Strategic Alliance, Entrepreneurial Financing, Startup, Value Creation, Venture Capital
Widyasthana, G. N. Sandhy
Pramuwidyatama, M. Gilang
Amid high uncertainty and disruption, for mature corporations, product service innovation and business development initiatives can be risky. Corporations are mitigating the risks and looking for a new corporate innovation engine by establishing corporate venture capital (CVC) to fuel firms long-term growth and sustainability. CVC is not only investing in potential startups but also conducting non-financial value add activity with its portfolios to bolster the capabilities of its parent firm. Business synergy among startup portfolios and CVC networks can also fundamentally support a startups growth, consequently leading to the growth of the startups and a preferred chance to exit at a suitable valuation for the CVC. This paper shows that CVC outside-in partnership activity can bring new businesses to the parent firm and benefit startups to get more appreciation for raising later-stage funds.