How Large Enterprise Can Enter CVC

How Large Enterprise Can Enter CVC

Friday, Sep 29, 2023

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This whitepaper delves into the opportunities and challenges of corporate venture capital (CVC) for large, legacy enterprises, with a specific focus on state-owned enterprises (SOEs) in Indonesia and the ASEAN region, as well as how businesses can effectively enter the CVC industry to drive outsized growth.

Starting with the common problems faced by large enterprises in today's business climate and how startups can help solve these issues. Then, it examines the cautionary tales and case studies of disruption in the industry, where innovative startups have overtaken legacy incumbents.

It also emphasizes that SOEs and large corporations must acknowledge and tackle internal challenges. They need to reevaluate processes, products, and red flags that hinder future success.

We bring you to the next section to delve into understanding CVC as a model, and how large legacy players can leverage it to their advantage. It provides a snapshot of the ASEAN region's CVC landscape and an overview of Indonesia's largest CVC players.

The paper also stresses the significance of conducting a comprehensive SWOT assessment for corporations, offering a checklist for reference. It also explores strategies for handling threats, both offensively and defensively, for CVCs in Indonesia.

Not to mention, the next section scrutinizes ASEAN's capital market liquidity, forecasting an upswing in CVC returns and favouring IPOs for startups aiming at higher growth. The final section outlines SOEs' entry strategies into CVC, emphasizing the advantages of collaborating with established CVC firms like MDI Ventures, providing valuable expertise, corporate synergy, and resource efficiency for a superior CVC experience.