Eli Lilly10 - Corporate Venturing at Eli Lilly GEB5114 -...

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Corporate Venturing at Eli Lilly GEB5114 - Entrepreneurship and Venture Capital December 11, 2011
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1. What is the role of corporate venture capital? Corporations with corporate venture capital (CVC) programs invest monies in start-up companies in exchange for an equity stake in the business. By doing so, they may gain access to new ideas and technologies or possibly support for their own business objectives. In some instances, the result is symbiotic; producing something neither company could on their own. Other times, the corporation’s interest in the start-up may be more for fact-finding than financial gain and sometimes it may even be to thwart a rival company’s opportunity. CVC groups can do more than just fund a start-up, they can also provide relevant industry experience and access to R&D, marketing, and distribution channels that may not be available to smaller start-ups without the same level of resources and relationships. Further, the CVC’s investment can help validate the start-up, which may improve its chances at receiving additional outside funding. Lilly Ventures, a CVC, is a venture capital arm within the Eli Lilly and Company corporation. This branch acts like a venture capital (VC) firm in funding start-up companies in fields relevant to Lilly. These investments have allowed them to benefit from the innovations of the start-ups,
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Eli Lilly10 - Corporate Venturing at Eli Lilly GEB5114 -...

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