Why Is Trust Now the Hardest Currency in Corporate VC?
Companies pursuing investment often assess venture capital, corporate venture capital and private equity as if they offer broadly similar value. They do not. Traditional VCs specialise in capital allocation, pattern recognition and portfolio discipline, while PE firms excel at operational rigour and late-stage scaling. Corporate venture capital occupies a different and increasingly important space. CVCs can validate technologies in real commercial environments, open supply chains, accelerate go-to-market pathways and provide deep sector insight long before a product gains market traction. These are advantages VCs and PE firms simply cannot replicate. For companies preparing for their next phase of growth, recognising that distinction is central to choosing the right partners.
The latest State of CVC 2025 report by Silicon Valley Bank and Counterpart Ventures places this in stark relief. The industry is becoming more selective, more dependent on strategic clarity, and far more exposed to the reputational strengths and weaknesses of both the fund and the corporate parent. Behind the data sits a bigger story: the next competitive frontier for CVCs will not be fund structure or AI deployment. It will be trust. How CVCs are perceived by founders, LPs, corporate leaders and government stakeholders will determine deal access, partnership quality and the long-term value created for the corporate.
In a market where most CVCs target similar sectors, geographies and early-stage opportunities, reputation has become a core differentiator. The CVCs that win will be those trusted to deliver more than capital; they will be seen as strategic partners that help de-risk innovation, accelerate commercialisation and open networks that traditional investors cannot.
What the 2025 Data Tells Us About the Future of Corporate Venturing
The report shows an industry entering a more disciplined, strategically grounded phase.
1. Early-stage investing continues to dominate
Two-thirds of all CVC-backed deals now occur at seed or Series A/B, up from 55 percent in 2015. This means CVCs are shaping companies earlier and exerting more influence on commercial strategy. At this stage, trust and perception matter enormously because founders rely on their investors for guidance, networks and credibility.
2. AI now defines the investment agenda
AI represents a record 28 percent of all CVC-backed deals, with 69 percent of CVCs naming it their top technology priority. When almost every fund is chasing the same theme, differentiation comes not from the thesis but from trust, expertise and execution capability.
3. Independence is rising, but internal friction remains
A quarter of CVCs have considered moving off the corporate balance sheet, yet only 11 percent have successfully done so. Many face resistance from their corporate parent, reflecting a reputational and perception gap that CVC leaders must navigate.
4. Corporate leaders often misunderstand VC norms
Half of CVCs say their executive sponsors lack familiarity with the investment process, while others encounter unrealistic expectations around timelines and outcomes. This internal disconnect can undermine progress and reputation.
5. Secondaries are becoming essential to liquidity
Fifty-seven percent of CVCs have used or are considering secondaries, up from 52 percent last year. As pressure builds to demonstrate DPI and realise returns, financial credibility becomes central.
6. Bureaucracy is still the enemy
Half of CVCs cite speed and efficiency as major challenges, alongside corporate prioritisation and bureaucratic decision-making. CVCs must therefore project clarity, predictability and discipline if they are to maintain credibility with founders.
Why Trust, Reputation and Credibility Now Matter More Than Ever
Every insight from the report highlights one conclusion: corporate VCs no longer compete on capital alone. They compete on how credible, trusted and aligned they appear to founders and stakeholders.
1. Founders choose investors they trust, not investors that pay the most
The report shows founders often value the investor brand even more than the cheque size: 79 percent of strategic CVCs rely heavily on the corporate logo to win deals.
But brand is not enough. Founders are increasingly asking critical questions that determine a deal's success: Will this CVC actually help us access markets, or will they slow us down? Can they be trusted to navigate corporate politics that might block future rounds, and will they follow on to protect the startup from dilution? Trust and deal-flow are won or lost on the answers to these fundamental concerns.
2. CVCs must win trust inside their own corporates
The perception challenge often begins at home. Many corporate sponsors misunderstand risk, timelines or the purpose of early-stage investment. CVCs that communicate clearly, educate executives and align expectations build internal trust, which in turn unlocks independence and flexibility.
Where this trust is absent, CVCs face slower cycles, constrained mandates and reputational drag.
3. Governments and regulators are watching frontier tech more closely
AI, cybersecurity, fintech and defence-related investments carry regulatory and geopolitical scrutiny. CVCs must therefore demonstrate responsible innovation, transparent governance and clear alignment with societal and regulatory expectations. This is now a core part of reputational risk management.
This is no longer simply about venture performance. It is about geopolitical credibility.
4. CVCs are increasingly judged on how they manage risk
Financial funds must show DPI through secondaries. Strategic funds must show that their investments genuinely accelerate commercialisation.
In both cases, transparent communication, consistency and a disciplined investment narrative underpin trust.
