Welcome to the first episode in our dedicated Corporate Venture Capital ("CVC") series here on the New Era FinTech Podcast.

In today's episode, Grant Niven, founder and partner of Mingzulu joins me to discuss the role of CVC in the fintech and financial services ecosystem.

Grant gives us an overview of his background in financial services as well as his experience working with growth-stage founders, established banks, and the investment community.

Together we define the concept of CVC and explore the different types of CVC methodologies generally in use. We set out the main drivers behind why financial institutions choose to engage in CVC, (i.e. maximizing returns, strategic alignment, speed to market) -- and we discuss the challenges and considerations in setting up a CVC unit within an organization such as a bank.

Grant shares insights on the questions and concerns financial institutions have when considering CVC and the need for a clear understanding of the value CVC can bring to the organization.

If you'd like to discuss financial services CVC with Grant and the team, reach out to him directly on LinkedIn here: Grant Niven. His company website is here: Mingzulu.com.

Standby for the next CVC series episode coming very shortly! If you've any recommendations for individuals we should be featuring across the CVC series, please send me a note to ewan@ned.partners.

Takeaways

• Corporate venture capital (CVC) is a strategic investment by a corporation in external startups or ventures, with objectives that go beyond financial returns.


• CVC allows established organizations to innovate, partner with startups, and gain access to new technologies and markets.


• The main types of CVC methodologies include financial returns-focused, strategic-focused, and hybrid models that balance both objectives.


• Organizations engage in CVC to maximize returns, achieve strategic alignment, and gain speed to market.


• Setting up a CVC unit within an organization requires careful consideration of the strategic intent, operationalization, and governance. The founder community in the Middle East is generally open to the idea of corporate venture capital (CVC) and sees it as an opportunity for growth and scaling.


• Speed and alignment are crucial in CVC partnerships, and founders look for organizations that can move quickly and provide long-term support.


• Clear strategy and top-down support from the organization are essential for successful CVC initiatives.


• Diversity in cap tables and collaboration with other investors can be attractive to founders.


• Financial institutions considering CVC need to have a clear understanding of the value it can bring to the organization and align it with their strategic goals.


• Internal processes and governance can be a challenge in implementing CVC, and organizations may need to consider external partnerships.


• The Middle East offers significant opportunities for growth and innovation in the CVC space, particularly in sectors like e-commerce and telecommunications.


• Governments and central banks play a role in supporting the CVC ecosystem through initiatives like sandboxing and regulatory transformation.

Chapters

• 00:00 Introduction to CVC in Fintech


• 02:50 Understanding CVC: Strategic Alignment and Financial Gain


• 07:35 Differentiating CVC from Traditional Venture Capital


• 13:49 CVC as a Tool for Innovation and Brand Enhancement


• 22:49 CVC's Need for Speed and Operationalization


• 24:01 Engaging with Founders in the CVC Journey


• 24:57 The Challenges of Funding for Founders


• 26:41 Strategic Alignment and Acceleration Opportunities


• 27:36 Diversity of Cap Tables and Complementary Investors


• 28:10 The Appeal of CVC for Founders


• 29:50 Setting Up a Successful CVC


• 35:31 Outsourcing CVC to Established Players


• 41:16 The Growth Potential of CVC in the Middle East and Africa