Corporate Venturing



Corporate Venturing

Thesis Statement

This essay focuses on the benefits and outcomes of establishing corporate venturing department, the results either lucrative or not and mature corporation benefits of engaging in corporate venturing.

Introduction

Corporate Venturing is a topic of interest for many practitioners and academians. The interest is made so that, instead of development of current competencies by large firms they should engage in the creation of new opportunities. As a business development strategy, the concept of corporate venturing was introduced in 1960s. The basic idea of venturing is to use reciprocality in creating new opportunities by small firms and to make use of existing competencies by a large firm. Corporate Venturing refers to when a company supports innovation and new projects internally. Corporate venturing most elemental form can be a financial investment with a much mature company taking an equal stake in a small company. This can be done in a way that separate fund or investment to be set or put into a separate account for investing for startup and growth companies, just like a traditional venture traditional capital firm would. Other venture capital trusts or funds would make this investment indirect. When the company floats on the stock exchange, the much mature firm will hope to return its investment.

The existence of corporate venturing exists for many years from now in the US and UK, and many of the large renowned companies have venture capital fund. High-growth sectors like IT, medical are appealed to corporate venturing. Flexible and small companies in sectors like there can revolutionize the market and can challenge with the latest technology.

Discussion

The benefits of corporate venturing in an organization may enhance the organizational work behavior in many ways. The effects may include the change in organizational learning, innovation management; these are in ...