"[T]hese funds fail to foster successful growth businesses because ..." #readingToday
We often have been asked whether it is a good idea or bad idea for corporations to set up corporate venture capital groups to fund the creation of new growth businesses. We answer that this is the wrong question: They have their categories wrong. Few corporate venture funds have been successful or long-lived; but the reason is not that they are "corporate" or that they are "venture." When these funds fail to foster successful growth businesses, it is most often because they invested in sustaining rather than disruptive innovations or in modular solutions when interdependence was required. And very often, the investments fail because the corporate context from which the capital came was impatient for growth and perversely patient for profitability.
The Innovator's Solution, Clayton Christensen