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.