What To Consider When Forming A Corporate Venture Capital Program

Introduction

Corporations continue to look to innovation to increase value and expand capabilities. Traditionally, corporations focused on internal research and development ("R&D") and acquisitions of strategic targets. Yet, innovation through R&D can have its limitations as it is funded internally and can be restricted by internal policies and procedures that may hinder innovation. Innovation through acquisition also has its risks, as the purchaser may not identify all the potential issues of the target when conducting their due diligence. Purchasers may also face issues when attempting to integrate the target into their existing business – particularly when the purchaser is a multinational corporation and the target is an emerging company.