Ken Kaufman's picture

Venture Capital for a Fortune 500?

Did you know that large companies like IBM, Novartis, Samsung, Intel, and many others have and will continue to be venture capitalists to younger firms? These large corporations are looking for new technologies, products, and services that will enhance or add value to their core business. In return, these smaller and younger firms may be able to benefit from (besides the capital) affiliation with these larger firms from a marketing, operational, and back-office perspective.

 

Corporate venture capital funds last year invested in 8% of the total $31 billion in venture money that was was poured into young firms, report the National Venture Capital Association and PricewaterhouseCoopers (USA TODAY, 20 May 2008, Companies Give Start-Ups Billions in Venture Capital). The large companies create their own venture capital funds and scour the marketplace for opportunities.

 

If you are considering venture capital either as an exit strategy or an opportunity to grow your business, perhaps you should consider which large corporations may be interested in what you do. The numbers tell us one thing for certain - large corporations will continue to play a critical role in giving smaller and younger firms access to the venture capital markets. Contact a business financial consultant to help you gain access to the venture capital markets.

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