a16z Podcast | Dealing with Corporate Dealmakers -- When to Talk to Corp Dev

TL;DR

Founders should engage with corporate development to create options and partnerships, and to gain valuable information about the industry landscape and potential competitors.

Transcript

hi everyone welcome to the ACNC podcast I'm sonal and I'm here today with Jamie McGuirk who runs our corporate development function James Loftus who is on Jamie's team and focuses on consumer side of corporate development and Tyson Clark who focuses on the enterprise side of corporate development welcome guys Thanks so the reason we're doing this p... Read More

Key Insights

• ❓ Corporate development involves exploring inorganic growth opportunities like investments, partnerships, and acquisitions.
• 💁 Engaging with corporate development creates options for a company and provides valuable information about the industry and competitors.
• ❓ There are different approaches to corporate development in enterprise and consumer companies.
• 💁 Founders should be cautious about sharing confidential information and manage the length of the engagement process.
• 🤝 It is important to consider the terms and structure of a potential deal, including issues like indemnification and post-acquisition integration.
• 💍 Engaging with corporate development should align with the stage and competitive dynamics of the company.
• 😤 Engaging with multiple corporate development teams allows founders to find the best fit and shape the narrative.

Questions & Answers

Q: Why should founders engage with corporate development?

Engaging with corporate development allows founders to create options for their company, gain valuable information about the industry and competitors, and explore potential partnerships and investments.

Q: What are some pitfalls founders should avoid when talking to corporate development?

Founders should be cautious about sharing too much confidential information, manage the length of the engagement process, and carefully consider the terms and structure of a potential deal, including issues like indemnification and post-acquisition integration.

Q: How can founders know who to engage when considering corporate development?

Founders can engage with the top strategics that are important to their industry, but it is crucial to consider the stage of their company and the competitive dynamics of the industry to avoid conflicts of interest and exclusivity.

Q: What are the advantages of engaging with multiple corporate development teams?

Engaging with multiple teams allows founders to determine the best fit and avoid wasting time with the wrong partner. It also provides founders the opportunity to shape the narrative and understand different perspectives of the market.

Summary & Key Takeaways

• Corporate development involves exploring inorganic growth opportunities for a company, such as investments, partnerships, and acquisitions.

• Engaging with corporate development is about creating options and understanding the strategic landscape, not just about selling a company.

• Corporate development in enterprise companies focuses more on M&A execution, while in consumer companies it involves understanding trends and how they can be additive to products.