Corporate Venture Capital

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since April 2011.

since April 2011.

From September 2007 to April 2009, the financial services industry dominated the headlines and had a disproportionate impact on the world we live in. Given the profound effect that the financial services industry has on all areas of the global economy, it is important to understand this industry. This page is devoted to one particular area, corporate venture capital (CVC), sometimes called corporate venturing. It serves as a CVC Guide covering the following three topics: 1) define CVC; 2) discuss how CVC is utilized in healthcare and technology; and 3) describe the process of soliciting CVC.

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1 CVC Defined

2 Investing and Financing

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2.1 Types of Investing

2.2 Stages of Financing

2.3 Financing Process

3 Corporate Venture Capital in the Healthcare Industry

o o o o o o o o o      

3.1 Introduction

3.2 Structure of Healthcare CVCs

3.3 Types of investments

3.4 Reasons for Investing

3.5 Current Trends & Future Predictions

3.6 Sectors with CVC Investments

3.7 Venture Capital Company Products in the Life Sciences

3.8 Examples of Companies with Corporate Venture Capital divisions

3.9 Investment Criteria By Provider Corporate Venture Capital (Ascension Health example)

4 Corporate Venture Capital in Information and Communication Technology Companies

5 Corporate Venture Capital in the Utilities Sector, including Telecom Operators

6 Corporate Venture Capital in the Media Sector

7 Corporate Venture Capital in the Energy and Clean-Tech Sector

8 Corporate Venture Capital in the Financial Sector

9 Corporate Venture Capital in the Transport and Logistics Sector

the CVC parent company may attempt to acquire the new venture. is not considered CVC. this may eventually result in rewards to the initial investor. Dell Computer's inhouse VC division. CVC investments also have financial objectives. or brand. or service its products. its strong balance sheet. He gives the example of Dell Ventures. For example. whereby a company invests in a new internal venture that is distinct from its core business. investments that are considered ―corporate venturing‖. sell. the corporation can then evaluate whether and how to adapt its own processes to be more like those of the start-up. In essence. As Henry Chesbrough.[1] CVC is defined by the Business Dictionary as the "practice where a large firm takes an equity stake in a small but innovative or specialist firm. the parent company seeks to do as well as if not better than private VC investors. [edit]Investing and Financing [edit]Types of Investing . to which it may also provide management and marketing expertise. it is best to think of CVC as a subset a venture capital whereby a company is investing.  10 Corporate Venture Capital Professional Organizations 11 References [edit]CVC Defined Corporate venture capital (CVC) is the investment of corporate funds directly in external start-up companies. a start-up with strong links to the investing company might make use of that company's manufacturing plants. and 2) the degree to which the operations of the start up and investing company are connected. This should come as no surprise. The CVC division often believes it has a competitive advantage over private VC firms due to what it considers to be superior knowledge of markets and technologies. [1] The second hallmark of corporate VC investments is the extent to which companies in the investment portfolio are linked to the investing company's current operational abilities. it is a specific subset of venture capital. CVC investments are strategic when they are made primarily to increase the sales and profits of the corporation's own businesses.[1] Most importantly. the primary motivation for the investments was the opportunity to earn high financial returns. Also. and its ability to be a patient investor. CVC is not synonymous with venture capital. hence the motivation to keep its VC efforts "in house". Housing these capabilities in a separate legal entity can insulate them from internal efforts to undermine them. For example. An external venture may offer the investing company an opportunity to build new and different capabilities—ones that could threaten the viability of current corporate capabilities. distribution channels. A company making a strategic investment seeks to identify commonalities between itself and a new venture. Specifically for CVC. former professor at Harvard Business School. Although Dell hoped the seed money will help its own business grow. rather. If the venture and its processes fare well. It might adopt the investing company's business practices to build. technology. An investment made through an external fund managed by a third party. seeing as the primary motivation for venture capital is to ensure as high of a return to its investors as possible. the objective is to gain a specific competitive advantage. CVC is unique from private VC in that it commonly strives to advance both strategic and financial objectives. but remains legally part of the company. even when the investment vehicle is funded by a single investing company. in an external start-up that it does not own. [1] Chesbrough points out that a company's brand may signal the quality of the start-up to other investors and potential customers. A strategic objective is usually "externally focused and can be considered anything that benefits the firm outside of traditional investment returns".[2] The definition of CVC often becomes clearer by explaining what it is not. CVC has two hallmarks: 1) its objective. is not CVC. which made multiple Internet investments with the expectation of earning favorable returns. without using a third party investment firm. In addition to strategic objectives. a large pharmaceutical company's CVC division may invest in a biochemical start up that it believes will produce a key element that the pharmaceutical company will be able to utilize in its own products. explains in his "Making Sense of Corporate Venture Capital" article. Although it happens far less than commonly thought.

