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Corporate VCs - Working With Them

Published: 3/21/2007 1:47:58 PM

Here's a great article on the topic of corporate venture capital. 

Written by an industry veteran, it highlights some of the pros, cons and differences in dealing with the corporate side of venture capital.

In my experience with corporate VCs, which has been limited, they've tended to be tough to reconcile with typical venture capital in the same deal.  In other words, a corporate VC may have other goals than a VC or private investor has.  The corporate VC may want to develop the investee company product as part of a long-standing research program, with no hurry or rush to go to market.  A VC investment will typically want to hurry to a profitable exit.

Add to that the risk that a start up's corporate sponsor may leave the department, the company may change its priorities or other circumstances outside the control of the start up, and you have a number of additional uncertainties involved with a corporate VC investment.

Don Jones

www.VentureDeal.com

 

Don Jones
CEO, VentureDeal

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