Companies are best when portfolio out their corporate venturing unit's portfolio when the division is managed independently.
Corporate venturers often invest in start-up companies to identify businesses to buy later.
In fact, according to a paper by David Benson of Brigham Young University and Rosemarie Ziedonis of the University of Oregon, 20% of acquisitions made by the companies with the largest corporate venturing operations were in businesses in which their venturing arms had previously invested. Benson and Ziedonis find a surprising pattern in these purchases.
In their article in Journal of Financial Economics, Corporate venture…
