Business Terms Glossary

Corporate Venturing

Definition of Corporate Venturing

Corporate Venturing refers to a process in which large corporations make investments to further their own strategic interests.

Typically, corporate venturing investments are made in autonomous management teams that operate independently from the corporate mothership.

Corporate venturing may involve taking a passive, minority position in an outside business (corporate venture capital) or taking an active interest in an outside company. It can also involve forming a startup as a stand-alone unit.

The core goal is to provide an alternative to traditional methods of growing a company. The idea is that growth developed exclusively from internal teams may be stunted by insular thinking or corporate bureaucracy. It makes sense -- the best ideas have always come from entrepreneurial environments and from individuals who think entrepreneurially.

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