Organization Behavior On Corporate Venture Capital

Digital related businesses are growing significantly and globally and, increasing 20% on average from 2014 to 2020; it is dominated by new rising startups based in Silicon Valley. The financing model implemented by those startups uses Venture Capital (VC) model. There are a lot of numbers of VC in the world performing a fund rising investing on new startups. Big corporates also participate in investing on those startups using subsidiary company acting as a Corporate Venture Capital (CVC) vehicle that managesthe fund from the parent company. Since 2014, CVC has become the major leading investors in many venture transactions with a big share of venture pie. Venturing is a risky business with a high failure rate and big money involved, but the higher risk at stake will give the higher possibilities of gaining for the company. Big corporates that have strategies on investing by using merger and acquisition models will face difficulties when they invest in this kind of high-risk business. Traditional approaches and thresholds from existing investment models will not match the nature of this business and should be changed by using the venturing scheme. This research explores the change and shift behavior of organization starting from the big corporates to corporate venture capital when they are doing investment using CVC as a venturing vehicle.