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FREE online courses on Venture Capital Funding - The Venture Capital
Industry - Corporate venturing |
One form of investing that was popular in the 1980s and has
caught on again is “corporate venturing”. This is usually called “direct
investing” in portfolio companies by venture capital programs or subsidiaries of
non-financial corporations. These investment vehicles seek to find qualified
investment opportunities that are congruent with the parent company's strategic
technology or that provide synergy or cost savings.
Corporate venture programs usually invest their parent's
capital while other venture investment vehicles invest outside investors'
capital. Some venture firms specialize in
advising, consulting and managing a corporation's venturing program.