Considering corporate investment for your company? If so, you’re not alone. Last year, the combined value of corporate venture capital financing hit $64.9 billion. That’s a ten-year high and a sign that companies are doubling down on startup investments in pursuit of innovation.
Still, knowing whether a corporate investment is right for you and your company takes some careful consideration.
Understanding corporate venture capital
While corporate VC is a subset of venture capital, they are not the same. Corporate VC investments typically leverage the company’s balance sheet to make direct equity investments, rather than investing through a fund. Additionally, the corporation usually offers a range of other strategic opportunities for the startup beyond cash, including accelerator-like mentorship and guidance, access to certain tech or business development resources , and even the potential to become one of the startup’s all-important initial or marquee customers.
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