Re:Unicorns are setting up their own venture capital funds
by JumpCrisscross on Sunday November 18, 2018 @06:34AM
(#18479882)
> Do "corporate VC" people have the mindset of a VC in that they're aware that most investments will fail and that's ok as long as a few "moonshots" go really well?
In my experience, the VCs themselves do. Their bosses say they do (hence why the corporation started a VC arm). But after a few failures, that tends to change. (Analog: why many corporate cultures try and fail at emulating Skunkworks.)
> Was Yahoo! buying tumblr an example of corporate VC? How about Facebook buying Instagram?
No, that’s M&A. Generally when one says Company A bought Company B, that’s corporate finance.
GM investing in Lyft is corporate VC. Tyson investing in Beyond Meat is corporate VC. Minority stakes, early-stage companies and a strategic motive describes corporate VC.
In my experience, the VCs themselves do. Their bosses say they do (hence why the corporation started a VC arm). But after a few failures, that tends to change. (Analog: why many corporate cultures try and fail at emulating Skunkworks.)
> Was Yahoo! buying tumblr an example of corporate VC? How about Facebook buying Instagram?
No, that’s M&A. Generally when one says Company A bought Company B, that’s corporate finance.
GM investing in Lyft is corporate VC. Tyson investing in Beyond Meat is corporate VC. Minority stakes, early-stage companies and a strategic motive describes corporate VC.