Asked by Mobolaji Ajewole on May 18, 2024

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Although corporate venture capitalists look for promising young companies on the verge of a spike in sales like traditional venture capitalists,corporations tend to be more risk-averse and specialized.

Corporate Venture Capitalists

Investors affiliated with a corporation that provides capital to startup companies with potential for high growth, often in exchange for equity and with strategic interests in mind.

Risk-Averse

A characteristic of preferring to avoid risk, opting for safer, more certain outcomes over potentially higher yet uncertain returns.

Promising Young Companies

Emerging businesses that show potential for significant growth and success in their industry.

  • Determine the distinctive qualities and motivations belonging to different investor types, encompassing angel investors, venture capitalists, and mezzanine investors.
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JH
Jason HoàngMay 22, 2024
Final Answer :
True
Explanation :
Corporate venture capitalists are more likely to seek out companies that align with their corporate strategy and goals, and may focus on specific industries or technologies. They also may have more stringent criteria and due diligence processes compared to traditional venture capitalists. These factors contribute to a more risk-averse approach.