A new survey reveals complaints and constraints within large companies' investment units
Innovation is key to a corporation’s survival. No company wants to be the next Blockbuster, Sears, or that one nobody even remembers anymore.
“If you look at the large Fortune 500 companies 50 years ago, many of them no longer exist,” says Ilya Strebulaev, a professor of finance at Stanford Graduate School of Business. “The big reason why was their failure to innovate.”
Historically, large corporations kept up with innovation through in-house R&D and mergers and acquisitions. Yet it’s only in the last decade that corporate venture capital (CVC) has gained traction as a way to remain relevant and stay ahead of competitors. In 2020, corporate venture capital arms invested more than $70 billion in startups, accounting for a quarter of all VC deals.
This piece originally appeared in Stanford Business Insights from Stanford Graduate School of Business. To receive business ideas and insights from Stanford GSB click here: (To sign up: https://www.gsb.stanford.edu/insights/about/emails)