Corporate Venturing and Innovation: Driving Growth and New Business Development

This background note introduces the topic of corporate venturing activities (CVA) and describes the four most common types (Corporate Venture Capital Unit, Corporate Venture Builder, Venture Client Model and Corporate Incubator/ Accelerator). Firms engage in CVA as a means to drive innovation and new business development by participating in entrepreneurial ecosystems, forming relationships with start-ups, and gaining insights into emerging technological innovations. Such activities include sourcing suitable start-ups, investing in early-stage companies, and nurturing and scaling business ideas. The corporate’s goal is to capture value by leveraging innovative solutions for the core business, acquiring the new company, or selling its equity stake.