Note: The views & opinions expressed in these essays are strictly my own, and not those of any entity I may be associated with as an employee, consultant, promoter, investor, etc.ARCHIVES
Technology Entrepreneurship in India - Teams
Technology Entrepreneurship in India - Generating Revenue
Technology Entrepreneurship in India - Raising Capital
Equities, ETFs, F&O
Oct 2011: Equity Risk Premium for India
Jun 2011: Investing in Indian equities
Technology Enterprises in India
Nov 2010: Technology investment in India - WATER
Aug 2010: Technology enterprises in India - 3 avatars
Risk Capital for MSMEs
Mar 2010: Risk mitigation for investors in MSMEs
Mar 2010: Why don't (Indian) MSMEs get risk capital?
Feb 2010: Angel investing - Will it work for Indian MSMEs?
Feb 2010: What's so special about innovative MSMEs?
Feb 2010: Where do Indian/NRI (V)HNIs invest?
Feb 2010: Funding options for innovative MSMEs in India
Jan 2010: Innovative MSMEs in India
Corporate venture capital
(Last revised Mar-2012, Send comments to email@example.com)
Corporate venture capital ('CVC') is the investment of corporate funds directly into new ventures, usually in the form of equity financing. MNCs such as Intel, Dow, BP, Cisco, Siemens, Motorola, etc. have been active CVCs for a long time. In India, Reliance & Airtel are two examples of CVCs.
The usual reasons for an entrepreneur to prefer a CVC are: access to distribution channels and industry networks, acquisition potential, and synergies with corporate business units.
An an entrepreneur targeting a CVC, you must:
If you are unsure about whether to take funds from a CVC, instead of a traditional VC, ask yourself this - if capital was not an issue, would you still want to develop a close (strategic) working relationship with the corporation?