There are many sources of capital available to fast-growing startups. Two main investor groups are traditional venture capital firms (“VCs”) and the venture capital arms of established companies, known as corporate venture capital funds (“CVCs”). In general, VCs and CVCs are similar in many respects (in that they seek to invest in promising startups), but they also can have fundamentally different incentives and expectations. This article provides an overview of the structures and incentives of these two investor groups and outlines certain relationship dynamics to consider during the fundraising process.
Read the full blog post.