Benefits of Investing through Venture Capital Firms

as opposite to direct corporate investing

• Access to professional venture investing expertise, practices, and networks

• No challenge to conventional corporate thinking

• Possibility of investing in disruptive opportunities and different kinds of people who think outside the constraints of the corporate investor's current business

• Intermediation of VC firms in establishing contact with companies who are not interested in discussing investment or acquisition with the competitor

Complementary Expertise of Venture Capitalists and  Corporate Investors

• Venture capitalists' expertise focuses more on identifying business opportunities, evaluating business plans and financial projections, assessing the management team, conducting overall due diligence research, making business valuation, negotiating and structuring the deal; it is focuses less on technology and niche market specifics

• Corporate investors can provide complementary expertise in the area of technology and market due diligence