Tuesday, February 26, 2008

Corporate venturing and Investment

Corporate venturing and investment has taken a back seat after the dot com bubble burst in 2000. But now, the major players are back and cooperation agreements and investments resurfaced as a business strategy. Corporate venturing and investment has taken a back seat after the dot com bubble burst in 2000. But now, the major players are back and cooperation agreements and investments resurfaced as a business strategy.

While telecommunications to biotechnology is finding a new lease of life on the part of investors. According to the National Association capita venture, corporate venture investment rose from $ 680 million to 1.05 billion dollars in the last year.

These solid gains have allowed companies the flexibility to invest in proven technologies as well. But even now, you can clearly see an apprehension among the giants in technology companies and venture investments.

One of the most important reasons for this is that the interests of the venture capital and society rarely encounter.

The strategy
Most companies are investing in start-ups to keep an eye on new technologies coming on the lookout for new acquisitions and also to block new products that may prove to be serious competition.

However, large companies such as Sun and Dell have dismantled their enterprise group. Other technology giants are trying to look Corporate Venturing and investments from a strategic point of view while ensuring that they avoid the pitfalls of the financial commitment. This in itself is the biggest challenge facing the venture groups today. They need to find the right balance between strategy and financial roles.

The future
The triumph and the rise of new technologies, it needs to be backed by venture capitalists. Intel, which is regarded as one of the most tech savvy investors, recently invested $ 600 million in a new company headed by Craig O. WiMax McCaw.

Yahoo also would have made a huge profit by investing in a start-up project called Google, about 10 years ago. This example proves that itself investment firm is not a question of losing money.

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