Portfolio pursuits – managing the portfolio to provide strategic value 

The session is led by Eric Buatois, general partner at BGV, in conversation with Tamara Steffens (managing director, TR Ventures at Thomson Reuters) and Lukasz Garbowski (chief investment officer, Btomorrow Ventures, the CVC arm of British American Tobacco). The discussion contrasts financially driven and strategically driven CVC models. 

Key points for corporate venture investors

• Two dominant CVC models persist 
  • TR Ventures exemplifies a financially led approach, prioritising revenue growth, margins and exit potential as primary investment filters. 
  • Btomorrow Ventures operates as a strategic fund, investing to help the parent company transition away from its core business into adjacent sectors such as wellness and sustainability. 

• Strategic fit vs financial discipline 
  • Even strategic CVCs treat financial returns as a “hygiene factor” but require clear alignment with corporate objectives. 
  • Financial CVCs may still deliver strategic value, but only after investments meet strict commercial thresholds. 

• Portfolio management requires explicit prioritisation 
  • Financial investors allocate capital based on standard VC metrics and expected exits. 
  • Strategic investors prioritise continued relevance to the corporate; loss of alignment can reduce support even for otherwise viable companies. 

• Bridging corporate–startup gaps is critical 
  • Structural mechanisms (e.g. “portfolio growth platforms”) are needed to translate between corporate and startup operating models and unlock pilots, distribution and commercial partnerships. 

• Best-performing investments combine capital with commercial integration 
  • Successful cases involve corporates acting as customers, distributors or reference clients, driving mutual value creation. 

• Follow-on strategy differs by model 
  • Financial CVCs set clear expectations: follow-on is common but not guaranteed, and tied to performance. 
  • Strategic CVCs are more inclined to continue backing companies, conditional on ongoing strategic relevance. 

• Key risks in CVC portfolios 
  • Internal competition between corporate product teams and portfolio companies can emerge over time. 
  • Shifts in corporate strategy can strand portfolio companies, highlighting the importance of broad internal sponsorship. 

• Practical advice 
  • Invest with conviction as if deploying personal capital. 
  • Maintain strong founder empathy and long-term support mindset. 
  • Continuously educate and embed the CVC function within the parent organisation to sustain alignment. 

Takeaway:

The session underscores that portfolio value in CVC hinges less on selection alone and more on disciplined capital allocation, sustained strategic alignment, and the ability to operationalise corporate–startup collaboration at scale. 

This summary was generated by AI and lightly edited by GCV staff.