Question

Which Of The Following Is Alternatively Called Corporate Venturing?

• A. Entrepreneurship
• B. Intrapreneurship
• C. Act Of Starting A New Venture
• D. Offering New Products By An Existing Company

Answer 1

The correct option is B

Intrapreneurship

Answer: The correct answer is option (B) – Intrapreneurship

Corporate Venturing

• Corporate Venture Capital is known as Corporate Venturing.
• It is the process where startup companies (external) receive corporate funds.
• Here the investing companies are very large companies whereas the companies which receive funds are innovative and small firms.
• In this Corporate Venturing, the large companies may acquire equity stakes, or get into joint venture agreements.
• The startup company could also receive strategic direction, expertise in marketing and management.
• Corporate Venture Capital is a subset of venture capital.
• Corporate Venturing emerged due to the rise of startup companies in the field of technology.
• Intel Capital and Google Ventures are a couple of examples related to Corporate Venturing.
• Even in the field of telecommunications and biotechnology, corporate venturing is popular.
• Corporate venturing is undertaken to achieve financial and strategic objectives.
• Corporate venturing is undertaken with the aim of accessing new resources, to enter new markets, and to use new technologies.

Intrapreneurship and Entrepreneurship – Differences

• Intrapreneurs may have better access to funds, manpower and resources.
• Intrapreneurs have lesser autonomy when compared to entrepreneurs.
• Intrapreneurs will have to operate in a system that is structured, whereas entrepreneurs will have room to build their own work culture.
• Intrapreneurship is relatively low risk, whereas entrepreneurship involves high reward as well as high risk.