9 min listen
Corporate Venture Arms: Are They Worth It?
FromVenture Capital
ratings:
Length:
14 minutes
Released:
Nov 1, 2022
Format:
Podcast episode
Description
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
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
Released:
Nov 1, 2022
Format:
Podcast episode
Titles in the series (82)
How Do I Invest in Venture Capital Funds? (Episode #5): Learn About the Risks and How to Invest in a VC Fund by Venture Capital