Aug 23, 2017 · 23m · 20vc
20VC: What Are The Big Questions Entrepreneurs & VCs Must Ask Corporate VCs, Why Corporate VCs Are Not Your Best Lead For Series A & Why The "You Have To Network Your Way To Us' Is Wrong with Allison Goldberg, Managing Director @ Time Warner Investments
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In this episode of The 20 Minute VC, host Harry Stebbings interviews Allison Goldberg, Managing Director at Time Warner Investments, about the evolution of corporate venture capital, open deal sourcing, and strategic investment criteria. Goldberg offers practical advice for founders evaluating CVCs and shares insights into Time Warner's investment thesis across digital media, gaming, and frontier technologies.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Harry holds 37.2% of the talking time here. How this is scored →
Harry as informed peer 2.7 Guest teaching 3.5 Guest disagreement 1.3 Harry pushing back 1.3
speaking balance: gold is Harry, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 5:00 Rejection of VC gatekeeping culture
Alison forcefully rejects the widespread VC consensus that entrepreneurs must network their way to investors, dismissing warm introduction requirements as unnecessary.
Hardest push from Harry ▶ 18:30 Pressing on corporate VC leading rulesHarry pushes Alison to establish a strict rule on whether corporate VCs should only participate from Series B onwards rather than co-leading Series A rounds.
Biggest teaching moment ▶ 14:53 Clarifying fund lifecycle vs return realitiesAlison corrects Harry's assumption regarding fund lifespan constraints, explaining that early exits drive superior IRR and cash returns across all fund structures.
Harry holds his own ▶ 17:47 Highlighting Series A corporate signaling riskHarry demonstrates strong VC domain expertise by raising the nuanced problem of negative signaling when a corporate VC leads a Series A round.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Harry as informed peer | Guest teaching | Guest disagreement | Harry pushing back | Why |
|---|---|---|---|---|---|---|
| Allison Goldberg's Career Path to Time Warner Investments | 2 | 3 | 0 | 0 | Harry introduces Alison and asks standard background questions about her career path to Time Warner Investments. Alison details her trajectory from investment banking to corporate VC and explains how Time Warner maintained steady investment pacing across market cycles. | |
| Open Sourcing and Debunking Networking Gatekeeping | 3 | 3 | 2 | 2 | Harry probes how corporate VC sourcing works and whether open-door inbound policies apply to general VC. Alison rejects traditional VC gatekeeping norms, arguing that requiring warm introductions is unnecessary and counterproductive. | |
| Millennial Content Brands and Video Game Investments | 2 | 4 | 1 | 1 | Harry asks about millennial consumer content trends and video game investment thesis. Alison educates Harry on Warner Brothers' $1.5 billion internal games division and how media IP integrates with innovative gaming platforms. | |
| Evaluating Frontier Tech in Virtual and Augmented Reality | 3 | 4 | 2 | 2 | Harry asks how lack of traditional 10-year fund lifecycles changes corporate VC investment horizons. Alison reframes Harry's premise, pointing out that shorter exit horizons produce higher returns across all venture types regardless of fund structure. | |
| Founder Strategy for Partnering with Corporate VCs | 4 | 4 | 1 | 2 | Harry asks sharp questions about founder pitfalls when taking corporate VC money, specifically citing Series A signaling risk. Alison provides clear guidance on deal terms and round timing to avoid negative downstream signals. | |
| Quick-Fire Question Round with Allison Goldberg | 2 | 3 | 2 | 1 | In the quick-fire round, Harry asks rapid-fire questions covering media trends, books, and sports references. Alison drops a Philadelphia 76ers reference that catches Harry off guard, leading to lighthearted banter. |
Statements from this episode (17)
Time Warner Investments maintained consistent annual deployment since late 1990s
“We invested sort of the same ish amounts every year, starting from the late nineties before I was there through now.”
Time Warner Investments reviews approximately 600 deals annually
“So we look at around 600 ish deals a year.”
Goldberg: Founders should not have to network their way to VCs
“You know, we want to see a diversity of ideas from a diversity of different kinds of people, and so the whole concept of you have to network your way to us, I don't really believe in that.”
Goldberg: VCs should accept business plans sent via Twitter DMs
“And if people DM you or try to DM you or at you on Twitter and want to send you a business plan, say yes. You know, it's not that hard.”
Time Warner Investments maintains a 50/50 balance between financial and strategic returns
“I think for us, it's definitely both. So we need to make money. You know, we want to be competitive with VC returns and make money for our shareholders and our company. But the strategic piece for us is equally important. So it's sort of a fifty-fifty.”
Time Warner Investments does not invest to pipeline early corporate acquisitions
“So, you know, we're very upfront to say that's not why we're doing this. So we're not making these investments to have an early look at a potential business. Acquisition down the road.”
Founders should be cautious of CVCs using investments as acquisition pipelines
“So if that is sort of the MO of the strategic group, I'd be cautious if I were an entrepreneur.”
Goldberg: Bustle is the largest web site for women aged 18-34
“So it's driven our investments in companies like Bustle, which is targeting women, 18 to 34, and they're now the biggest site on the web hitting women, 18 to 34, which is amazing.”
Warner Brothers generates $1.5 billion in top-line gaming revenue
“Warner Brothers has now has around a one and a half billion dollar top line games business, which is amazing.”
Goldberg: Time Warner Investments' initial check size is $3M to $10M
“When we first go into a deal, typically our size is from three to ten million, our first check, but we know we're going to be doing follow-ons”
Goldberg: Earlier startup exits yield better dollar returns, not just IRRs
“If you look at any, certainly our portfolio, almost anyone's portfolio, the earlier the exits, usually the better. Not just from an IRR standpoint, because that's just math, but just from a, just dollar over dollar standpoint as well, when we've looked at that…”
Goldberg: Time Warner Investments does not invest in seed deals
“In reality, we're not typically going super early. So, we're not Doing seed deals.”
Goldberg: Founders should reject special rights like ROFRs from strategic investors
“Ask them if they're going to ask for special rights, like are they asking for a path to control? Are they asking for rights of first offer, rights of first refusal? You don't want to accept any of those things, but those are questions to ask just to make sure.”
Goldberg: Corporate VCs are not ideal lead investors for Series A rounds
“So in my view, I don't think corporates are your best lead investor for a series A. If you do that, then I do think you run into those negative signaling issues when you go out to raise the series B, and people are asking sort of, why do you only have a strate…”
Time Warner Investments typically leads Series B rounds or co-leads Series A
“That's typically what we do. We've also co-led A's, like we could split an A with another financial investor. Do it also, if it makes sense at that stage to bring in a strategic, you know, it depends on where you are, you know, where your company is, even thou…”