Author: John Glushik

Managing Director John Glushik recently joined a panel with representatives of other corporate VC firms to discuss “Transformational Change and the Path Forward” as part of Global Corporate Venturing’s GCVI Summit. Here we summarize the key take-aways from the event.

Corporate venture investing has matured into a vital tool for driving innovation, extending corporate capabilities, and generating financial returns. But success in this space isn’t guaranteed. Too often, corporate venture arms struggle to balance strategic alignment with entrepreneurial autonomy, or they lack the internal resources needed to turn investments into meaningful partnerships.

It is possible to identify a number of themes across the industry, and lessons that may be applied broadly to any corporate-backed investment program:

Investing Where You Can Truly Add Value

Corporate venture arms often talk about providing “more than capital,” but making that promise a reality requires a clear strategy. The most effective programs focus investments in areas where the parent company can offer something unique—whether that’s industry expertise, infrastructure, distribution networks, or technical resources.

For example, venture groups backed by large industrial or scientific firms can provide startups with access to R&D capabilities, testing facilities, and domain experts that would otherwise be out of reach. This type of engagement not only de-risks investments but also accelerates startup growth in ways that financial capital alone cannot.

The takeaway? Be intentional about where and why you invest—not just to check a strategic box, but to create opportunities for meaningful collaboration. The best innovations are typically driven by the best entrepreneurs.  The best entrepreneurs can choose their investor partners and they will gravitate toward investors who add tangible value and prioritize the success of their portfolio companies.

The Hidden Challenge: Enabling Corporate-Startup Interactions

Many corporate venture programs underestimate the friction involved in connecting startups with business units. Large organizations move at a different pace than startups, and even the best-intentioned investments can stall if there isn’t a clear mechanism for engagement.

One approach that has proven effective is dedicated roles focused on facilitating these interactions. Some venture arms, HG Ventures included, now employ Platform Managers—team members whose primary job is to help portfolio companies navigate the complexities of working with a corporate parent while also advising the corporate partners on how to most effectively engage with entrepreneurs. This structured approach helps ensure that startups can tap into corporate resources without getting lost in internal bureaucracy.

Without this kind of intentional support, even the most promising investments can struggle to generate real impact.

Entrepreneurial Freedom: A Key to Attracting Top Founders

One of the most common pitfalls in corporate venture is exerting too much control over startups. While corporate priorities matter, successful venture programs recognize that entrepreneurs choose their investors carefully—and they tend to avoid those who impose too many constraints.

The best programs take a partnership-first approach, offering value while allowing startups to operate independently. This means:

• No forced commercial agreements that lock startups into suboptimal partnerships;
• Flexible investment terms that align incentives rather than dictating strategy;
• A long-term view that supports growth rather than short-term corporate KPIs.

The best founders have options. Corporate investors that offer flexibility and real support—not just oversight—are the ones that attract the strongest entrepreneurs.

Corporate Stability as an Unrecognized Advantage

Venture firms often focus on agility, but stability can be just as valuable. Corporate-backed investors with a consistent leadership structure and long-term vision can provide startups with reliable, patient capital—a major advantage over investors who may be driven by short-term fund cycles, shifting strategies or frequent leadership turnover.

This stability allows corporate venture arms to:

• Commit to longer-term partnerships rather than being tied to quarterly results;
• Build institutional knowledge, ensuring a more thoughtful approach to investment and portfolio support;
• Maintain strategic consistency, so startups don’t find themselves navigating shifting corporate priorities.

Not every corporate venture group benefits from this kind of stability, but those that do should leverage it as a competitive strength.

Corporate venture investing is at its best when it is structured, consistent, and designed for long-term success. Programs that integrate well with their parent organizations—without restricting entrepreneurs—are the ones that deliver the greatest impact.

As the corporate venture landscape continues to evolve, the most successful investors will be those that recognize venture is more than just writing checks—it’s about building meaningful, value-driven partnerships.

Interested in watching the whole panel? Watch the video here.

 

Battle Motors, a company transforming the heavy-duty commercial vehicle landscape, has a close partnership with HG Ventures. Following a recent visit to the company’s Ohio production facility, HG Ventures Managing Director, John Glushik, explains what makes this opportunity so special.

At HG Ventures, we often talk about investing in people as much as technology, and that has certainly been the case with Battle Motors. When I first met Mike Patterson, Battle Motors’ CEO, he was already a successful serial founder. So, when he approached us with his vision for a new venture, I was immediately interested. The Heritage Group has always bet on people, and Mike exemplifies the kind of leader we want to support. The values and standards that drive him and his team are consistent with how we do things at The Heritage Group, and it was clear early on that this was a great fit.

Mike saw a unique opportunity: take an existing company, an established refuse vehicle manufacturer, and scale it rapidly by introducing new technologies, unmatched reliability and a growth-oriented team. It was an easy decision to invest in Battle Motors in mid-2021, and as part of the deal, I joined the board. The timing couldn’t have been better.

