Corporate Venture Capital
Alternatively, start-ups looking to grow quickly are turning to corporate venture capital. This is when corporations invest funds directly into external start-ups to gain a specific competitive edge. For example, Santander InnoVentures. Lead by Santander, InnoVentures is a London based investment department that launched a £100 million fund in 2014, to get closer to disruptive firms. The trade-off is simple, Santander invest, you get the exposure and customer base that a leading bank offers, and they get to use your product to grow their market share over their competitors.
Corporate venture capital is when corporations invest funds directly into external start-ups to gain a specific competitive edge