How a Corporate VC Works

How a Corporate VC Works

May 31, 2021 by investor

Corporate venture capital is an existing business utilizing venture funding to further the company’s strategic objectives.

The firm takes an equity stake in startups either through an internal fund or off the corporate balance sheet. 

Unlike traditional venture capital, corporate VCs look to gain a competitive advantage for the company and not a financial return.

The firm seeks to grow their business and uses an investment into a startup to gain knowledge of an emerging market, identify key players in the industry, and potentially use the results to grow sales. 

These initial investments often lead to a buyout of the startup.

The investment is a useful tool for diligencing a startup and influencing its direction.

There are some corporate VCs investing for a return on investment rather than strategic initiatives, but this is rare.

Most corporate VCs make investments with the goal of winning more business for their current product and services.

It’s a useful method for exploring new markets without committing substantial resources from the corporation.


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.

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

For more episodes from Investor Connect, please visit the site at: 

Check out our other podcasts here: 
For Investors check out: 
For Startups check out: 
For eGuides check out: 
For upcoming Events, check out 

For Feedback please contact  

Music courtesy of Bensound

Copyright (c) 2021, Hall Martin and All rights reserved.

Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.