Corporate Venture Capital (CVC)

Corporate Venture Capital (CVC) is when a corporation invests directly in external startup companies, often for strategic alignment rather than purely financial returns.

Motivations:

• Access to new technologies.

• Explore adjacent or disruptive markets.

• Build strategic partnerships.

• Complement internal R&D efforts.

Characteristics:

• CVC arms are separate from traditional venture capital firms.

• Investments typically range from seed to growth stage.

• Can include equity, convertible debt, or strategic alliances.

Example: Etisalat Ventures investing in MENA-based fintech startups.