Month: May 2024

Mike Smeed is managing director of InMotion Ventures, the corporate venturing arm of Jaguar Land Rover.

In this episode of the Fund Shack podcast, he speaks to Ross Butler about what the company looks for in start-up candidates and the rapidly evolving nature of corporate venture capital.

Mike the Managing Director of InMotion Ventures, the corporate venture capital (CVC) arm of Jaguar Land Rover (JLR). Mike discusses his career background, including roles at a Shanghai-based joint venture and Walgreen Boots, and delves into the unique aspects of CVC compared to traditional venture capital (VC).

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Key Highlights:

Corporate Venture Capital (CVC) vs. Venture Capital (VC):

• Similarities: CVC and VC both perform due diligence, focus on valuation and metrics, and aim for strategic investments.
• Differences: Historically, CVCs were viewed skeptically due to fears of corporate overreach. Modern CVCs have adopted VC professionalism and often invest off their parent companies’ balance sheets, with some even taking external capital.

Role of InMotion Ventures:

• Strategic Focus: InMotion Ventures aims to accelerate innovation and support JLR’s strategic transformation, especially in areas like climate, industrial, and enterprise technologies.
• Investment Approach: Unlike many CVCs, InMotion invests in early-stage startups (seed to Series A) to add significant value to both JLR and the startups.

CVC Evolution:

• Professionalization: Many CVCs now operate with the same rigor as traditional VCs, including thorough background checks and strategic valuations.
• Integration with Parent Companies: CVC leaders often come from within the parent company, blending corporate insight with investment acumen.

Strategic Mandate:

• Innovation and Collaboration: InMotion Ventures aims to help JLR achieve carbon neutrality by 2039 and focuses on technologies critical to this transformation.
• Partnerships: The firm prefers co-investing and does not lead funding rounds, maintaining about a 5% equity stake to ensure active involvement without overwhelming influence.

Investment Justifications:

• Ecosystem Access: Being an active investor attracts other investors and startups, facilitating ecosystem engagement.
• Innovation and Speed: Investing in startups accelerates innovation and market readiness, providing JLR with early access to cutting-edge technologies.
• Capital Efficiency: Strategic investments leverage larger rounds by financial VCs, maximizing impact with relatively small contributions.

Success Stories and Examples:

• Investments: Mike discusses successful investments, such as in companies developing head-up displays and augmented reality technologies.
• Collaboration with Competitors: InMotion Ventures collaborates with other automotive giants like Volvo and BMW to co-invest in promising technologies.

Value to Startups:

• Strategic Support: Startups benefit from JLR’s extensive resources, including engineering expertise and testing facilities.
• Mutual Benefits: While InMotion seeks financial returns, the primary goal is strategic alignment with JLR’s broader goals.

The interview highlights the evolving landscape of CVC, emphasizing strategic partnerships, professional investment practices, and the mutual benefits of fostering innovation within large corporate structures. Mike underscores the importance of balancing financial returns with strategic goals to drive both corporate growth and startup success.

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#Innovation #Technology #DigitalTransformation #VentureCapital #Startups #Entrepreneurship #CorporateVenture #AutomotiveIndustry #Sustainability #FutureOfMobility #BusinessGrowth #EmergingTechnologies #Industry40 #TechInvestments

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Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group and if you are interested in appearing on the show, wish to propose a client, or are interested in sponsorship, contact:

Katie Mitchell

katie@linearb.media

Linear B Group

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Foresight Group was a pioneer in renewable energy investment back in the 1990s. Today, it is a diversified investment group listed in London. Its founder and chairman, Bernard Fairman, talks to Ross Butler about

• Its expansion into global infrastructure;

• Why he favours hydrogen over electric, and

• His plans to build out the firm’s UK venture investment arm into an international-regional growth equity franchise.

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RW Blears: Our sponsor for this episode is RW Blears, a UK law firm specialising in fund management. If you are a UK venture capital manager or growth investor and need a trusted legal adviser, visit https://blears.com/

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Fund Shack podcast, host Ross Butler interviews Bernard Fairman, the Executive Chairman of Foresight Group. Bernard discusses the evolution and growth of Foresight Group, a sustainability-led investment manager co-founded by Bernard in 1984 and listed on the London Stock Exchange in 2021. The conversation covers various aspects of the business, including infrastructure, private equity, and capital management.

Key Highlights:

Company Evolution:

• Foresight Group started with a focus on venture capital but shifted to renewable energy infrastructure around 2006, foreseeing solar energy as the cheapest form of energy due to Moore’s Law.
• The company now also focuses on hydrogen as the next significant step in the energy transition.

Private Equity Strategy:

• Foresight Group has become one of the largest regional private equity players in the UK by partnering with local authority pension funds.
• The company aims to invest in local businesses to create jobs and generate regional wealth.

Investment Approach:

• The firm’s strategy includes investing in renewable energy projects and regional private equity deals.
• Bernard emphasizes the importance of scale in renewable energy to drive down costs and the role of government policies in supporting industry growth.

Challenges and Opportunities:

• Bernard discusses the competitive landscape of infrastructure investment and the convergence of private equity and infrastructure skills.
• He highlights the massive opportunities in solar energy and the energy transition, predicting it to be a multi-trillion dollar industry.

Future Goals:

• Foresight Group aims to significantly expand its infrastructure business and possibly enter international markets, starting with raising local funds before expanding further.

Market Insights:

• Bernard provides insights into the challenges of electric vehicles, emphasizing the need for coherent government energy policies and the regressive impact of rapid transitions without proper planning.

Listing on the Stock Exchange:

• The listing on the London Stock Exchange has increased the company’s visibility but has not been effective as an acquisition currency due to low market liquidity.

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#Sustainability #RenewableEnergy #VentureCapital #PrivateEquity #SolarEnergy #HydrogenEconomy #InvestmentManagement #InfrastructureInvestment #CleanTech #EnergyTransition

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FOLLOW FUND SHACK ON YOUR PREFERRED PLATFORM

LinkedIn
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PlayerFM

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Fund Shack is a private equity podcast and global media channel for alternative investment professionals. Fund Shack is produced by Linear B Group and if you are interested in appearing on the show, wish to propose a client, or are interested in sponsorship, contact:

Katie Mitchell

katie@linearb.media

Linear B Group

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