Can Big Companies Nurture Little Companies?

An increasing number of big companies have set up their own venture capital units to invest in start-ups. But many corporate executives, not to mention entrepreneurs, remain skeptical about whether corporate venture groups can compete with small, independent firms. The independents' lack of bur...

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Bibliographic Details
Published in:Harvard business review 1999-05, Vol.77 (3), p.16
Main Author: MARUCA, REGINA FAZIO
Format: Magazinearticle
Language:English
Subjects:
Advantages
Corporate management
Entrepreneurs
Finance
Management
Startups
Study and teaching
Venture capital
Venture capital companies
Wages & salaries
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Summary:An increasing number of big companies have set up their own venture capital units to invest in start-ups. But many corporate executives, not to mention entrepreneurs, remain skeptical about whether corporate venture groups can compete with small, independent firms. The independents' lack of bureaucracy gives them nimbleness that larger, more diverse companies cannot match. A new study indicates that such skepticism about corporate venture groups may not be warranted: their investments appear to be at least a successful as those made by independent venture capitalist.
ISSN:0017-8012