Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Corporate VCs can leverage their position in the industry to sign up good startups with an investment. The corporate VC brings a network of partners, distribution channels, a brand, an existing product line, and more.\xa0 An investment can leverage their research dollars and achieve more than if they build it themselves. The pharmaceutical industry recognized this advantage years ago and now primarily invest in funding successful biotech startups rather than doing all the research and development themselves. This model works well where R&D is expensive and there are many potential avenues to take.\xa0 There is a cost of setting up a corporate VC arm, but this investment can be spread across many startups. If used extensively, it can become a core competence for the company. To be successful at this, start with a clearly defined set of goals. Gain commitment from the corporation. Align the compensation of the corporate team to that of the performance of the investment. Those companies whose growth has stalled for some time may be more open to committing to it. Those facing a new wave of technologies may find this a better way to engage. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0 For Feedback please contact info@tencapital.group\xa0\xa0 Music courtesy of