Emergent investments are initially made for financial gains but could ultimately result in strategic gains as well. Each phase has its own financing requirements and CVCs will often indicate the stage of financing needed and the type of investments they prefer to make. but in this case they are not linked closely with the investing company’s operations. they should be left untouched to generate whatever financial returns possible. The thought process is that a tight link is not necessary for a successful investment to help the investing company to succeed. marketing. the idea is to take advantage of complementary products.[3] A. Investment money can use be used at this time to construct a working prototype. Emergent investments allow investing companies to explore new untapped markets that they are unable to enter due to their focus on the current markets they serve.‖ [1] D. passive investments are not very practical or advantageous. [1] C. Startup financing can be used to establishmanagement. the investment could become strategically valuable. Later stages of financing usually mean less risky investments and thus investment in these companies typically cost more money due to higher company or product valuations. If the business environment or company’s strategy changes. these investments do not help the investing company to actively advance their own business and can only provide financial returns. This would not be useful in dealing with already disruptive strategies in place. On the contrary. An extension of early-stage financing is First-Stage Financing. they do link tightly with the investing company’s operations. The CVC looks for key growth areas within the startup companies and then hopes to combine them with the company’s initiatives. Although this may seem counterintuitive. research and development. Early-Stage Financing In this stage. A.four distinct investment strategies can be outlined. Additionally. The limits of enabling investments are that they will only be successful if they ―capture a substantial portion of the market growth they stimulate‖. The purpose of this investing option is to advance the strategy of the current business. In summary. Investment products can be sold in new markets to help gather vital information that could not be otherwise obtained. This design helps create a sort of option strategy that is independent of financial returns. On the other hand. Emergent Investments While Emergent investments do not promote current strategies. where companies can start manufacturing and sales processes to initiate a product launch. the company could look to shift towards this new direction. Capital is used to carry out market research and product development. and quality management teams and buy additional equipment and resources. Essentially. Appropriately selected investing and alignment can benefit the investing company by furthering the corporate strategy. Thus. The startup is still shaping its concept and production and service are not yet developed fully. this could result in failure. Thus. if CVCs are looking to ―transcend current strategies and processes. If the information looks promising.‖ [1] they would need to look to other investing strategies. if they do not prove to be important for the company strategy. Investing in startup companies hope to provide CVCs with a return on investment within 4–7 years whereas investments in established companies are expected in a shorter 2-4 year period. the startup company basically has a concept. Driving Investments Driving investments are pursued by CVCs for strategic alignment that is tightly linked between the investment company’s operations and the startup company that is being invested in. passive investments are no different than typical investments whose financial returns are contingent on the volatility of the private equity market. [1] B. Passive Investments Passive investments are neither connected to the investing company’s strategy nor their operations. the funds can be used to further market research and legal issues such as .By combining the two dimensions of CVC investing . the popularity of the investments will help to create demand for the investing company’s products by stimulating the industry in which the products are used.strategic and financial objectives . Due to the lack of any strategic advantages with this kind of investing. Ideally. Enabling Investments Enabling investments are also made for strategic purpose. [3] B. or in finding new ones when the investing company needs to update processes when trying to keep up with a changing environment.[1] [edit]Stages of Financing Corporate venture capital firms provide funding to startup companies during various phases of development. Closely linked investments essentially roll into the current strategy in place. Enabling investments complement the strategy of the current business. Seed Capital Funds This phase finances early stage companies. emergent investments require ―balancing financial discipline and strategic potential.

