Swisscom ventures digital transformation fund: CVC's pitch for the future
Case Study

Swisscom ventures digital transformation fund: CVC's pitch for the future

20 pages
October 2019
Reference: IMD-7-2089

The case is designed to prompt considerations of the advantages and disadvantages of accepting external money from institutional investors into the corporate venture capital fund (CVC) for Swisscom.

Our protagonist Dominique Megret, the head of the CVC, is placed in a situation which exposes him to c-suite pressures which test his ability and conviction to argue his selected path. The historical analysis showed patterns of initial vs follow-up investments, and the strategic horizon of the investments which essentially set out to support Swisscom’s growth intentions. Organic internal options are mentioned as alternatives.

As the financial means to continue to invest are limited by Swisscom, the company sets out to find external partners to co-invest – at the time an unusual path towards keeping growth options option. Megret has to convince his board that this is a good option for Swisscom.

Learning Objective
  1. How to articulate the benefit of a CVC.
  2. How to form and present an opinion whether external money should be taken, while considering scenarios, mitigating actions, and long-term impacts to telecommunication companies.
  3. How to best shape a portfolio of investments.
Keywords
Strategy, Finance, Corporate Venture Capital, Deal, Exit Strategy, Portfolio Management
Settings
Switzerland, United States of America
Services
2007-2018 (Q1)
Type
Field Research
Copyright
© 2019
Language
English
Related material
Teaching note
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