Corporate Venturing

Corporate Venturing Meaning:
In venture capital terminology, the term Corporate Venturing refers to the investment technique employed by corporations to finance other smaller companies by acquiring an equity stake in them.

Corporate Venturing Example:
For example, a Corporate Venturing situation would typically involve a corporation investing in a smaller corporation by setting up a separate fund specifically designed to invest in the growth and startup sector, much like a traditional venture capital company would do. Also, investments can be made indirectly through trusts and other venture capital companies. Corporate Venturing can also consist of alliances of a technical nature in which a larger company provides technology to a smaller company or assists in the development of new products. This type of Corporate Venturing requires no capital investment or equity participation.