Questions and Answers
1. What is Corporate Venturing?
The practice of corporate venturing is a means of achieving growth for both large and small companies through a partnership where strengths are traded and risks and rewards are shared. The partnership can take a number of forms where the larger company invests whatever resource the SME requires. It might be investment of management expertise, access to established distribution channels, equity, or research and development facilities for example. The smaller company retains its independence, the larger company gains a window on a new technology, product or niche area of expertise. Both benefit from generating a potential new revenue stream for their businesses.
2. What are the benefits for SMEs?
For SMEs, corporate venturing allows them to locate and access whatever resource it is that they require. It might be management expertise, equipment, research and development facilities or access to distribution channels that is needed. Corporate venturing allows SMEs to exploit their potential in a way that would have been impossible alone but at the same time retain their brand name, uniqueness, intellectual
property rights and independence.
Corporate Venturing UK provides an effective way to find potential partners. It is then up to the SME to negotiate the most favourable deal they can - but built in to the system is automatic access to high quality advice to assist them.
3. What are the benefits for corporates?
For large, well-established companies, 'enlightened self-interest' is a compelling force behind their involvement in corporate venturing. It is a long-term strategy, giving them the means of harnessing new skills and technology to enhance their core products. It is also a way of counteracting the restraints that inhibit innovation. As well as the technology, corporate venturing partnerships give large companies access to the specialist expertise, niche markets and enthusiasm that is often found in innovative SMEs. A further motivating factor is the government's changes to tax law which seeks to encourage business-to-business investment.
4. What is the role of Corporate venturing UK?
Corporate Venturing UK is sponsored by the DTI as part of a wider
