Private company governance risks pushing institutional investors to use strict guidelines
As an active investor, CPP Investments is leveraging its influence in the venture capital space to ensure it finds the right companies to invest in.
“I think founders know [what] they’re getting into with us,” said Jinzi Zheng, managing director of portfolio value creation at CPP Investments, during a panel discussion at the University of Toronto’s Rotman School of Management last week. “We have a set of non-negotiables or guidelines [and] we’re upfront about that. . . . We do invest based on how much we believe in the founder.”
The investment organization invests in VC through a combination of funds and direct investments, but it doesn’t participate in early-stage VC investing as part of its deployment in the private sector, she said, noting companies that don’t meet comprehensive reporting requirements won’t get a deal.
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