Corporate Venture Capital
Corporate Venture Capital (CVC) is the investment of corporate funds directly into a small, but innovative or specialized company, which can also be provided with management and marketing expertise; the objective is to obtain a specific competitive advantage or anticipate the future of the industry, investing in future competition.
An investment made through an external fund managed by a third party, even when the investment vehicle is financed by a single investment company, is NOT considered CVC, the CVC has to be managed within the company.
Most importantly, CVC is not synonymous with venture capital (VC); rather, it is a specific subset of venture capital. In essence, Corporate Venturing is about establishing structural collaborations with companies or external parties to drive mutual growth. These companies are startups or growing companies.
Benefits for the Company
Adopt and scale emerging technologies.
Transfer of knowledge (ways of doing) and energy.
Innovation from the first source.
Bet on Exit
Benefits for the Startup
Early validation of Market fit.
Greater chance of success over time
Fresh and consistent capital.
Accelerated opening to the market.