SC Capital Access
Corporate Venture Capital
Corporate Venture Capital (CVC) is "the investment of corporate funds directly in external start-up companies. CVC is the practice where a large firm takes an equity stake in a small but inovative or specialist firm, to which it may also provide management and marketing expertise; the objective is to gain a specific competitive advantage."
CVC is not the same as a Venture Capital. It is a subset of venture capital, in which a company is investing, without using a third party investment firm, in an external start-up that it does not own.
The Breakdown
Summary:
Corporate Venture Capital is the investment of corporate funds directly to external start-up companies. These funds are often used in place of or to support the research and development departments of corporations.
Pros:
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provide a lot of support, both in expertise and finances, to the ventures they fund
Cons:
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Conflict of business interests
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Slower business than traditional VC
Who Qualifies:
The qualifications for receiving investment from corporate venture capital funds vary by each individual corporation. The likeliness of a business receiving this investment depends wholly on whether or not the corporation believes that they have a product or service relevant and beneficial to their business.
partnerships are typically formed on an individual basis and eligibility is determined by the mutual benefits that each partner provides.
