Types of Corporate VC Funding

Types of Corporate VC Funding

June 11, 2021 by investor

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

Corporate VC funding continues to grow as companies look for innovation and startups look for funding opportunities.

There are several types of corporate VC funds. Here are three:

1. Traditional investment fund 

– This fund looks and acts like a traditional VC fund. 
– They’ve set up a fund for the program and source and diligence deals similar to a traditional VC fund.
– They invest for financial reasons and can primarily provide management support.

2. Strategic investment fund

– They invest off the balance sheet and for strategic purposes.
– They don’t look for a financial return but rather collaborations.
– The team is small but works full time on the fund.
– They invest not only financial resources but also strategic ones such as partnerships and sales channel access.

3. Opportunity investment fund

– They often invest off the balance sheet and invest solely for specific projects.
– The team is not full-time and consists of members from various departments.
– They are typically product-focused and seek the investment to fill a product need.
– They provide limited strategic and financial support. 

Make sure the type of corporate VC matches the needs of your startup.

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.

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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.