Know What's Happening in Venture Capital

E658 | Martin Scherrer, Redstone VC: CVC Secondaries Without Burning Bridges

In this episode Martin Scherrer of Redstone VC explains how corporate venture arms can exit their investments through secondary sales or managed runoff without eroding value or relationships. He highlights the importance of treating CVCs as true portfolio managers—using proper KPIs, governance structures, and performance‑based fee models—to avoid the typical short‑life, “pet project” pitfalls. Scherrer also shares practical tactics such as spin‑outs, continued follow‑on funding during wind‑down, and ring‑fencing capital to keep corporate sponsors engaged while attracting third‑party LPs.