causing venture capital firms to look towards mergers and acquisitions. breaking even or even turning a profit. CVCs can have more financing stages or even less. they will look to determine the value of the startup. a purchase price and investor equity is agree on. sales. it is called an Initial Public Offering. Companies are often not making profits at this timer and thus funds can also be used to cover negative cash flow. Using the capital gains. marketing. Mergers are similar to acquisitions. and possibly even additional products. plants.[3] D. Acquisitions could also work in the opposite direction where an invested startup is acquired by another firm. [3] C. a venture capital may agree to $5 million during this phase. If the reviewed business plan generates interest. In this stage. . Rather the two companies are combining to share resources. 3) If the CVCs are interested in the proposed startups product or service. market. Investors will also conduct their own due diligence to investigate and better understand the product. market positioning and sharing burdens such as fund raising. This may be completed by venture capital firms to align their startup with a complimentary product or business line where the combined companies look to assimilate smoothly. which it hopes to leverage for several advantages such as cost savings. Thus. Investing firms expect a high percentage of the business and often provide funding in stages that is dependent on the startup company reaching set milestones. Acquisition financing uses investment funds to acquire or buy another company. it can look to reinvest with a new venture. One to ten millions dollars can be provided to help recruit more employees to establish engineering. IPOs have become a rarer occurrence recently. the CVCs investment would grow to $50 million. 1) Startup companies looking for financing make initial contact with CVCs. the CVC will ask the startup for more information including a product demonstration.[4] Investment firms only expect 20% of companies to succeed. CVCs often look to promote or insist on specific executives to manage the startup at this time. and technology. Initial Public Offering (IPO) When a company goes public. technology. If the startup then goes public for $100 million. In this case. [3] E. Negotiations can take place during this stage of investment valuation. creating advantages. They communicate this valuation to the startup. starting from the beginning to invest in a new startup. Finally. Companies at this stage are often doing very well. it is important that startup companies understand that the financing strategies employed by CVC that they are working with fit their needs. If the startup is happy with the offer. [edit]Financing Process The financing process outlines basic steps taken by CVCs from initial contact with potential startup companies through the first round of financing. often via a term sheet. however.patents. and any other related issues. CVCs can also seek out potential startups looking for funding. They look to sell their stock to cash in on the returns from their investment. liquidity. they look to reinvest in new ventures. processes. This is often the last phase where CVCs are involved. Mergers and Acquisitions Due to the current economic climate. the company can often be moved to another round of funding or even a series of funds that take over the management of the investment. The financing stages presented above are only a basic format. For example. [3] Each individual CVC uses specific procedures and financing stages that serve its interests best.[3] Third-Stage or Mezzanine Financing allows for greater company expansion. For example. or tenfold its initial investment. moving to second round of financing. suppose a CVC were to invest or buy 50% of a startup for $5 million. The startup company’s stock can now be bought and sold by the public. but may pay out the funding in 1/3 installments based on the startup meeting set milestones. and marketing functions. Next. This is often the ideal scenario CVCs hope to achieve with an investment. in this case one company is not buying another.[4] This is when an investing company can finally earn a significant return on its investment. This is a more realistic scenario. the CVC would be cashing in by selling its investment. 2) Startup management team presents a business plan to the CVC. This can include further development of management. especially when startup companies do not look to function independently. Expansion Financing Second-Stage: Companies already selling product are funded at this stage to help in their expansion.

