Armed with cash and know-how, corporate VC picks up the slack
As traditional venture capital firms become more discerning about which startups to fund, corporations are launching venture arms that are involved in a growing share of healthcare deals. In recent years, corporate venture firms invested more money in biotechnology than any other sector except software.
Implications of increased corporate venture capital investments:
- Startups should seek corporate partners to benefit from rich networks and robust marketing, managerial, and compliance capabilities.
- Corporations should nourish healthcare product pipelines with corporate venture arms, which also will expose them to fresh ideas and talent.
- Partnerships with traditional venture firms can help corporations broaden their reach into start-up communities without having to grow it all in-house.
- Traditional venture firms should team up with corporations or their venture arms, which provide complementary benefits alongside cash.