CVC is abbreviation of corporate venture capital. It’s a form of a venture capital launched by an industrial company with fund on hand. Quite many companies have established the CVCs for this few years. Though the companies which make the CVC are relatively big ones thanks to the necessity of ample funds.
I read an article last week that a middle sized company created the CVC at the beginning of this year. The company president told a reporter about the CVC that it would be OK even if all of the fund will be lost. He thinks that the fund has that kind of feature.
He was strongly opposed at the board meeting by outside directors as it would not be able to exclude risks. He has tenaciously persuaded them as it would be impossible to create new business with our own technology.
The company made an ambitious mid-term business plan last year, in which the sale revenue would rise by 1.5 times from the last fiscal year’s sales. It is a manufacturer, however, it can’t develop material from scratch.
The company has kept seeking seeds of new business for a decade. However, it failed. Now there are lots of companies in the same situation in Japan. A maxim says that a drowning man will catch at a straw. It expresses the current innovation situation in Japan.