Three pillars for successful corporate venture governance

When it comes to corporate venture building, the key to success is a proper system in place. That system is corporate venture governance.

At its core, corporate venture governance is a structured framework that guides the planning, execution, and management of corporate ventures. It ensures ventures align with the company’s strategic goals while operating efficiently and sustainably.

In September, we had the privilege of hosting a workshop on venture building governance with Frank Mattes, author of Lean Scaleup and the recently published NOW and NEW, and corporate venture building leaders like Head of Venture Building at DB Schenker, Head of Innovation at Rubner and others. Below are some key takeaways from that session:

Three pillars of corporate venture governance

Pillar 1: Making the right decisions

To make informed decisions, you need clarity on the playing fields and strategically aligned areas where venture building should take place.
A well-structured decision-making body should have:

• Optimal board size (not too big, not too small — just right for your organization)

• Strategic member selection, where each member adds value and fulfils a clear role

• Full commitment and focus (venture governance shouldn’t be a small agenda item in a busy meeting).

• A willingness to embrace risk, foster constructive disagreements, and adopt a VC-like mindset

• A clear distinction between opinions, facts, and evidence to guide decision-making
  

Pillar 2: Getting the right people on board

To ensure success, you need top-tier entrepreneurs throughout your venture’s lifecycle. As the participants concluded, the "best" entrepreneurs often come from outside the corporate world and prefer ventures that aren’t majority-owned by the corporate.

The type of entrepreneur you attract should vary by stage (pioneers first, scalers later) and by the type of venture. For example, Studio or CVC approaches with minority stakes require different profiles than those with a majority stake. These entrepreneurs have different ambitions, and you must incentivize them accordingly.

Pillar 3: Operationally driving opportunities

To maximize your ventures’ potential, you must extend your unfair advantage: funding, operational capabilities, networks, partnerships, expertise, intellectual property, and data.

Managing uncertainty is also crucial. Uncertainties in venture building can trigger emotional reactions, so it’s vital to engage internal stakeholders personally. Understand their needs and limitations to assess what risks can be taken and what must be protected.

Once you’ve accounted for these factors, ensure senior management is aligned, especially when exceptions are needed (e.g., outsourcing legal support or building a dedicated sales team). Don’t forget to formalize these exceptions for future reference.

In cases of disruptive initiatives, involve the core organization only when necessary. Venture builders need autonomy to navigate uncertainties, while the core organization naturally tends to be more risk-averse.

We were thrilled with the engagement and insights from our participants during the workshop. The value of bringing corporate venture-building leaders together in one room was evident.

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Pillar 3: Operationally driving opportunities

To maximize your ventures’ potential, you must extend your unfair advantage: funding, operational capabilities, networks, partnerships, expertise, intellectual property, and data.

Managing uncertainty is also crucial. Uncertainties in venture building can trigger emotional reactions, so it’s vital to engage internal stakeholders personally. Understand their needs and limitations to assess what risks can be taken and what must be protected.

Once you’ve accounted for these factors, ensure senior management is aligned, especially when exceptions are needed (e.g., outsourcing legal support or building a dedicated sales team). Don’t forget to formalize these exceptions for future reference.

In cases of disruptive initiatives, involve the core organization only when necessary. Venture builders need autonomy to navigate uncertainties, while the core organization naturally tends to be more risk-averse.

We were thrilled with the engagement and insights from our participants during the workshop. The value of bringing corporate venture-building leaders together in one room was evident.

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