Startup Funding Espresso -- Purpose of Corporate Venture Capital

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Corporate venture capital is venture funding from a company, rather than a fund raised from limited partners. Most corporate venture capital invests for strategic reasons rather than financial ones. Reasons for corporations to invest in startups include the following: - Gain market insight through their startup portfolio companies - many companies want a front-row seat on how an emerging market is developing. - Access to new research and business models - this can support research and development as well as business development. - Provide a flow of new customers for the corporate investor - investing in companies gives the corporate VC leverage for selling their products. - Identify new talent for future projects in the space - as the market matures, the corporate VC may want to enter the market with their own products, and having the talent to build and sell those products can be quite valuable. - Build a relationship with potential acquisition targets - some corporations use M&A to gain access to a market and investing in early-stage companies is one path to acquisition. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let's go startup something today.___________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Music courtesy of Bensound