Corporate Venture Capital funds or CVC funds are investment vehicles of large companies that actively invest in startups, mostly directly, but sometimes through VC firms. A few global examples of CVCs include Intel, Google, Microsoft, Meta, among others. In India too, the space is slowly but steadily seeing increased participation. “CVC concept is new to India. Large corporates are not used to taking bets on early-stage startups and partnering with founders who are working on ideas that have the potential to disrupt existing business models. However, that is fast changing,” said Yagnesh Sanghrajka, co-founder and CFO, 100X.VC.
From what is observed globally and in India so far, these corporates have a separate team that runs the CVC independently and adopts the best practices of Venture Capital. Further, CVC investment is a win-win for both corporates and startups. While it gives large companies an additional revenue stream, it gives startups access to the vast network of the company and mentorship of corporate leaders.
THE BENEFITS OF STARTUP INVESTING: Investing in startups is a long-term strategy that allows corporations to tap into innovative ideas and gain early access to emerging technologies. “The startups can disrupt their industries, become potential future competitors, or allow the corporation to expand in new sectors. This allows corporations to diversify their portfolios and potentially achieve financial returns in the long-term,” said Rohan Joseph, Vice President, head of Global Investments and Corporate, Times Bridge & The Times Group. According to Joseph, 20% of all startup funding deals in India now involve a corporate investor or a family office fund.
Denne historien er fra October 2023-utgaven av Entrepreneur magazine.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra October 2023-utgaven av Entrepreneur magazine.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Data Breach Drama: When Trust Turns Costly In A Digital Age
Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?
THE TERRAIN TAMER
Spearheading a California-based, Series D SaaS company is no easy feat. It requires a blend of ownership, innovation, and the ability to handle stress. But Anand Jain, co-founder and chief product officer of Clever Tap, finds his calm by escaping to rough terrain whenever he gets the chance-be it India or Colombia.
THE INTELLIGENT READS
Hardika Shah founded Kinara Capital in 2011 with the mission to address the acute credit gap in the micro-small-medium-enterprises (MSME) sector in India, by providing fast and flexible business capital to small business entrepreneurs. Despite operating in highly competitive and tough market of collateral free loans, Kinara Capital has been steadily growing in Hardika's leadership. In conversation with Entrepreneur, Hardika shares insights on her favourite books.
THE CURSE OF GROWING TOO FAST
FAIRE is a platform for small businesses, but it grew big the wrong way-almost becoming a $12 billion wreck. Here's how it fixed the problem, and why you should think twice before skyrocketing.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\"
HOW TO ASK FAMILY FOR MONEY
Your friends-and-family fundraising round doesn't have to be scary and awkward. Here's advice from one of the world's leading investors.
Give Yourself the Gift of Time
Happy holidays! Emmy Award-winning tech expert Mario Armstrong has five recs to get more hours in the day.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humility-and it changed the way I relate to clients.
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
