Alex Dundson of SaatchInvest has asked the question: “What does corporate venture really do?” Corporate venture’s most useful role is a sensing function. It gives corporates a good roadmap for the future. This is the most important function, especially in times of technology change.

For opportunity spaces which are new markets or enabled by new technologies, firms can use corporate venture to understand the market with greater efficiency, nuance and less risk than other approaches.

Startups that are early in…