corporate-venture-capital

Vocabulary Word

Definition

Corporate venture capital (CVC) refers to investments made by established corporations in innovative startups or small companies. Think of it as a big fish helping a smaller one grow.

Examples in Different Contexts

In corporate venture capital, partnerships between established corporations and startups can lead to collaborative innovations and new market opportunities. A business development manager might explain, 'Through CVC, we foster partnerships that drive technological advancements and open new channels for growth.'

Practice Scenarios

Finance

Scenario:

We're exploring opportunities to diversify our investment portfolio. There are promising fintech startups emerging in the market.

Response:

Investing in them through corporate venture capital could provide both financial returns and strategic insights into digital efficiency.

Business

Scenario:

Our company needs to update its innovation strategy. A more proactive approach could include establishing ties with emerging companies.

Response:

Yes, perhaps adopting a corporate venture capital approach could help identify and invest in promising ventures within the field.