Venture Capital

Are business angels the same as corporate venturing?

The term corporate venturing refers to a process in which two separate companies form a partnership in which one, usually the larger company, invests directly in the other in return for a share in that company's future.

The investment and the return may be in any form, depending on what is of value to each party, so, the investment may be in cash, or management or technical resources - a 'contribution in kind'. The return may be a minority shareholding, an exclusive licensing deal, the development of a new product or process or ownership or part-ownership of the intellectual property of the smaller firm.