Learn more about Corporate Venture Capital and how this investment has been growing in recent years, reaching a historic increase of US$ 169.3 billion in 2021.
Maintaining a leadership position for organizations has become increasingly difficult. In this context, discussions about building new businesses, new technologies and innovative solutions have gained ground in the entrepreneurial ecosystem. The market offers a range of investment options for innovation and has indicated a prosperous direction for CVC. Given this growth path, talking about Corporate Venture Capital has become a topic among investors who have the responsibility of understanding the context that leads to the emergence of this tool and identifying whether it is the right direction for the corporation.
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What does Corporate Venture Capital (CVC) mean?
Corporate Venture Capital is an Open middle east mobile number list model with a strategic objective. It is a way that companies have sought to connect the need for innovation with entrepreneurs who already have knowledge of the market and know how to apply these resources to promote growth. Although always welcome, obtaining a financial return may not be the main objective. The development of innovation policies, access to technologies and the disruptive visibility that CVC provides are seen as the great gains for companies that adopt this innovation strategy.
In recent years, large corporations have felt pressure due to the market’s tendency to accept digital innovation solutions, which have gained momentum with the emergence of startups. These small companies, often still in their early stages, have come up with new business models, products and even services.
By identifying the growing movement of these small businesses and mapping the potential risk to their own segment, corporations began to view the dynamics of incorporating startups into corporate operations favorably. The result of this process was the promotion of the creation, as we see today, of corporate funds intended for investments in new businesses, the so-called CVC fund.
Context: how CVC has operated in the market
Some people consider the Corporate hold the right meeting Capital structure to be a new concept, but in his literature, entrepreneurship professor Gary Dushnitsky creates a timeline and places the beginning of CVC in 1960, as a reflection of the Great Depression (1929), added to the effects of the Second World War (1939-1945).
Since then, this business innovation tool has undergone major transformations, in line with market needs. Each major milestone was named by Gary as a Wave. According to some experts who continued the studies conducted by the professor, the market is swimming in the Fifth Wave of CVC, marked by more structured strategic models.
In the national context, companies operating in retail
Financial services are the ones that most cnb directory this innovation model. According to the survey carried out by Bain Innovation Exchange , in 2021, approximately 22 companies in these industries opted for CVC.
According to the same study, compared to the United States market, despite Brazil having a drastically low investment value, in comparison, the growth rate manages to be 7% higher.Although strategic purposes are rooted in the objective of this corporate fund. Data shows how it is still under pressure to deliver results quickly. The survey shows that only 10% of respondents expect long-term returns from the CVC. Compare to an alarming 75% who believe that the return will be in the short term.