Venture capital has now seen a different trend flourishing. It is the act of large corporations, making equity investments on startups. This is known as Corporate Venture Capital (CVC). In 2018 alone, this market increased by thirty- five percent. The number of deals increased by 32 percent and the share of investment rose by nearly half at forty seven percent, as per business intelligence provided by the research wing of the MIT Sloan. Among the corporations that have invested in these CVCs include the likes of Unilever, Novartis, Robert Bosch, Airbus, Mitsubishi and Johnson & Johnson. Unfortunately, in spite of a lot of positivity at the start of each such investment, a number of these falter after some time. There are several reasons for the long- run failures. One is the lack of balance between the traditional venture capital and this new trend. A lot of the risks are caused due to a “stuck in the middle” syndrome.

Source:https://sloanreview.mit.edu/article/making-corporate-venture-capital-work/

Uploaded Date:26 June 2019