Analysis of 13,000 venture capital rounds finds corporate venturing units outperform independent VCs but these returns can be even higher if the in-house teams are paid appropriately.
Corporate venturing units aim to help their parent companies find highly profitable new projects, spot promising technologies before competitors do, and collaborate with the best new thinkers in their field. But to score these kinds of wins, companies must organise their VC efforts with an eye to the delicate balance between entrepreneurial finance and organisational reality.
Our analysis* suggests companies that are not doing that may be undercutting themselves. Specifically, we study the compensation awarded to corporate venture capitalists…
