Corporate Venture

Robinson Ventures has decades of experience in helping corporations establish corporate venture functions/funds, most often tied to innovation with the company’s strategic plan. If you are interest in talking to us about what it takes to establish a corporate venture fund, please use the Contact Us Link provided below!
Definition: Corporate venturing – also known as corporate venture capital, is the practice of directly
investing corporate funds into external startup companies. This funding is usually done by large capital companies who wish to invest in small, but innovative, startup firms. These companies do so through joint venture (JV) agreements and the acquisition of equity stakes. The investing company may also provide the startup with management and marketing expertise, strategic direction, and/or a line of credit.

There are five modalities of Corporate Venture investing:


1. Early-Stage Financing: Startup companies that can begin operations yet are not at the stage of
commercial production and sales; amounts tends to be small or “sweat equity”.
2. Seed Capital Funding: Initial capital or money used to cover initial operating expenses and to
attract venture capitalists. Amount tends to be small and can be additional “sweat equity."
3. Expansion Financing: Capital provided to expanding portfolio companies through launching new
products, physical plant expansion, product improvement, or marketing. Amounts tend be much
larger and can involve syndication of the opportunity with other investors.
4. Mergers and Acquisitions: This involves financing a startup company’s acquisitions as well as
aligning the startup with a complimentary product or business line that will project a similar
brand for both companies. Amount is large and can be the corporation with the venture fund.
5. Initial Public Offering (IPO): Public offering via a stock market where the Corporate Venture
Fund exits the investment and recapitalizes the parent company/fund.

 

Enterprise innovation architecture

As you can see via the above graphic (credit: Highnote Foundry), a corporate venture function/fund alignment within the company’s culture, board, chief executives, and the operators responsible for the innovation/venture functions.

Excellent articles supporting corporate venturing:

Finally, as presented by CBINSIGHTScorporate venture set consecutive quarterly funding and deal records in H1’21, with a 133% surge year-over-year.

The 2021 Mid-Year Global CVC Report - CB Insights Research

Regardless of the stage of a company, Corporate Venture can start at anytime. Whether it be in a small but ground breaking startup, a matured small business, or somehwere in between; there is never a bad time to start a conversation about Corporate Venture, reach out to us today!