The two main types are: 1) divisions within a larger healthcare company. what remains are a limited number of organizational structure types used by healthcare corporate venture capital. 6) Closing of financing is the final step. financial statements. The additional time may be necessary if the CVC needs time to complete their due-diligence or based on the startup company’s financial needs. [7] For example. [edit]Structure of Healthcare CVCs By definition.4) Legal counsels from both sides agree to a finalized term sheet where business terms for the investment are specified. a biotech company based in the UK that employs a proprietary process that has enabled them to discover and develop unique.[9] b) Adamas Pharmaceuticals. Since that definition rules out freestanding healthcare venture capital firms such as De Novo Ventures. 5) Negotiations are conducted between the legal counsels from the CVC and the startup company. and 2) wholly owned subsidiaries of larger healthcare companies. the CVC conducts a more thorough investigation of the startup company. A closed period. In most cases the other firms are limited partners and the primary company manages the fund and is the only general partner. Takeda Pharmaceutical Company (TCP). Because the top priority of many of these venture capital units or divisions is to fund ventures that may result in scientific and technological discoveries and advancements that may benefit their parent companies. understanding the startup’s books and records. as well as the current trends and some future predictions for the industry. is also established during which the start up company cannot discuss investing opportunities with other investment groups. the corporate venture capital field is made up of organizations whose primary activities are not investing in other firms (see above). CVC units of both of these types often engage in partnerships with other firms. biotech firms such as Biogen Idec.[7] [edit]Types of investments The largest segment of healthcare-related venture capital investments are made by the venture arms of firms who focus on biotechnology and pharmaceutical products. such as Eli Lilly and Company.[10] and . The startup legal team typically creates transaction documents that the CVC counsel reviews. During this time. This indicates that a pending deal is in the process of completion. referred to as a lock-up time period. This can take place immediately upon execution of the definitive agreements or after a few weeks. the most common types of investments made. Once a term sheet is finalized. projected performance. and Roche. and even its customer base. both sides look to negotiate and finalize financing terms. and the main reasons for which healthcare companies invest will be addressed. small molecules that modulate ion channels. Biogen Idec. all of which are healthcare-related companies and have internal venture capital units or wholly owned subsidiaries focused on venture capital. as well as publicly traded firms.[6] The structure of corporate venture capital within the healthcare arena. a California specialty pharmaceutical company whose primary focus is on novel approaches to treating neurological disorders. the portfolio ofTakeda Research Investment (the venture capital arm of TCP). Negotiations continue until all legal and business issues are addressed. and pharmaceutical companies such as GlaxoSmithKline.GlaxoSmithKline. employees and suppliers. [5] [edit]Corporate Venture Capital in the Healthcare Industry Main article: Corporate Venture Capital [edit]Introduction This section discusses venture capital activities of healthcare providers such as Ascension Health. most tend to invest in companies whose products or proposed products are similar to their own. includes such companies as:[8] a) Lectus Therapeutics.

In fact.[11] Many of these venture arms of larger organizations thus consider themselves financial investors in strategic areas of interest. Such 'David and Goliath' partnerships are already starting to emerge outside of the healthcare industry and will likely emerge within healthcare soon. While most healthcare corporate venture capital companies or divisions seek to at least be budget neutral to their parent companies. some of the first positive movement within corporate venture capital as a whole is coming from healthcare. as stated previously. but rather on exchange of technologies or process information.c) Xenon.[7] One primary strategic reason many healthcare-related CVCs cite for investing is to seek new directions and develop new products.[14][15] The latest survey on the top 75 most influential healthcare corporate venture capital divisions shows they are increasingly influential and larger than many independent VCs. the leadership of these firms recognize that developments reached by other companies could certainly be helpful to them. [7] Another strategic motivation for engaging in corporate venture capital activities is to supplement and support the activities of the parent company.[17] [edit]Sectors with CVC Investments . may become increasingly common as liquid funds become less available but technologies that have been developed are readily shareable. CVC fund managers usually will examine a broad array of investment opportunities that are related to some degree to the activities of their parent company in the hopes that the technologies developed will complement the product line of the parent company or even lead the parent company into an area of the industry in which it previously had not been occupied. These types of partnerships. because of the scarcity of available funds within the biotech segment of the industry the valuation of private biotech firms is at an all-time low. [7] [edit]Reasons for Investing There are a number of reasons for which a healthcare-related company chooses to pursue corporate venture capital. While all of the companies which were researched (with the exception of De Novo Ventures) also had research and development divisions and were actively pursuing improvements to their products. well-established company and a small. but also the process by which it makes them. [13] As such. The new venture fund recently opened by Merck Serono and the fund just closed by Ascension Health Ventures are just a few examples of the optimism that is slowly reentering venture capital within healthcare. [7] [edit]Current Trends & Future Predictions The repercussions of the current economic downturn have been felt throughout the field of corporate venture capital and healthcare has not been completely immune. These areas nearly always include the focus of their parent companies. while most major corporations with venture capital arms are keeping cash close to home. This rationale applies not just to improvements on the products a company makes.[16] Another trend that may see more action within the near future as venture capital funds continue to be scarce is an increasing number of strategic partnerships between firms that are based not on exchange of funds. but often are much broader than just the parent organization’s specific focus. interviews with top executives at one firm reveal that the improvement of manufacturing processed is very much a consideration in their investments. also known as corporate inkind investments. both strategic and financial. developing company who have complementary technologies or processes.[12] However. For this reason the focus of most CVC units is broader than their parent company. a leading Canadian biopharmaceutical company that aims to treat a broad range of major human diseases by isolating the genes that underlie these disorders and identifying drugs that target these genes. strategic reasons are generally stronger motivators than financial ones. the healthcare industry is seen as somewhat recession-resistant and this has encouraged some investors within the field. For example. This occurs most often when the firm in which the CVC division invests is focused on products or services that are fairly similar to those produced or offered by the parent company. One specific example of this sort of information exchange is a partnership between a large.

