The Business Times
Firms need to be clear about what they are trying to achieve by setting up a corporate venture capital and be in it for the long haul, according to Morrison & Foerster partner Jake Robson in The Business Times article, “Downturn could pare appetite of corporate venture capitalists” (subscription required).
"The risk is that as soon as there's a downturn in the economy, the company sees that nine out of its 10 investments will fail. That's the nature of venture capital. It's very high risk.
"Some of these investments will look like they are now becoming a problem, as far as the balance sheet is concerned.
"They need to be very clear what they're trying to achieve; they need to be very clear that they can't take a short-term, dip-your-toes-in kind of approach ... They have to understand the nature of venture capital, the risks ... and they have to be in it for the long term," said Mr. Robson.