“Launching, Operating and Managing

Corporate Venture Capital Funds”

Sergio A. Escobar
Passion
Passion led us led
hereus here CEO & Partner, BCF Ventures
November 2021
OUR MISSION IS
TO HELP
I N N O VAT I O N
PIONEERS TO
BUILD AND
SCALE TECH
C O M PA N I E S
DISRUPTING
TRADITIONAL
SECTORS
Greetings from us
BCF Ventures: Executive Team

Independent Investment Advisory Committee

Mike Cegelsky Mitch Garber Anne-Marie Boucher

Managing Partner Chairman Business-Women, Lawyer
Panache Ventures Invest In Canada specialized in Governance &
Family Offices, BCF Law

Sergio A. Escobar
Chief Executive Officer

Nicolas Bélanger Louis Carbonneau

Managing Partner Managing Partner
W Investments Tangible Intellectual Property

BCF Ventures is the Corporate Venture Capital arm of BCF Business Law Firm
Greetings from us
BCF Law – BCF Ventures

BCF Law is a 25 years old Canadian Law Firm with offices in Montreal
and Quebec City, plus operations in France (Paris, Lyon)

Ø Corporate Finance, Banking & Securities

Ø Mergers & Acquisitions

Ø Foreign Investments

Ø Taxation & Wealth Protection

Ø Immigration & Global Mobility

Ø Labour & Employment Law

Ø Real Estate Law

Ø Intellectual Property

BCF Ventures is the Corporate Venture Capital arm of BCF Business Law Firm
Investment Strategy: Technology Focus
Diversified Portfolio focusing on B2B Enterprise Software

Big Data

We believe in the future of

Business-to-Business (B2B) Security

Cloud & SaaS Intelligent

Enterprise Software Business Analytics
leveraging the power of
Artificial Intelligence, Big Business Intelligence
Data, Business Intelligence,
Business Analytics and/or
Security. Artificial Intelligence
Investment Strategy: Industry Composition
Diversified Portfolio focusing on key industries to be disrupted

Supply Chain & Enterprise

Mobility Productivity

HealthCare Legal
Technologies Technologies

Sport Regulatory
Technologies Technologies
(Legal & Finance)
 Deal-Flow Sourcing: Global Partnerships
Access to a Global Pipeline of 5,000+ Startups per Year.
BCF Ventures invests mainly in the United States & Canada.

SOSV

Techstars

Creative Destruction Lab

Founder Institute

Dreamit

Startupbootcamp

Acceleprise

5+ Startups from list above

BCF Ventures concentrates its efforts in United States & Canada. For
international startups, we provide assistance to relocate to Canada.
 Unique Expertise on Technical Due Diligence
Trifecta Effect: “Team, Product / Intellectual Property, Market”

Intellectual Property Strategies on

BCF Ventures is the Product Development
Corporate Venture Capital
arm of BCF Business Law.
Intellectual Property Third Party
Through that synergy, BCF Infringement
Ventures leverages the
professional in-depth
technical knowledge of a Patent Portfolio Commercial Value
cohesive multidisciplinary Assessment
team of lawyers and patent
agents qualified in the United
States, Canada and Europe. Data Privacy Policies
Assessment
LAUNCHING,
O P E R AT I N G
AND
M A NAG I N G
C O R P O R AT E
VENTURE
C A P I TA L
FUNDS
 Common Structure of Corporate VC Funds
Process involving stakeholders within the Corporate Government

Corporation
Access to BU’s Capital Investment

- Investment Strategy
- Network - Global

-
Sourcing
Investment Review,
Execution and
Operations CVC Governance
-
-
-
Board of Directors
Investment Committee
Advisory Committee
Monitoring Direct or BU or Fund
- Overall CVC Fund
Management

Investment

Startup Startup Startup Startup

Startup Startup Startup Startup

Define Core Corporate Expertise
Expertise across selected industries and technologies

Artificial
Transportation
Intelligence &
& Automotive
Blockchain

HealthCare Software &

Technologies Hardware

Legal, Finance
Real Estate &
& Regulatory
Property
Technologies

Medical
Supply Chain
Devices &
& Logistics
Digital Health
 Launching a Corporate VC Fund
Process involving stakeholders within the Corporate Government

Implemented a systematic process to carefully consider all aspects before engaging with
management and board at BCF Law Firm. Must consider all the pros/cons to tailor the
CVC structure to the reality of the Corporation.