CVCs Deliver Far More Than Capital – But Only When They Are Trusted
The report highlights that strategic funds primarily invest to accelerate commercialisation, source technology and unlock new markets. Their true value lies in offering crucial advantages like market access, customer introductions, regulatory navigation, real-world pilots, and technological validation. But founders only benefit from these advantages if they trust the CVC and its parent organisation to deliver
But founders only benefit from these advantages if they trust the CVC and its parent organisation to deliver.
Financial funds, on the other hand, bring sharper risk assessment, more consistent follow-on capital strategies, and deeper exit planning discipline. However, they only influence founders if they are perceived as reliable and transparent. When trust is strong, CVCs can de-risk innovation better than almost any other investor category. When trust is weak, founders treat CVCs as slow, political, or strategically fickle, and choose traditional VC instead.
But they only influence founders if they are perceived as reliable and transparent. When trust is strong, CVCs can de-risk innovation better than almost any other investor category.When trust is weak, founders treat CVCs as slow, political, or strategically fickle, and choose traditional VC instead.
How Startups Should Position Themselves Before Engaging CVCs
For founders seeking CVC investment and the assocaietd sector knowledge, the findings highlight several critical steps.
1. Build credibility early
Early-stage deals dominate the market. That means founders must communicate:
a clear problem thesis
a credible product roadmap
alignment with corporate pain points
a realistic commercialisation pathway
2. Understand the CVC’s mandate
The report is clear: 38 percent of funds are strategic, 44 percent hybrid, and 18 percent financial. Each behaves differently.
A founder must know:
Does this CVC invest for insight, M&A optionality or pure returns?
Does the corporate parent matter to the relationship?
Will the CVC follow on?
3. Manage perception internally
Corporate parents talk. A founder must assume:
Internal championing matters
Politics can derail a deal
Clear, consistent communication reduces internal risk
4. Be prepared for rigorous due diligence
The data shows that even strategic funds now reserve IC approval in 92 percent of cases . Consistency in messaging, data and governance builds trust fast.
What CVCs Must Do to Strengthen Trust and Reputation
The report highlights several internal dynamics that weaken reputation if unmanaged: slow decision cycles, executive misalignment, unclear mandates and inconsistent follow-on strategies.
To address this, CVCs should focus on the following.
1. Build executive-level understanding and alignment
With half of sponsors lacking familiarity with the investment process, CVC leaders must engage proactively. They must:
Educate executives on norms
Align expectations on exit horizons
Clarify ownership targets and follow-on strategy
Internal trust creates external confidence.
2. Communicate a clear and credible investment narrative
CVCs need a narrative that explains:
Their investment mandate
The value they bring
Their speed and decision-making process
How they work with founders post-investment
A consistent narrative closes perception gaps.
3. Professionalise operations to reduce friction
Speed remains a major point of criticism from founders and co-investors. Funds with a reputation for slow response times lose high-quality deals.
Streamlining IC processes, clarifying BU involvement and setting predictable timelines strengthens operational trust.
4. Develop a proactive reputation and communications strategy
Most CVCs still rely implicitly on their parent company’s brand. But the report shows that this influence rarely extends to governance or decision-making.
CVCs need their own identity.
A trusted, independent voice
A track record of value creation
Transparent communication on performance and lessons learned
This is where strategic communications becomes critical.
Recommendations Summary
For CVCs
Establish a clear, credible investment narrative.
Educate corporate leaders to close knowledge gaps.
Improve speed, transparency and operational discipline.
Strengthen post-investment support that founders can rely upon.
Communicate strategic alignment without signalling corporate interference.
Position yourself as a responsible, trusted investor in AI and frontier technologies.
For Startups
Tailor your engagement to the type of CVC you approach.
Build clarity around commercialisation and regulatory pathways.
Maintain interest from other VCs to manage timing and leverage.
Link your value proposition directly to the corporate’s strategic challenges.
Maintain consistent, disciplined communication to build trust.
Trust Is Now a Strategic Asset in CVC
The State of CVC 2025 report paints a picture of an ecosystem becoming more selective, more specialised and more strategically important. But the report also makes it clear that operational friction, misaligned expectations and corporate bureaucracy remain significant barriers.
This is a trust problem. One that cannot be solved with capital alone.
To win the best deals, influence innovation strategy and deliver value to their corporate parents, CVCs need to invest as much in their own reputation and perception as they do in early-stage AI companies.
In a world where founders have choice, governments have power and markets move fast, trust is the real competitive advantage.
And it is the CVCs that understand this, who build credibility deliberately and communicate strategically, that will shape the next decade of corporate innovation.
For organisations and corporate venture capital companies looking to strengthen their narrative, build message discipline or shape how the yare perceived internally and in the innovation sector, I would be pleased to discuss how my experience can support you
