As the venture capital arm of JetBlue, we’re dedicated to helping drive innovation at JetBlue and across the industry by investing in early-stage travel technology companies. As the Senior Analyst on the operations and partnerships team, my role is to work with startups from a commercial and business development perspective. This could mean anything from finding direct opportunities to contract with JetBlue, exploring new markets, or making introductions to other enterprises within travel, aviation, and hospitality.
As a former employee of JetBlue and current employee of JetBlue Ventures, I have seen firsthand the most effective ways for startups to work with strategic CVC firms and their mothership. This blog post explores some of my top tips on how to best approach and work with strategic CVC firms.
How to reach out
You have an idea that you think would be a great strategic fit for a CVC firm. Now, how do you reach out?
- Check for a general inbox: Many CVCs, including us, have a designated email address (in our case, it’s crew@jetblueventures.com) where startup pitches are collected and reviewed. It’s the easiest way to ensure that your pitch is seen and routed to the right member of the team.
- Connect with the right people: If there’s no general inbox, reach out to one or two individuals at the firm who appear most relevant. If possible, avoid contacting every team member at the firm — our teams are often small, and we do talk to each other! A targeted approach will be significantly more effective.
- Be mindful of what channel you reach out to: While email is preferred by some, others may prefer a LinkedIn DM. It’s a matter of personal preference, so consider the recipient’s communication style. For me personally, I would rather get something through email than LinkedIn. If you are reaching out to LinkedIn, be cordial and offer to send relevant materials over email to keep the conversation centralized.
- Be direct: Don’t be afraid to get straight to the point! Whether you want to discuss investment and product, or simply seek an introduction to the right team, CVCs are meant to be advocates for you. We’re typically more accessible and willing to engage with early-stage startups than high-level executives, so use this to your advantage.
Ways to Stand Out
As we touched on in our previous blog post on How to Have a Perfect Pitch, we see dozens of pitch decks each week to identify the best potential investments for our firm. How do you ensure you stand out against the crowd?
- Be prepared: Be ready with both investment and product materials. If you’re not sure what to prepare, ask in advance if there are specific areas they want you to address, such as use cases or potential tech integrations. Generally, CVCs are also always looking to hear about your current list of customers and any other specific success stories you can share.
- Tailor your pitch: Customize your pitch to the CVC’s specific interests. We are most likely going to want to delve deep into use cases, so familiarize yourself with specific markets and customer segments that are relevant. Being able to demonstrate you’ve done your homework can go a long way.
- Discuss follow-up steps: Be sure to ask about follow-up steps in any of your meetings. Send follow-up materials promptly afterward, and make sure these address everything you discussed during your conversations.
Be Open-Minded
CVCs are uniquely positioned to understand pain points and opportunities for disruption within the business units of the corporate arm. For my team and I, during a pitch conversation, we may see something you are presenting and imagine a different technology use case for it. I recommend being flexible and curious about learning more about the most important needs. Oftentimes, our first conversation isn’t just to listen to you; it’s also a chance for us to brainstorm with you about your take on a specific use case or issue based on what we think your startup can do.
Whenever possible, come with a demo prepared even if it isn’t perfect. Unless a CVC specifies, an information-collecting meeting may not be as productive because they may not understand what your product is capable of. Having a live demo is often more impactful and keeps the momentum going.
How to Stay in Touch
Share periodic updates with your contacts, even if you’re not pushing for another meeting. In your follow-ups, it can be a good idea to share major business milestones or achievements, as well as offer more relevant updates to your product, customer pipeline, or team updates. Creating a quarterly investor newsletter is a great way to keep your CVC contacts informed about what’s happening with your company.
Seek Strategic Guidance
One of the most significant advantages of partnering with a CVC is their industry expertise and strategic guidance. Take advantage of their knowledge and experience to improve your startup’s operations, refine your business model, and navigate complex market dynamics. Regularly seek their advice, insights, and support in areas where they have proven capabilities. Why not ask for a periodic virtual coffee with your contact or ask for mentorship? This can help you keep front-of-mind and in their network.
Actively Engage with the Ecosystem
A CVC’s industry network can provide valuable opportunities for your startup’s growth and expansion. Actively engage with the ecosystem by attending their events, conferences, and networking sessions to establish meaningful connections. Leveraging a CVC’s network can also open doors to new markets, customers, and business development opportunities, ultimately accelerating your startup’s growth trajectory.
Working with a strategic CVC can be a game-changer for startups: providing access to capital, industry expertise, and more. By following these strategies, you can get the best results when approaching and working with a CVC partner.
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