• Legal • Deal-Flow
• Thesis • Support
Strategy Model • Team Operations • Due Portfolio
• Model • Reporting
• Governance Diligence

1 Launching 2 Operating 3 Managing

Average life-time of a Corporate VC Fund varies

between 3 to 5 years
 Launching a Corporate VC Fund: Strategy
Process involving stakeholders within the Corporate Government

What is the CVC operating model?

1. Corporate balance sheet without Business Unit (ad hoc, case by case)
2. Corporate balance sheet with Business Unit (yearly targets, Thesis & Themes driven)
3. Independent CVC Fund with Legal Entity. Corporation is only Investor. Subject to significant
corporate parent control (board of directors): Evergreen Open Fund
4. Independent CVC Fund with Legal Entity. External investors: 10-years Closed Fund.

What are the priorities to setup a CVC Fund?

1. Financial returns
2. Supporting existing Business Units (Innovation, Engineering, M&A, etc)
3. Create new Business Units
4. Prepare for Future Disruptions

Which C-Level executive does the Head of CVC unit report?

1. Board of Directors
2. CEO or CTO or R&D
3. Innovation or Strategy or Corporate Development
4. Marketing
 Operating a Corporate VC Fund: Operations
Process involving stakeholders within the Corporate Government

Which stages of investment do you focus on?

1. Pre-Seed / Pre-Revenue
2. Early-Stage / Post-Revenue
3. Growth & Late-Stage

What is the loss rate of your fund?

1. Under 30%
2. 31% - 50%
3. 51% - 75%
4. 76% or higher

What percentage of the investments are tied to a Commercial Deal with Corp HQ?
1. Less than 25%
2. Between 25% - 50%
3. Over 50%

Do you help your Corporation’s Mergers & Acquisition team identify targets?
1. Yes
2. No
 Managing a Corporate VC Fund: Portfolio
Process involving stakeholders within the Corporate Government

How do you support portfolio companies?

1. Board seats / Observer seats
2. POC / Pilot Trials (paying client)
3. Partnerships and/or Access to Business Network (introductions)
4. BU: Access to Marketing & Public Relations
5. BU: Access to technical expertise / R&D team
6. None – Solely equity funding

What legal rights would you like to have on your portfolio companies?
1. Right of First Offer for Acquisition
2. Right of First Negotiation for Acquisition
3. Block Right on Sale Transaction (Veto)
4. Right of First Refusal for Financing
5. Pro-Rata Rights, Information Rights, Others

How many of your portfolio companies must be acquired by Corp HQ?

1. Less than 25%
2. Between 25% - 50%
3. Over 50%
U N I Q U E VA L U E
PROPOSITION
T O F U L LY
SUPPORT
C O R P O R AT E
INVESTMENTS
THROUGHOUT
A L L S TAG E S
 • Defining and elaborating the mandate, strategy and investment focus for
Investment the CVC unit.
Strategy
Corporate Venture Capital Fund
• Defining, modelling and structuring the best corporate legal and fiscal
Legal & Fiscal structure for the CVC Funds. Establishing a proper governance.
Strategy

• Leveraging extensive global networks to help corporations identify

Deal-Flow startups matching the investment thesis
Sourcing

• Conducting multifaceted evaluation (due-diligence) of investment

Investment candidates using venture evaluation know-hows
Review

• Executing investments by negotiating and signing contracts with

Execution & investees. Monitoring corporate management.
Monitoring

• Providing liaison functions to ensure smooth creation of business

Corporate- synergies between corporations and investees.
Startup
Synergies
Passion led us here