Corporate Venture Capital (CVC), strategic

  1. A dedicated unit within a corporation that invests in non-controlling equity stakes of startups with the goal of achieving strategic benefits beyond just financial gains. These strategic benefits can include learning about the solution, enabling a new product, process or business, and business model, which can have a direct or indirect impact on the profit and loss (P&L) of the corporation. Unlike general CVCs, strategic CVCs focus on leveraging the solution of the startup for strategic benefits, rather than just the value of its equity.