Thoughtful Innovation at the Forefront of the Electrification Revolution

The commercial vehicle industry, and refuse trucks in particular, have been dominated by diesel for decades, and in some areas, there’s been a shift towards compressed natural gas (CNG). However, electrification offers performance-improving technologies for a range of industries. With that in mind, Battle Motors has taken an established vertical in the commercial vehicle space—specifically, refuse trucks—and launched electrified trucks.

You can’t just dive into electrification overnight. It’s an evolution, and at Battle Motors, they’re approaching it thoughtfully. Battle Motors has built a a diverse set of products, so customers can evolve into it as they see fit—whether staying with best-in-class diesel, bringing-in CNG, mixing technologies or going 100% electric.

Refuse trucks are a perfect application for electric commercial vehicles. With known duty cycles and routes, there’s no range anxiety—something that often holds back electric vehicle adoption. You can send out a truck with a battery that lasts 100 miles on a 20-mile route, and you’ll never have to worry about charging. This predictability also makes it easy for fleet managers to calculate ROI on a vehicle-by-vehicle basis, further strengthening the case for electrification.

Battle Motors’ growth tear isn’t stopping with just refuse trucks, and the company is rapidly expanding into a wide range of heavy-duty commercial vehicles.

Leveraging Existing Relationships

One of the smartest moves Mike made was acquiring and transforming an existing business with established customer relationships, rather than starting from scratch. Battle Motors is the evolution of Crane Carrier Company, a legacy business that had been operating for decades. Through Crane Carrier, Battle Motors already had relationships with most of the major municipalities in the U.S. who were buying diesel trucks along with an established dealer network.

By leveraging these existing relationships, Battle Motors has quickly positioned itself in front of major cities and waste management companies across the country. This has been a key factor in accelerating the company’s growth and ability to gain traction in the market.

A Worthy Investment

The company has expanded the existing Ohio plant and increased production capacity by more than 8X since our original investment, and touring the facility recently was truly exciting. For us, the ideal investment prospect combines many factors, and Battle Motors hits on all of them. It’s a company that embodies what we look achieve with an investment by HG Ventures.

We focus on helping companies with tangible value, and Battle Motors is a prime example of putting that in place. We combine significant venture capital experience—helping build teams, serving as trusted Board members, and helping companies navigate growth challenges—with the unique value that The Heritage Group brings: decades of market expertise, technical knowledge, and strong relationships in key markets.

I’m incredibly honored to be part of a transformation that is set to revolutionize an industry to be more productive and sustainable. I am confident that Battle Motors’ dramatic growth in the commercial vehicle sector will have significant long-term impact, and I am proud we can play a role in that success.

With 25 years’ experience in the world of venture capital, HG Ventures’ Managing Director John Glushik has witnessed a wide range of investor behavior. Here John shares his perspective on what makes a good investor partner, and how his team applies this philosophy at HG Ventures.

The relationship between startup founders, executives and investors is an extremely important one, and, like any relationship, it requires an aligned set of values, mutual respect, empathy and understanding, give and take, and clear boundaries to be successful.

It sounds simple enough, yet I often see examples where there is a power imbalance, friction or antagonism, and on occasion a complete breakdown in the relationship. How does that happen? And how can it be avoided, by entrepreneurs and investors alike?

The Anatomy of a Good Venture Capital Investor

These four key attributes represent my own perspective and are by no means exhaustive, but they serve me and our portfolio companies well:

• Mutual Respect and Appreciation: The venture capital industry would not exist without entrepreneurs. Too often, investors treat founders like they are subordinates, with an attitude and expectation that they must “grovel” for capital and adapt to whatever process the investor requires. Our team is intentional with our values and standards which include showing respect and supporting entrepreneurs regardless of the ultimate investment decision. We also adapt our process to theirs whenever possible.
• Alignment of Vision and Values: A successful partnership begins with shared objectives. A good venture investor aligns their vision with that of the entrepreneur so that collaboration can most effectively propel the company forward. An understanding–and sharing–of an entrepreneur’s mission, values, and long-term goals are essential for establishing a foundation for partnership.
• Accessible and Approachable: Accessibility breeds trust. A good investor remains approachable, fostering an open line of communication with founders and executive teams, and not limiting contact to the confines of a quarterly Board meeting. This transparency not only nurtures a strong working relationship but also ensures that challenges are addressed promptly, fostering a culture of continuous improvement.
• Partnership Beyond the Check: More than just financial backers, good venture investors serve as partners. Being a startup founder can be a lonely position, and the value that a good investor should be much greater than just writing a check. Good investors actively participate in the growth journey of the companies in which they invest, offering strategic guidance, leveraging their networks and suggesting solutions, as opposed to just raising issues or concerns. At HG Ventures, we are always asking ourselves how we can help tackle challenges and how we can add tangible value for our portfolio companies.

