14 CVC: A Traditional Model of Corporate Venturing Corporate Venture Capital (CVC) is the first thing that comes to mind when the topic of corporate venturing is brought up. Under this program, companies leverage their financial resources, industry expertise, and market relationships to invest directly in startups to foster innovation, grow capital, access new markets, and gain competitive advantages. CVC typically involves minority equity investments in startups, allowing corporations to engage with entrepreneurial ecosystems without taking full ownership. Unlike independent venture capital firms, CVC units of publicly traded companies are expected to disclose their investment targets. Investment sizes vary widely, with many corporate venture arms managing portfolios between $50 mil- lion and $200 million. The practice is global in scope. For instance, Alibaba Group’s Ant Financial has invested in fintech startups such as Paytm in India, expanding its digital payments footprint. In Europe, Siemens’ Next47 has invested in startups like Augury, a predictive maintenance company. In the US, Google Ventures (GV) has strategically funded industries ranging from healthcare to AI, with early-stage investments in companies like Uber. The Indian conglomerate Larsen & Toubro (L&T) uses CVC to track emerging technologies while pursuing financial gains. L&T avoids seed-stage investments, preferring startups that have already demonstrated product-market fit and acquired initial customers. Its current focus areas include Enterprise SaaS and DeepTech. Looking at CVC’s prevalence across industries, it becomes clear that it has become a standard practice. Between 50% and 60% of corporations in each sector report engaging in CVC, a remarkable adoption rate given that CVC is the most capital-intensive form of corporate venturing. Key Components of CVC Programs Personnel CVC teams may consist of internal talent drawn from the parent corporation or external experts, such as seasoned venture capitalists and former entrepreneurs with deep knowledge of startup ecosystems. Structure Some CVC programs maintain dedicated, segregated pools of capital exclusively for startup investments, while others operate on a case-by-case approval basis. Governance Investment decisions are generally made by committees comprising senior corporate executives, external advisors, and CVC personnel, balancing strategic objectives with financial returns. Between 50% and 60% of corporations in each sector report engaging in CVC—a remarkable adoption rate for the most capital-intensive form of corporate venturing. “