Kyphon. Biotechnology. and media/entertainment. there were $7. Medical devices.5 billion in total venture capital investments.5 billion and within medical devices and equipment for $2.9 billion in cardiovascular/heart diseases. The life sciences include sectors in biotechnology and medical devices and equipment. and Telecommunications. telecommunications. there has not been significant investments in health services and have actually decreased through these periods. Top Sectors for VC Investment:     Software. CVC division from Eli Lilly and Company:[18] Johnson & Johnson Development Corporation JJDC is the venture capital subsidiary of Johnson & Johnson. invests in promising start-up companies in North America. Telecommunications. Semiconductors. there were venture capital support during the past 20 years of $14.Investments from venture capital firms and CVC in 1998 were mostly in software and telecommunications sectors. For example. By 2006 the biotechnology and medical devices became the sectors with the most investments from both. venture capital firms and CVC. . Genentech. semiconductors. Software. and Scimed Life Systems. Other top sectors for CVC investments are software. CVC division from Dow Chemical. However. However. Venture capital investments have gone toward specific disease. Biotechnology CVC’s investments in biotechnology are higher than those from VC firms. Genzyme. [edit]Examples of Companies with Corporate Venture Capital divisions Eli Lilly Corporate Business Development Eli Lilly Corporate Business Development (CBD). Intuitive Surgical.2 billion targeted to the life sciences industry. Amgen.7 billion in cancer.7 billion.9 billion in diabetes. and $4. and Media/entertainment. Gilead Sciences. [edit]Venture Capital Company Products in the Life Sciences Many of today's well known companies in life sciences have been backed with billions of dollars by venture capital investments.[19] Dow Venture Capital Dow Venture Capital (DVC). $14. Top Sectors for CVC Investment:      Biotechnology. Venture capital investments within biotechnology accounted for $4. Some of these are: Boston Scientific. Europe and Asia. From the $25. medical devices and health services had a is not a top sector for CVC investments as it is for VC firms.

