EU CVC | E400 | Inven Capital’s Petr Mikovec on structuring a CVC with CEZ Group and the European Investment Bank
Jan 16, 2025
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Petr Mikovec, Managing Director of InvenCapital and expert in corporate venture capital, joins to share insights on blending corporate strategy with financial goals. He delves into how their unique structure collaborates with the European Investment Bank to drive investments in climate technologies. Topics include the significance of empathy in nurturing relationships with startups, strategies for effective board participation, and the complexities of navigating competitive dynamics in corporate investing. A masterclass in leveraging partnerships for growth!
InvenCapital's unique dual-funding structure with the European Investment Bank enables it to effectively balance strategic objectives with financial returns in climate tech investments.
The people-centric investment approach, utilizing systemic coaching, enhances relationships with founders and stakeholders, fostering empathy and alignment for better growth outcomes.
Deep dives
Innovative Corporate Venture Capital Structure
Invent Capital operates under a unique structure, having secured investments not only from its parent company, Chess Group, but also from the European Investment Bank (EIB). This dual funding allows Invent to position itself distinctly from traditional corporate venture capital, adding credibility in the eyes of startup founders and the wider VC community. The co-investment agreement ensures that investments made from one fund are matched by the other, promoting trust and collaboration. This setup reflects an effort to transcend typical corporate venture boundaries while still adhering to strategic objectives.
Focus on Climate Technology Innovations
The investment focus of Invent Capital is primarily on climate technology, reflecting its commitment to sustainability and innovation. Initially directed towards smart energy solutions, the firm has broadened its scope to include various aspects of decarbonization, candidate aggressors in tackling climate change. Notable investments include companies such as Sonnen, a leader in energy storage solutions, and Drives, which manages electric vehicle charging infrastructure. This strategic focus not only aims to generate financial returns but also contributes positively to environmental outcomes.
Emphasis on People-Centric Investment
Invent Capital adopts a people-centric approach to investment, recognizing the significance of strong relationships with founders, co-investors, and stakeholders. The firm employs systemic coaching techniques to enhance its understanding of the human dynamics involved, thus ensuring that it can add value beyond just capital. This methodology fosters empathy and alignment, helping the team to support entrepreneurs through challenging growth phases. Ultimately, the firm's philosophy iterates that successful investments stem from a deep comprehension of the people behind the startups.
Navigating Competitive Landscapes
The relationship between Invent Capital and its parent company, Chess Group, creates a complex dynamic, especially when portfolio companies are acquired by competitors like Shell. While this raises potential conflicts, it also showcases the independence of Invent, allowing it to operate for maximum success without overbearing corporate control. This autonomy is crucial for the venture capital entity to navigate the competitive landscape, ultimately bolstering Chess Group's strategic interests. Such arrangements highlight the evolving nature of corporate venture capital as firms seek to embrace risk while fostering innovation.
In today’s episode, Andreas and Jeppe sit down with Petr Mikovec, Managing Director and Chairman of InvenCapital, the corporate venture capital arm of CEZ Group. They discuss how InvenCapital operates with a unique dual-funding structure in collaboration with the European Investment Bank (EIB), blending corporate strategy with financial investment goals.
InvenCapital, which manages €500M and focuses on climate tech and sustainability, provides insights into how corporate investors can balance strategic objectives with financial returns.
Together, we explore:
How InvenCapital’s structure supports strategic and financial goals through its partnership with CEZ Group and the European Investment Bank.
The role of systemic coaching in venture investing and how it fosters stronger relationships with founders and teams.
Challenges and advantages of corporate venture capital models compared to traditional VC firms.
Strategies for effective board participation and aligning stakeholders for company growth.
How InvenCapital manages partnerships and exits when working with competitors in the energy sector.