Corporate Startup Maturity - metered funding
Startups should be funded based on the progress they are making and not because they make great slides, are friends with the CEO or any other irrational reason. This tool provides four clear phases and 12 steps for corporate investors to determine hardcore progress of their corporate startup teams in the market. Venture board meetings should be organized around these types of metrics and milestones and assess accordingly the quality of the data the team presents. A venture board meeting is then about a ‘persevere, pivot or stop’ decision.
If a team cannot provide solid answers and data about certain points then the decision could be to give the team a couple of more weeks to figure it out. Or we decide to make a pivot in the business model (try a different customer segment, other value proposition or pricing model) or stop the program. But keep the meetings disciplined and as objective as possible. The art of creating effective venture board meetings is changing the habits of how leaders think, act and make decisions. To make this happen you need an external challenger on your board to change these habits. The external person focus on two things;
- Metrics and milestones to understand the progress the corporate-startup team is making
- Intervene if necessary in the group dynamic, and coach the individual leaders
This tool is connected to the tool ‘Startup Maturity level’