This post is sponsored by Lake Whillans, a distressed venture capital and litigation finance firm that helps companies facing litigation or arbitration.
They may work with you. But they’re not ready to trust you.
That’s a message entrepreneurs are sending in the MedCity News survey on corporate venture capital commissioned by Lake Whillans. Among the 450 innovators who took the survey, most made it pretty clear: we want to work with anyone who will give us cash and competitive advantage.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
For example, the top-tier outlets (Johnson & Johnson and Amgen) scored 3.8 or higher (out of 4) when respondents were asked to characterize their experience working with the fund. The “mid-tier” – organizations like Mayo Clinic and Takeda and Boehringer Ingelheim – scored a 3.3 out of 4.
Only one company scored less than 3 to that question.
Three out of four? Not bad.
But move down to our next category: most trustworthy. Suddenly, everyone drops a point – or more. Johnson & Johnson goes from 3.82 in the previous question to 2.53 when it comes to trust (the top score for trust).
Why such a difference?
Entrepreneurs know what they don’t know. As much as they see the pros of working with corporate VCs – “It is great, not only for the funds but for the rest of the resources you get,” one respondent told us – they also know they’re in the ring with Goliath.
They’ve heard the horror stories of corporates that, while they may get rave reviews from some partners, will pull a Mr. Hyde act when it suits them.
Work with them? Yes. But it’s still too early to trust corporate VCs.
That’s a variant of the lesson I’ve been repeating for weeks now: tread carefully.
Be ready for that worst case scenario in which you’ll have to fight Goliath for what’s rightfully yours.
