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of the dot-com era in 1999 brought the emergence of corporate venture capital as a major source of funding to the private equity markets. Corporate venture investments peaked in the third quarter of 2000 with 608 deals totaling a combined $4.9 billion. A few of the top corporate venture capital investors of 2000 included Nokia Corporate ($500 million) Authentic Toronto Maple Leafs Jerseys , Oracle Corporation ($400 million), Intel Corporation ($300 million), Sun Microsystems, Inc. ($300 million) and Daimler Chrysler ($100 million).


But as we all know Toronto Maple Leafs Jerseys For Sale , the dot-com balloon burst in the second half of 2000. By the second quarter of 2001, corporate venture capital activity dropped to just 172 deals worth approximately a combined $845 million. Not surprising because corporations historically jump into venture investments when times are good and exit quickly when times get rough. However, when compared to past decades, corporate venturing investment activities are still significant. Why? Though companies can readily pull back when necessary Cheap Toronto Maple Leafs Jerseys , they understand the value in pursuing new opportunities with strategic partners. Consequently, industry pundits expect corporate venture investment activities that show a financial return in addition to a strategic fit to rebound over time as economic conditions improve.


But what about corporate venturing for emerging growth companies -- companies that are not awash in cash or the beneficiary of an inflated stock value to use as currency for equity investments? Is corporate venturing available to them and is cash the only currency used for investment?


Definition


Corporate venturing provides an alternative to traditional methods of growing a company and is an alliance formed between two [or more] independent companies. Typically, a larger, more established company invests resources directly into a smaller company Jake Gardiner Maple Leafs Jersey , and through the venture the two companies share the commercial risks and resultant rewards for mutual benefit.


Many companies due to their size, cash availability or even their structure can find difficulty in allocating appropriate funds, time or internal resources to developing products or services in-house.


A smaller company entering into a strategic alliance with a larger company can often times achieve a faster and higher growth rate than a company electing to move ahead independently. While larger companies frequently find the strategic alliance a more effective means of nurturing business growth outside of organic development and the more risky, expensive route of mergers and acquisitions.


Benefits


Is your emerging growth company interested in accessing funding and resources from another company to help revenue growth? If so Morgan Rielly Maple Leafs Jersey , your company could benefit from a strategic alliance that brings:


Short or long term financing


Access to sales, marketing and distribution channels


Management and technical skills


Manufacturing facilities


All of which a larger already established company may be able to offer your company in exchange for a negotiated agreement to share in the planned development of current or future products. Therefore, your company must be willing to:


Enter into a detailed strategic alliance with the corporate partner


Agree to work productively and openly with the company


Is your emerging growth company successful but looking for innovation, additional channels of distribution or technical know-how to expand and grow your business even further at an accelerated rate? If so Tyler Bozak Maple Leafs Jersey , perhaps your company can benefit from:


Access to external talent