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Corporate venture capital

A large company invests in a smaller one that could help its own business, in return for shares. You get money plus the corporate's contacts and know-how, but you share your ideas with a possible competitor.

E2 · Significant dilution and investor rightsNot FCA regulatedLast checked: 7 October 2026
Cost band
E2
Significant dilution and investor rights
Speed
6 months or more
Amount
From £1m
Term
Usually 3 to 5 years
Ownership
Gives up shares
Security
  • Shares

How it works

Corporate venture capital (CVC) is a kind of venture capital that comes from a large company's own money, not from a fund of outside investors. The corporate invests in businesses that are relevant to it, usually because they can:

  • help it understand how its market is changing
  • reach new customers through its distribution
  • bring it new technology

It invests in return for shares, and expects a strategic benefit as well as a financial return. If your business will not help its strategy, it is unlikely to invest.

Compared with ordinary venture capital, deals often take two to three months longer, and the relationship is often shorter. Either side can make the first approach. Accelerators and meet-ups can help.

Upsides and downsides

Upsides

  • Money plus the corporate's expertise, networks and distribution
  • Can open doors to customers and partners
  • The corporate may later want to buy your business

Downsides

  • You give up shares, and growth is not guaranteed
  • You expose your intellectual property to a company in your market
  • Negotiations are often long and detailed

Risks

  • The corporate's strategy changing, or your lead contact moving on
  • Terms that block other buyers or partners
  • Losing control of ideas that are not properly protected

What it costs

How it is priced
Shares in your company, plus any rights agreed in the deal
Costs that are easy to miss
  • Legal costs for the investment
  • Blocking rights and intellectual property terms in the deal
  • Time on long, detailed negotiations

£1 million or more, depending on the business.

Have an offer? Dilution calculator: see what you would own after each round

Does it fit?

Could fit when

  • You have technology or a product that could help a large company in your market
  • You are growing fast and need £1 million or more

Unlikely to fit when

  • Your intellectual property is not protected

Who can use it

  • Business types: Private limited company, Public limited company
  • Open to businesses with no sales yet
  • You must show how your business helps the corporate, through market insight, market reach or technology
  • Any stage and any sector, depending on the corporate's strategy

Am I ready?

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Next to prepare
  1. Strategic fit
  2. Intellectual property protected
  3. Pitch deck

Regulation and protections

Not FCA regulated

A private deal between your company and the corporate investor. Your protection comes from the investment documents, so take legal advice, especially on intellectual property and blocking rights.

Types of provider: Corporate venture arms of large companies.

Also consider

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Sources

  1. British Business Bank: Corporate venture capital (CVC) · checked 7 October 2026