Premium
The role of venture capital in corporate development
Author(s) -
Rind Kenneth W.
Publication year - 1981
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.4250020206
Subject(s) - corporate venture capital , venture capital , social venture capital , business , capital (architecture) , investment (military) , general partnership , value (mathematics) , function (biology) , finance , political science , archaeology , machine learning , evolutionary biology , politics , biology , computer science , law , history
Many corporations have now discovered the value of a venture capital programme as an aid to the corporate development function. The article describes the venture capital business, reviews its history, and indicates the reasons for the resurgence of interest in corporate venturing. The problems of direct venture capital investment by corporations are enumerated and the trend towards investment in outside venture capital partnerships is explained. The conclusion drawn is that, whereas venture capital is a useful tool for corporate development, it is difficult to do internally and an outside partnership investment can serve as an alternative first step or as a supplement.