21 Table 1. Comparative Overview among the 4 Corporate Venturing Programs FEATURE Corporate Venture Capital (CVC) Accelerators & Incubators Venture Building Venture Clienting PURPOSE To gain financial returns and strategic benefits by investing in startups To initiate and fast-track the growth of startups through structured steps To create new ventures internally to explore new business opportunities To procure innovative solutions as a customer FUNDING TYPE Equity-based investment Physical, human, and social capital. Companies might ask for equity in exchange for participation Internal funding No funding is expected FINANCIAL RISK High, due to equity investment Low-to-moderate financial risk; costs are tied to running the program rather than direct investment High, as it involves resource-intensive internal development Minimal financial risk; costs limited to procurement ENGAGEMENT WITH STARTUPS Startup is seen as a financial asset and a strategic partner Startups receive structured support through a standard program The venture is created and owned by the corporation The startup is treated as a supplier and strategic partner TIME HORIZON Medium to long. Realizing returns and strategic impact may take years, as it requires startups to scale Short (Accelerators) to medium (Incubator). Startups then, either scale or pivot Medium to long. Startups need time to establish, develop, and scale Short to medium. Solutions are implemented rapidly, within a few quarters EXIT STRATEGY Often seeks an exit (e.g., IPO or acquisition) to realize returns No direct exit strategy; corporations may form partnerships or later invest in promising startups No exit; ventures either become independent businesses or are integrated back into the corporation No exit required; solutions are implemented or dropped based on performance SCALABILITY Scalability depends on the financial and strategic success of invested startups Scalability depends on the number of startups a corporation can support in each cohort Scalability is limited by internal resources and the time it takes to develop and grow new ventures High scalability, as corporations can implement multiple solutions from various startups