<p>Corporate venture capital isn’t just having “a bit of VC on the side.” <br />Done well, it’s a strategic lens on the future. Done badly, it’s a short-lived pet project with a half-life of <strong>3.7 years</strong> and a trail of confused founders and annoyed co-investors.</p><p>In this episode, we sit down with <strong>Martin Scherrer</strong>, Partner &amp; Head of Managed Funds at <strong>Redstone</strong>, alongside our own CVC lead <strong>Jeppe Høier</strong>, to unpack what really happens when corporates <em>leave</em> venture — and how to do it without destroying value or reputation.</p><p>Redstone runs a dual model: classic VC funds + “VC-as-a-Service” for corporates and family offices. Martin himself has lived three lives:</p><ul><li><p>Inside <strong>Swiss Re’s CVC</strong> (later shut down)</p></li><li><p>As a <strong>founder</strong> of an insurtech in Switzerland</p></li><li><p>Now as <strong>VC &amp; fund manager</strong> <strong>at Redstone </strong>across multiple corporate mandates.<br /></p></li></ul><p><br /></p><p>🎧 Here’s what’s covered:</p><ul><li><p><strong>01:37</strong> Why Martin? Why now? — Jeppe on Redstone’s VC-as-a-service role, his history with them, and why Martin is the go-to voice on CVC secondaries.</p></li><li><p><strong>02:50</strong> Redstone in both worlds — Martin explains Redstone as a VC + CVC-as-a-service platform with deep corporate, VC, and founder roots.</p></li><li><p><strong>06:12</strong> Portfolio thinking 101 — Why corporates underestimate startup investing, ignore the J-curve, and must commit to true portfolio construction + financial KPIs.</p></li><li><p><strong>09:37</strong> Runoff vs. selling the bag — Score case: options to sell the whole portfolio at a 50–80% NAV discount vs. patient value-maximising runoff.</p></li><li><p><strong>13:54</strong> Spin-outs &amp; resilience — How CVCs can evolve into mixed-LP or fully independent VC funds (Swisscom Ventures, Berliner Volksbank → Redstone Fintech III).</p></li><li><p><strong>18:27 </strong>Follow-ons in “shutdown mode” — Why corporates sometimes <em>should</em> still fund follow-ons in runoff to unlock new investors and protect upside.</p></li><li><p><strong>20:25</strong> Designing the partnership — Governance, IC design, reporting (e.g. IFRS 9), and performance-based structures that align Redstone and corporates.</p></li><li><p><strong>31:41</strong> Managing vs. buying portfolios — How Redstone runs CVC runoff as an external manager with fees + carry, versus secondary buyers who acquire the assets outright.</p></li><li><p><strong>44:02</strong> How to avoid a wind-down — The “gold standard”: bring in third-party LPs, avoid annual-budget setups, ringfence capital in a dedicated entity, and keep exec sponsors close.</p></li></ul>