Resolving Muddled Objectives in Corporate Venture Capital
Corporate venture units are often doomed by their parent company’s lack of clarity on objectives and priorities.
Michael A. Cusumano and Tomohisa OkamotoJune 22, 2026Reading Time: 17 min
Summary:
The most consequential decision that managers of corporate venture capital units must make is whether to prioritize financial or strategic ...
Large companies seeking access to new technologies — as well as the high returns promised by early investments in successful startups — have been establishing corporate venture capital (CVC) units for many years. But returns on those investments can be erratic, and new technologies can be difficult for the parent company to take advantage of. Why do many companies struggle to derive adequate benefits from their CVC efforts? We think that at the heart of the issue is a persistent confusion over objectives that ultimately makes CVCs difficult to sustain.
Dueling objectives have long...
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