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.

What are the implications?

Biotech ranks in top five corporate venture capital investments
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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.