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Running head: CORPORATE VENTURE CAPITAL 0

Corporate Venture Capital

Pang sun

Corporate Venture Capital

Corporate Venture Capital (CVC) is a type of strategic agreement that leads to capital exchange and therefore to strong assurances from each other. The main role of CVC is the main company to donate equity capital harmonized by the input from the industry to a pioneering start-up through an investment support dedicated to innovation of the industry (Rind, 1981).

The assessment in Lilly’s venture is that, initially the company only invested in other companies for strategic advantage and not just for financial return. But now they faced the issue of technological advancement which required them to make agreements with other large biotech industry, not as collaborators like they always did in with the other industries or potential acquire but as a productive influence, which was not their way of doing things. So according to Lilly employees with being engaged to with the large biotech industry, they believed that they would get more financial gain. So there were suggestions that it would be better if they could only gain competitive advantage. This later changed their way of viewing things and decided to interest them in more financial gain than earlier. So it was later settled that cooperate venture capital was the ideal investment for the company than what the company initial business. This later worked against them and that is the issue they are trying to rectify.

It would be better for Carroll would take advantage of the investment opportunity. Though Protagonist is in a different state it is the only company that has more advanced technology and has Lilly company interest at hand. It is advisable if Carroll would set up a branch in Protagonist state so as be much nearer and still maintain its original company at its previous state. The issue with investors it would not be hard for the company since it already had built an image for itself (Lantz, Sahut & Teulon, 2011)

References

Lantz, J. S., Sahut, J. M., & Teulon. (2011). What is the Real Role of Corporate Venture Capital. (2011). Retrieved from http://www.craig.csufresno.edu/IJB/Volumes/Volume%2016/V164-5.pdf

Rind, K. W. (1981). The Role of Venture Capital in Corporate Development. Retrieved from https://www.jstor.org/stable/pdf/2486049.pdf?seq=1#page_scan_tab_contents