What is corporate venture capital?

Corporate venture capital is startup investing by operating companies — either from the balance sheet or through a dedicated fund. CVCs invest for financial return plus strategic insight: early visibility into technologies and markets adjacent to the parent.

For founders, CVC money can carry distribution, credibility, and partnership — and risks: strategic investors may have information rights competitors fear, slower processes, and priorities that shift with the parent's strategy. Terms that limit the strategic's rights in an acquisition of the company matter.