Watch the replay of this webinar in GCV’s The Next Wave webinar series, which took place on May 8, 2024.



In today’s competitive VC market, money is fungible, and the bar has been raised for corporate investors. High potential startups have clear expectations of both the strategic capabilities and the investment professionalism of CVCs.

A willingness to participate in follow-on rounds is seen as one indicator that a CVC understands the ‘rules of the VC game.’ GCV Keystone benchmarking research shows that more than half of CVCs now allocate at least 20% of capital as follow-on reserve.

However, a willingness to follow on doesn’t mean ignoring sound investment management practices or creatively contributing in other ways.


This webinar explored some of the nuances for CVC participation in follow-on rounds:

  • How should follow-on funding be reflected in CVC portfolio construction models (i.e. pre-approved reserves)?
  • How does investment decision-making differ for follow-ons versus new investments?
  • When not to follow-on (while minimizing reputational risk and negative impact to the portfolio company)
  • Opportunities and challenges of down rounds and pay to plays for CVCs
  • Other mechanisms for CVCs to support portfolio companies and earn equity without contributing capital (e.g. performance-warrants)
  • Watchouts and key success factors for CVC participation in follow-on financing



Sandi Knox, Partner, Sidley Austin
Crispin Leick, Managing Director, EnBW New Energy Ventures
David Hayes, Managing Director, Decarbonization Partners

Moderated by: Mark Klopp, Instructor, GCV Institute