Highlights
- Deloitte Ventures focuses on Canadian Series A and B software startups in six strategic sectors.
- The fund leverages Deloitte’s 1,500 partners and 15,000 employees to source deals and support portfolio companies.
- Rigorous due diligence includes multiple stages from initial screening to investment committee approval.
- Jay Crone’s diverse career spans government, investment banking, entrepreneurship, and corporate venture capital.
- Deloitte’s strategic value lies in enabling portfolio companies to access its vast enterprise client network.
- Strong interest in vertical AI and fintech innovations like stablecoins and payments.
- Jay’s advice to young professionals: take more risks and align your business vision with your goals.
Summary
In this episode of the Innovators and Investors Podcast, Christian Marquez interviews Jay Crone, Managing Director and Venture Capitalist at Deloitte Ventures. Jay shares detailed insights about Deloitte’s corporate venture capital (CVC) strategy, investment thesis, and operational approach. Deloitte Ventures focuses on investing in innovative Canadian software startups at the Series A and B stages, primarily targeting sectors relevant to Deloitte clients, such as cybersecurity, climate tech, fintech, future of work, health tech, and AI. Their strategy balances financial returns with strategic relevance, leveraging Deloitte’s extensive network of 1,500 partners and 15,000 employees to source deals, conduct due diligence, and provide portfolio companies with valuable business development opportunities.
Jay outlines his career progression from government policy roles to investment banking, entrepreneurship, corporate development at Hootsuite, and corporate venture capital at Telus Ventures before joining Deloitte in a leadership role. His entrepreneurial experience shaped his investment philosophy, emphasizing the importance of vision alignment and delegation in building scalable businesses.
Deloitte Ventures’ due diligence process is rigorous, involving initial screenings, building internal teasers, detailed financial and product evaluations, and multiple engagements with founders, with investment decisions ultimately approved by Deloitte’s C-suite executives. Although they aim to meet founders in person, it is not always mandatory due to logistical constraints.
Post-investment, Deloitte Ventures provides strategic value mainly by facilitating commercial partnerships and helping portfolio companies navigate Deloitte’s complex organizational structure. They also offer traditional VC support such as market comps, valuation guidance, and strategic advice.
Jay expresses enthusiasm about the potential of vertical AI, which tailors AI solutions to specific industry needs, and fintech innovations like payments and stablecoins, while acknowledging challenges in these sectors. He advises early-career professionals to take more risks and embrace learning opportunities, reflecting on his own career journey and the value of pursuing passion and happiness.
Key Insights
- Strategic and Financial Balance in CVC: Deloitte Ventures exemplifies a hybrid corporate venture capital model that seeks financial returns while investing in companies strategically aligned with its core advisory services. This dual focus enables them to create value both as investors and as commercial partners, increasing deal flow quality and post-investment support.
- Leveraging Organizational Scale for Deal Flow and Support: With 1,500 partners and 15,000 employees, Deloitte Ventures taps into an unparalleled network for sourcing deals and identifying market needs. This internal ecosystem acts as a “superpower” by providing deep sector insights and client introductions, which are critical advantages over traditional VCs.
- Due Diligence Integrates Subject Matter Expertise: Deloitte’s due diligence process is enhanced by subject matter experts embedded across the firm who provide industry-specific insights on product defensibility, market size, and client pain points. This cross-functional collaboration strengthens investment decisions beyond typical financial metrics.
- Complexities of Corporate Partnership Navigation: While Deloitte’s size and reach offer portfolio companies great opportunities, the firm’s complex, decentralized partnership structure can pose challenges. Deloitte Ventures acts as an internal guide to help startups navigate these complexities, ensuring smoother commercial engagements and maximizing partnership value.
- Vertical AI as a High-Impact Emerging Sector: Jay highlights vertical AI—AI solutions tailored to specific industries—as a promising field with significant market potential. Unlike general-purpose AI, vertical AI’s ability to automate labor-intensive, repeatable tasks addresses critical pain points, especially in sectors experiencing labor shortages, thus commanding a high willingness to pay.
- Entrepreneurial Experience Informs Investment Philosophy: Jay’s experience as a founder taught him the importance of vision alignment and delegation in building scalable startups. This perspective influences Deloitte Ventures’ approach to identifying companies with strong institutional growth potential rather than lifestyle businesses, emphasizing the need for strategic capital alignment.
- Risk-Taking as a Career Catalyst: Jay’s advice underscores a fundamental VC and entrepreneurial mindset: embracing risk and learning from outcomes rather than fearing failure. Early-stage career risk-taking is vital for growth and opportunity, a lesson that resonates deeply with founders and investors alike.
Overall, the conversation offers a comprehensive view of how Deloitte Ventures blends corporate resources, strategic insight, and venture capital discipline to support innovative Canadian software startups, positioning itself as a distinctive player in the CVC landscape.
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