Skip to content
ComCompanies Investing in Startupspanies Invest in Startups to Repair Weaknesses

Companies Investing in Startups aren’t in Business to Nurture Startups

A study by Yale School of Management’s Song Ma, assistant professor of finance, shows that a large number of industrial firms that back startups aren’t doing it only for the potential profits. Many of these investments are in startups that aren’t even the company’s main line of work. These companies tend to make these investments when they are struggling, in order to gain access to innovation and fortify an area of weakness within the company. Many companies are creating corporate venture capital (CVC) arms, investing in startups relevant to their interests. And surprisingly this popular tactic works most often than not.

CHIEF FINANCIAL OFFICER (CFO) PROGRAM
Back To Top