When delving into Citytech investments, Corporate Venture Capitals (CVCs) prioritise financial returns but also seek potential synergies or customer loyalty benefits. Teng Lip Khoo of ST Engineering Ventures views this as an added value for startups approaching CVCs, providing leverage to expand their client base. Regarding investment exits, Brendon Joe of CLP Group highlights a distinct strategy of CVCs: instead of simply selling stakes for profit like traditional VC/PE firms, CVCs may opt to acquire the startup upon recognising the value of its technology for their business. Before investing, Felix Tsui from HKT Digital Ventures suggests evaluating whether the company could independently incubate similar technology.
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