Corporate venture capital (CVC)

Investment by an established company, usually through a dedicated unit, into external startups for strategic and financial reasons.

Example

A carmaker's venture arm investing in a battery technology startup.

Important

Support can change when the parent company's strategy changes.

Related terms

  • Strategic investor — An investor, usually a company, whose motives for investing include business benefits such as technology access, distribution or future acquisition, not only financial return.

Lessons that explain it

  • A corporate investor may want the company more than the return — Corporate venture arms and strategic investors put money into companies for strategic reasons as well as financial ones, which can bring distribution and credibility - and conflicts. (9 min)

All 578 terms in the Investing glossary