Corporate Venture Arms: Are They Worth It?

Should you take money from a corporate venture arm? Here are some quick Pros and Cons of doing so:Pros: They can be very strategic in making industry connections (especially with other companies they have invested in They can often become a customer themselves Bring technical expertise and resources unavailable to early-stage venture companies Cons: Often have conflicting mandates, invest for return and invest in finding acquisitions Due to incentives many of the partners at CVC’s leave (which is your internal champion) At times there are inferior terms (exclusivity on acquisitions, Right of first refusal, and in the worst case invest to stamp out competition). While they could become customers, CVCs are often on an island and don’t speak for the company in becoming a customer