forum Venture Capital 2024

THE CVC INVESTMENT SETTING AND THE ROLE OF THE STRATEGIC INVESTOR

The CVC Investment Setting

To set the stage, who are the parties involved in a CVC transaction?

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Characteristics, Objectives and Expectations

What do Strategic Investors as industry experts aim to achieve and what do they expect?

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Characteristics of Strategic Investors / Investments

  • Seasoned industry experts
    • Business development / innovation units of large corporates
    • Specialized corporate VC funds (CVC)
  • Corporate VC: (1) investment and (2) partnering

Objectives and Expectations

  • Investment activities to pursue financial and strategic goals
  • Long-term benefits of collaborating with PortfolioCo
  • Business opportunities
    • Access to innovative technologies
    • Joint development of products, solutions or services
    • Access to new markets
    • Potential acquisition of PortfolioCo
  • Commitment from Founders

Contributions from Strategic Investors

What are Strategic Investors as industry experts and partners able to contribute?

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Financial Contributions

  • (Equity) funding
  • Payments under ancillary agreements (e.g. like royalties)

Non-financial Support

  • Industry expertise
  • Management expertise (legal, finance, tax, etc.)
  • Resources, use of platform

Business Partnering / Collaboration Opportunities

  • Cooperation
  • Provision of services
  • Access to network

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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