What Entrepreneurs Should Look For

If we think of the investor-founder dynamic as a relationship, then it is a pretty unusual one. In no other sphere would one make such an important, long-term commitment after relatively limited interaction.

So what should a startup’s executive team be looking for in an investor?

• Proven Track Record: Entrepreneurs should scrutinize the track record of a would-be investor. A successful investor will be able to demonstrate not just a track record of guiding companies to successful exits, but also a history of nurturing companies through various stages of growth, through the tough times as well as the good ones. Look for those who have a knack for identifying both challenges and opportunities, and ultimately delivering on promises.
• Understanding of the Industry: A good investor should have a good grasp of the founder’s industry; but a word of warning here: It is not possible for us to be an expert in every field in which we invest. We are full-time investors, that is our area of expertise. So while entrepreneurs should ideally seek partners who possess some understanding of their sector, investors and founders alike also need the humility to recognize and appreciate their strengths and weaknesses. At HG Ventures, we provide industry expertise through our colleagues within The Heritage Group. They can deliver unique market and technology knowhow to our portfolio companies.
• Value Beyond Valuation: The size of the check or the valuation should not be the sole driver of the choice of investor. The founder’s journey can be long and difficult, and the financial aspect of the partnership is just the start. Further down the road, a founder is going to need advice, empathy, and sometimes someone to deliver some tough love. That’s where the real value comes in. There is a practical aspect to this, too: What value can the investor deliver by way of their network and relationships? This is a core part of our value proposition at HG Ventures: Our starting point is always to ask: “How can we help?” In the recent past that help has taken the form of giving startups access to the research and development resources of The Heritage Group, and introductions to The Heritage Group’s operating companies to test product-market fit and develop go-to-market strategies.

The Investor’s Covenant

Beyond the boardroom, a good investor is an advocate for founders. It is the investor’s responsibility to champion the entrepreneur’s vision, ensuring that the company stays true to its core values while navigating the challenges of growth.

Understanding the delicate balance of Board dynamics is vital. A good investor must be flexible, navigating Board dynamics, and support management teams while also holding them accountable and focusing on increasing value for all stakeholders.

Investing is not a sprint; it’s a marathon. A good venture investor is committed to the long-term success of the companies in their portfolio. This commitment extends well beyond the initial investment, with an unwavering dedication to seeing the venture thrive.

The following post is an excerpt from HG Ventures’ Future of Roads Report (November 2023) – An Introduction by John Glushik

I am fortunate that my chosen career brings me into contact with scientists, engineers and other visionaries who are working at the leading edges of their respective fields, developing new technologies that have the potential to transform our world for the better.

Whether they are working in materials science, chemical engineering, electrical engineering, software development or any one of a dozen other fields, these entrepreneurs are designing and building new systems and processes that not only keep industries, and therefore our economy, moving, but do so in ways that reduce or minimize our impact on the environment.

One of the areas in which we see a lot of exciting innovation is road technology.

Roads are an essential part of our infrastructure. Whatever else may change about our world in the next half-century, the need to move goods and people from point A to point B, and to connect communities, will be a constant. But with more people in the world, and more vehicles using our roads, that infrastructure is under intense pressure.

This is where technological innovation has a role to play.

Across the United States and throughout the world, we see examples of new technologies emerging that can solve challenges around capacity, congestion, safety, sustainability and more.

This report collects together some of the key technologies that are being developed, piloted, and in some cases implemented, that have the power to keep our roads moving.

This is such a wide-ranging field that there are limits on what we are able to include. For example, the United States has more than four million miles of road, the highest level of vehicle ownership in the world, and challenges maintaining a uniformly high quality road infrastructure, so much of the content of this report is inevitably weighted towards the US, but there is an enormous amount of important work happening all over the world.

And in many instances, the real innovation is taking place not in the R&D centers of established technology giants, but in the tiny laboratories and rented offices of startups. This is what excites me the most: That the potential for positive change can be fueled by individuals and small teams with a singular vision.

At HG Ventures, we are proud to back this spirit of innovation, and have invested in a number of startups working in this field. Indeed, as part of The Heritage Group, which has a diverse set of heavy-duty construction and materials operating businesses, we work alongside colleagues with unsurpassed knowledge and expertise of road building and maintenance. The Heritage Group has decades of experience in this market, and customers that have relied on them to help them innovate, and I appreciate being part of that.

I believe that the required transformation of our roads infrastructure will only be possible with an increased and expanded vision of public-private partnerships, and that venture capital has a vital role to play in this – enabling those entrepreneurs to bring their concepts to market and become part of the mix of solutions that will keep us all moving.

I hope you enjoy this report and that it contributes to the ongoing conversation about the future of roads.

Click here to download HG Ventures’ Future of Roads Report.