Case Number: 7-115-001, Year Published: 2015
HBS Number: KEL893
Competitive strategy, Corporate strategy, Entrepreneurial finance, Financial strategy, Growth strategy, Innovation, Technology management, Venture capital
This technical note provides a history and context for corporate venture capital (CVC) investment, or the practice of corporations making equity investments in startup companies outside their core business. The note outlines the growth of CVC, from its inception in the 1960s through its maturation today, and explores companies' motivations for making these types of investments, which typically involve a combination of both financial and strategic goals. In addition, the note explores how CVC units within companies are structured, how they evaluate and finance investment opportunities, and how they generate business value for the parent company.
After students have analyzed the technical note, they will be able to:
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