CA and Boston. in European headquarters in Zurich. Every opportunity is evaluated against the following criteria: [24]  Industry . Company Stage . [23] Ascension Health Ventures Ascension Health Ventures was established in 2001 by Ascension Health with a commitment of $125 million to invest in expansion.DVC is located in company headquarters in Midland. MA). depth and capability to build the business to scale and attract customers.     Investment Size .Established team with demonstrated relevant experience. Management Team . Adoption Potential . and is active through Siemens´ regional unit in Israel. in India (Mumbai). in China (Beijing).to late-stage within three to five years of a potential liquidating event. health care services and health care information technology companies.Sustainable competitive advantage with compelling benefit sufficient to influence market adoption. (Palo Alto.Expansion.[22] Geisinger Ventures Geisinger Ventures is the corporate venture arm of Geisinger Health System. KPV invests in medical devices.Healthcare segments including medical devices. and in Gotemba. operational and financial benefits to our limited partner health systems in addition to the financial return to the venture fund.[21] Kaiser Permanente Ventures Kaiser Permanente Ventures (KPV) the corporate venture capital arm of Kaiser Permanente. GV invests resources in healthcare technology. Japan. MI. information technology. [24] [edit]Investment Criteria By Provider Corporate Venture Capital (Ascension Health example) Opportunities are evaluated for potential clinical. medical diagnostics and therapeutics. Diversification is also a consideration. industry and healthcare sectors. . SVC is located in Germany (Munich). up to $10 million per company. AHV seeks to balance the portfolio across sectors and stages to mitigate investment risk. in the U. medical and information technology and services. SVC has invested over 800 million euros in more than 150 startup companies and 40 venture capital funds. AHV has also selectively invested in other healthcare venture funds. medical devices.Approximately $5 million per round.S. To late-stage healthcare companies.[20] Siemens Venture Capital Siemens Venture Capital (SVC) is the corporate venture organization for Siemens AG. Its focus is on growth segments in the energy.

including through the use of corporate venturing. This has traditionally meant innovation. Other . such as IBM and Microsoft. such as partnering or competitions. therefore. has been of lower priority than gaining market share and pricing power unless required by regulatory action. [edit]Corporate Venture Capital in the Utilities Sector. have concentrated more on other forms of finding external innovation. such as EDS/AT Kearney (in 2002/2003. 2000. a number of US-based technology companies with corporate venture capital units in the 1990s. telecom operators in particular. The invention of the printing press in Germany about 1440 is widely regarded as the most important event of the second Christian millennium. Cleantech Group has tracked a +50% increase in corporate venturing in clean- . has historically been more pro-cyclical to the economic than other industry sectors. The two most influential corporate venturing units in the media sector. gas and phone industries have started to increase their use of external innovation and corporate venturing.132 on March 10.[25] The nontechnology firms interested in buying stakes includes global advertising agency WPP.[26] However. according to the July 2010 issue of Global Corporate Venturing. while non-US companies include Korean conglomerate Samsung and Chinese computer maker Legend Holdings. including India. have built up a successful track record through at least one economic cycle and an increasing number of utilities across the electric. has been described as the "first global technological revolution". such as Comdisco. However. the application of digital or wireless products to the energy or other industries to reduce power consumption or improve efficiency. However. often with business models based on using the internet. Technology companies with corporate venturing divisions were even more cyclical investors at the top of the market than independent venture capital firms and then many of the last funds to be raised before the peak were subsequently closed.358 . [31] [edit]Corporate Venture Capital in the Energy and Clean-Tech Sector Clean technology. according to consultants at Cleantech Group. according to AT Kearney). media and telecoms bubble burst in 2000 and 2001. [30] Their success has allowed Naspers to survive and become the largest media group in emerging markets operating in more than 127 countries and IDG to create one of China's largest venture capital groups and a model to expand across Asia. or sold. have chosen to primarily operate in emerging markets away from established mainstream media groups. [29] which reflects the role wider and faster dissemination of information has in society. such as Deutsche Telekom's T-Venture and France Telecom's Innovacom. non-technology firms have continued to invest their corporate venture capital in information and communication technology businesses and in recent years a number of non-US-based technology companies have expanded or started their corporate venturing units. The evolution to web-based storage and transfer of media content and control being passed from media owners to people more broadly is affecting business models and established communication companies are using corporate venturing as a tool to help understand the changes. This role can be powerful both for the venturing parent and economies where they operate. The success and fears for the future of other groups has encouraged a host of expansion and new media units to be set up. including Telecom Operators Utilities have traditionally been businesses where the customer is the regulator rather than the rate-payer using the service. the largest announced fund since the technology. Since 2005. Corporate venturing at utilities. South Africabased Naspers and US-based Interactive Data Group. the index was 2.[28] [edit]Corporate Venture Capital in the Media Sector Media companies have found their business model being transformed by the internet and digitalisation of information.less half its high point. including Kaplan.[27] Korea Telecom in July 2010 set up a KRW1 trillion (US$830m) corporate venturing fund. This fall affected technology investing as the NASDAQ was an important market to sell venture capital-backed companies. [edit]Corporate Venture Capital in Information and Communication Technology Companies A decade after the NASDAQ stock exchange peaked at 5.AHV typically requests a Board observer seat for each portfolio company. oil major Chevron and Dow Chemical.

