Episode 36
Corporate Venture Arms: Are They Worth It?
Can corporate venture capital arms be of great value to your company?
Venture Capital · Jon Bradshaw, Peter Harris
November 1, 202213m 38s
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Show Notes
Should you take money from a corporate venture arm?
Here are some quick Pros and Cons of doing so:
Pros:
- They can be very strategic in making industry connections (especially with other companies they have invested in
- They can often become a customer themselves
- Bring technical expertise and resources unavailable to early-stage venture companies
Cons:
- Often have conflicting mandates, invest for return and invest in finding acquisitions
- Due to incentives many of the partners at CVC’s leave (which is your internal champion)
- At times there are inferior terms (exclusivity on acquisitions, Right of first refusal, and in the worst case invest to stamp out competition).
- While they could become customers, CVCs are often on an island and don’t speak for the company in becoming a customer
Topics
venture capital