NGP's Lisa Lambert is a fan of carried interest in the CVC world - Business Insider

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Intel Capital veteran Lisa Lambert jump started electric utility National Grid's $250 million in-house venture fund. Here's how she incentivized her team to outperform.

Become an InsiderWhen she launched the corporate venture organization at utility giant National Grid, Lisa Lambert decided to break from the norm in the industry and use a compensation program taken from traditional venture firms.

"Everybody models themselves after Intel Capital and rightly so," she told Business Insider in an interview earlier this month. Carried-interest programs are uncommon in the corporate venture world, where investors are usually salaried employees. Just 13% of corporate venture capital, or CVC, operations have carried-interest programs, according to a recent survey by J. Thelander Consulting, an industry research firm, although many more firms — some 25% — are considering them.

Last year, NGP opened an incubation center in its San Francisco office for very early-stage startups to help them get off the ground by connecting them with its operating businesses and with other potential customers. Most of its venture investments, though, are in growth- and later-stage startups, Lambert said.

But not all of its investing is directed by those units. NGP reserves about 25% to 35% of its funds for what Lambert calls "pathfinding" startups. These are ones that don't have an obvious strategic value for any of the parent company's particular business unit at the moment, but are working on ideas that could be relevant or useful three to five years down the line.

 

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