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

Corporate venture capital (CVC) is the investment of corporate funds directly in external startup companies. A CVC manager might say, 'Our corporate venture capital initiatives aim to support innovative startups that align with our strategic goals, offering both financial returns and strategic benefits.'

Practice Scenarios

Startups

Scenario:

Our current funding is great, but we need more than just financial support. It would be helpful to gain access to a strong industry network.

Response:

Absolutely. A corporate venture capital partnership could provide us with both funding and crucial industry knowledge.

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.