Corporations usually invest in startups through one of two ways: They create a separate corporate venture capital arm, and raise funds earmarked for investment. Or, the corporation invests directly from its own accounts.
Insiders expect a drop-off in investing from the second type of corporate venture capital, because those companies will wait to see how their core businesses fare in the current downturn. “In difficult times, corporate VCs, I think, often look at it as if it was a discretionary thing — it’s a nice-to-have,” said Wendell Brooks, head of Intel Capital. Visit Business Insider’s homepage for more
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