According to the Price Waterhouse Coopers and National Venture Capital Association, corporate venture capitalist invests an average of $4.2 million, while independent venture capitalist invests double, at around $8.3 million.
This brings us to a question, why are corporate venture capital investments so much smaller?
Reasons on both types of investments vary. According to Ian MacMillan’s written report to the National Institute of Science and Technology, corporate investments and independent investments both strive for a financial return but corporate investments have a more strategic reason.
“While the sole objective of independent venture capital is financial return, CVCs generally have a strategic objective as well. That objective may include leveraging external sources of innovation, bringing new ideas and technologies into the company, or taking ‘real options’ on technologies and business models (by investing in a wider array of technologies or business directions than the company can pursue itself)” The Dhirubhai Ambani Professor said.
