Corporate venture partners
Strategic investors or corporate venture partners are usually organized as departments or subsidiaries in their major enterprises or holding companies. Strategic investors above all secure access to technological innovations with their investments (‘window in technology’). Advantages for startups are the realization of synergy effects as well as the early integration of development competencies from the corporate venture companies in particular. Nevertheless, the interests of the corporate partner are set out here, thereby risking restrictions in regard to further courses of action and cooperation options. Higher exit opportunities can also be confronted with reduced sales proceeds owing to the lack of competition.
The pros and cons must be carefully reflected. Our experience over the past few years has shown that strategic investors no longer inevitably have to lead to a predetermination of the exit partner. Not rarely, corporate venture partners form a larger and well established investor consortium together with other strategic investors and VCs.
Examples of corporate venture companies include Boehringer Ingelheim Global Venture Fund, Novartis, Merck BASF Venture Capital GmbH, Bosch Venture, T-Venture, Siemens Venture Capital, etc.