such as Burrill & Co. provides reliable industry data. [37] [36] while post and logistics group Deutsche Post DHL set up DHL Innovation Center into its DHL Solutions & However. regulatory restrictions and relative better performance in using debt-backed securities. Banks have sometimes invested in venture capital to gain early access to companies before their flotation (initial public offering. data and comment for the industry and the wider entrepreneurial and venture community. other established groups cut back on their corporate venturing activities during the financial crisis.[42] . economy.S. sponsors professional development. however. IPO). with an increase in technology starting to see further resurgence. The Association’s goal is to bring together professionals to educate. [34] The remaining financial services investors are more likely to be boutique merchant banks. [41] National Venture Capital Association Mission: the National Venture Capital Association (NVCA). venture capital industry. and support entrepreneurial activity and innovation. [35] [edit]Corporate Venture Capital in the Transport and Logistics Sector Companies in the transport and logistics sector have been occasional sponsors of corporate venturing units. a nascent class of large firms. along with daily news updates online and a LinkedIn community message and discussion boom. albeit with below-average returns. "banks have long been important private equity investors. [38] [edit]Corporate Venture Capital Professional Organizations Global Corporate Venturing Global Corporate Venturing is a media group providing news. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.[32] [edit]Corporate Venture Capital in the Financial Sector Financial services companies have long been interested corporate venturers. This model is similar to the approach taken in other economic sectors and led to Citigroup being ranked the most influential corporate venturing unit in financial services in November 2010.S. ie investing in VC funds or directly in third parties for a minority equity position.[33]According to this academic paper. the importance of working with external organizations to seek innovation. inform and collaborate with each other around topics core to the group’s interests. strives to maintain high professional standards. partnerships and investment opportunities has never been greater. has started to emerge using corporate venturing. The motivations for their investment activity. as a tool to help their business with product development or understand new technologies/services. Global Corporate Venturing selected US oil major Chevron as the most influential corporate venturing unit among the energy and natural resource companies. a monthly PDF magazine. However. Banks and insurers have been active limited partners in independent venture capital funds. such as insurer The Hartford and bank Citigroup. poor financial returns from investing in venture capital over the past decade. US-listed General Motors set up a $100m fund in June 2010 Innovations unit in late 2009. and facilitates interaction among its members.. comprising more than 450 member and energy from 79 to about 199 in 2009. according to research by Global Corporate Venturing. Given the current market conditions. there are fewer banks and other financial services investors active in the sector. is the premier trade association that represents the U. The NVCA represents the public policy interests of the venture capital community.[40] Strategic Venture Association The Strategic Venture Association is an organization dedicated to the needs of the corporate investing and strategic partnering community. With the decrease in number of IPOs after the dot. are frequently more complex than those of other LPs". than mainstream universal banks or bancassurers.[39] The flagship title is Global Corporate Venturing. with Netherlands-based TNT winding up the Logispring II fund where it was a majority investor in late 2009.

YVCS aspires to aid in the creation of successful VCs by establishing.Young Venture Capital Society Mission: Young Venture Capital Society. network of contacts. financial astuteness. is a not-for-profit educational organization. [43] . created for young professionals under the age of 35 to help educate and equip the next generation of venture capitalists with: technical knowledge. and knowledge of the venture capital industry as a whole. (YVCS). Industry perspective.

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