Learn in the textbookMechanisms for Commercialization Support and Venture Funding
DefinitionCorporate venture capital (コーポレートベンチャーキャピタル) is investment in start-ups by an operating company whose main business is not investing, aimed at synergy with its own business, along with the organization that carries it out.
ExplanationThrough these investments, the company gains early access to new technologies and business ideas it lacks, leading to new businesses or a stronger core business. It is positioned within technology development strategy as one way to bring in technology from outside young companies rather than developing everything in-house.
AnalogyIt is like a company sports team backing a young player who could strengthen its squad, hoping to play alongside them in the future.