Corporate Venturing
Corporate Venturing Meaning:
In venture capital terminology, the term Corporate Venturing refers to the investment technique employed by corporations to finance other smaller companies by acquiring an equity stake in them.
In venture capital terminology, the term Corporate Venturing refers to the investment technique employed by corporations to finance other smaller companies by acquiring an equity stake in them.
For example, a Corporate Venturing situation would typically involve a corporation investing in a smaller corporation by setting up a separate fund specifically designed to invest in the growth and startup sector, much like a traditional venture capital company would do. Also, investments can be made indirectly through trusts and other venture capital companies. Corporate Venturing can also consist of alliances of a technical nature in which a larger company provides technology to a smaller company or assists in the development of new products. This type of Corporate Venturing requires no capital investment or equity participation.