Global Corporate Venturing Rising Stars Awards 2018: Bharat Rajaram

Launched in March 2017 as US-based Aflac’s corporate venture fund with an investment capacity of $100m, Aflac Corporate Ventures targets early-stage companies developing software digital products that can complement its insurance provider parent’s core business.

Based in Columbus, Georgia, the unit is still in the process of being built up, but has already been assigned a president, Nadeem Khan, and a managing director, Bharat Rajaram.

Having been part of Aflac since 2009, Rajaram first started as a strategy consultant for the group, and was made director of mergers and acquisitions  and corporate development in 2015 after navigating different roles over the years.

He said: “As we looked at transactions in the insurance space, and the evolving marketplace particularly around innovative technology disruptors, we knew we had to participate because this was where the future was being built.

“My background in advising startups, and in working in private equity and venture capital, where I was exposed to product development and innovation, coupled with my knowledge of the company and the industry, made me the ideal candidate to take up this leadership role within Aflac Ventures.”

Rajaram arrived at Aflac with a broad experience spanning several industries and roles. He first spent several years at Emerson Electric in various engineering leadership, product development, and sales and marketing roles.

Having earned an MBA from the Olin Business School at the Washington University in St Louis, where he graduated as a Knight Scholar and was the recipient of the Powell Niland Prize, he then rapidly accumulated experience in the private equity and venture capital industry at the Harbour Group’s Taproot Ventures, on both the deal and the portfolio management sides of the business.

Rajaram also served as interim chief financial officer (CFO) for St Louis-based startup Novaisys, and collaborated and advised a number of the Product Development and Management Association (PDMA) in St Louis.

He said: “I was trying to create a model that would be successful at Aflac. Allowing us the operational flexibility to invest in startups, while staying close to the business so we could reap the benefits of partnering innovators and disruptors.

“As the idea developed, we had to introduce everyone to what corporate venturing was about, and why it made sense for us, and then secure buy-in from management and the board.

“Once the rationale was clear, we received their full support. From then on, it was all about building and setting things up the right way, with the right amount of capital, and a well thought out plan to deploy it.”

At the time of writing (November 2017), the unit had closed two investments, and was expecting to complete two more by year-end. In April 2017, Aflac took part in a $5m series A round for insurance decision support and distribution startup Wellthie led by IA Capital Group. In August, it chipped into a $3.5m round for facial analytics and life events prediction platform Lapetus Solutions, as well as in a $7m B round for Limelight Health, an insurance quoting solution for brokers.

The CVC also committed as a limited partner (LP) in a third-party venture fund, and closed two deals in Japan with Medical Note and MRSO, which both offer online medical appointment booking services.

Actively involved in all the deals, Rajaram is currently on the board of Lapetus and is an observer on the board of Wellthie. Nadeem Khan said: “Bharat has been an integral contributor in establishing and operating Aflac Corporate Ventures. In a very short period, he developed a strong deal sourcing and screening process as well as key relationships with other corporate and traditional VCs.”

With an associate and an analyst currently reporting to him and assisting him, the MD is still looking to beef up his team, which is a process that has not turned out to be so easy. He said: “The venture industry is very different to the corporate world, and to be successful you need to be able to attract the right kind of talent.

“Our location also makes it slightly more challenging to find people familiar with this sort of activity. Columbus (GA) is not a hotspot of venture activity, and is very different to Silicon Valley in that respect, which is why we now have satellite offices in Silicon Valley and Charlotte, North Carolina.”

Another challenge that Bajaram faced upon setting up the unit was having to build its reputation and ground game from scratch in the extremely competitive space of CVC and insurtech.

Rajaram said: “Aflac is new to venturing, and so the weight of making a good start and proving ourselves in the industry rests on my shoulders; for that, you need to have the right sort of background and skills, with the appropriate network to source deals from.

“As a strategic fund, we also need to keep looking out for the company’s interest, and keep the conversation going with key business leaders at all times.”

In 2017, Aflac Ventures deployed around $20-25m. This is a pace that it is willing to keep up in the future. “By every measure, our first year has been tremendously successful,” said Rajaram. “We have launched the fund, built our deal sourcing network and partnerships, screened over 600 opportunities, invested in six, and facilitated discussions with our business units for the majority of our portfolio companies with prospective or confirmed partnerships.”

Looking to the future, Rajaram said for now his main focus would be placed on growing the unit, and continuing to build successful businesses around the world while helping create the Aflac of the future. He does not exclude going down the entrepreneurial path further down the line.

Rajaram is also a keen tennis player and in his spare time, he tries to be on tennis courts as often as he can. He has played in and captained teams to various state and regional competitions and tournaments. He also loves travelling and spending time with family.