Corporate VCs Disappearing, Or Are They?

from the sounds-familiar dept

It was just a few weeks ago that we pointed out that many corporate VCs were sticking to their guns. Yet, today is an article with some analysts saying that they expect many corporate VCs to close, because they're losing money on their investments. That's not such a hard sell, as many companies have already shut down their corporate VC programs (way to predict the past, guys). However, the analysts seem to think that the only reason for a corporate VC program is to directly make money for the company. Thankfully, the article includes quotes from corporate VCs who point out there are plenty of other reasons to have such a program in place. Corporate VCs can act as an "early warning system" as well as to help build up areas that can eventually help your core business. Dumping corporate VC programs just because they lost money for a couple of quarters seems short sighted.

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