Industry Ventures works with Corporations to maximize the value of their venture capital investments. The strategic, operational, and financial goals of corporations can move faster than their venture capital investments can be exited. Through a secondary transaction, Industry Ventures can help corporate investors properly manage their capital and shareholder value by offering liquidity today for positions that may otherwise take years to become fully realized.
Corporate Venture Programs
Venture capital investing is a strategic way for corporations to outsource R&D or gain insight into technology trends that impact its future business. Corporate venture arms such as Intel Capital have been historically quite active in this arena, consistently ranking as one of the top ten most active venture capital investors in the industry. For many reasons, corporations find themselves in various situations where a secondary firm such as Industry Ventures is extremely helpful.
Industry Ventures can work with corporations to monetize illiquid investments that are no longer strategic to the company, or to spinout the venture portfolio into a Limited Partnership where the corporation becomes a minority investor.
Direct Secondary Purchase
Industry Ventures can purchase some or all of the investments within a corporate venture portfolio. In this situation, Industry Ventures works with the venture team to value the equity stake in each portfolio company and pays the corporation cash for its illiquid investments. Industry Ventures then takes ownership of the private stock and manages the investments as if it were the original investor.
Corporate Venture Spinout
Should the corporation chose to exit the venture business, Industry Ventures works with the company to arrive at a structure for a new fund sponsored by Industry Ventures as a lead investor.
Results
Monetizes illiquid investments.
Divest non-core investments and free up investment capital for new portfolio companies.
Exit the venture business by spinning out its venture team. They can retain a minority position if desired.
New investors support attractive companies going forward with additional capital and human resources.
Working with Industry Ventures
Industry Ventures has a dedicated team that works closely with corporations to complete a timely transaction. Our experience and knowledge allows us to move through the process quickly—from portfolio evaluation, to the issuance of a Letter of Intent (LOI), through final due diligence, legal document preparation, and deal consummation.
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