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Roles & People

Corporate Venture Capital

Investment arms of large corporations that invest in startups for both strategic and financial returns.

Corporate venture capital (CVC) refers to direct minority equity investments made by large corporations into external startup companies. CVCs invest for strategic reasons (access to innovation, potential acquisitions, market intelligence) alongside financial returns. They can be powerful partners providing distribution, technical resources, and credibility, but may also create conflicts if the parent company is a potential competitor or acquirer.

In Practice

Google Ventures (GV), Intel Capital, and Salesforce Ventures are major CVCs. GV invested in Uber and Slack, providing both capital and access to Google's technical infrastructure and talent network.

Why It Matters

CVC participation can validate a startup's technology and provide strategic advantages, but founders should carefully evaluate whether the corporate relationship creates competitive conflicts or limits future exit options.

Related Concepts

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