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Started and organized by professionals involved in Corporate Venturing in 2003,
SVA has 306 members representing 98 global corporations. It is a not-for-profit
registered professional trade organization. These corporations represent a very
broad diversified range of business spectrum. They are influential leaders in
information technologies, telecommunication, industrial, health sciences, energy
development, shipping and transportation sectors of the global economy.
The purpose of this association is to provide a platform for
networking, learning and promotion of corporate venturing professionals.
They have come together to discuss their unique and particular
issues, share with compatriots and establish a learning and networking
association to enhance their professionalism.
Backgound
Corporate venturing in private equity reached its peak in year
2000, when nearly 17% of all venture capital investment was done
by CVC. Since then CVC activity has receded, it has become more
aligned with the strategic goals of the corporation. Expert studies
has shown that CVC activity is very beneficial for corporated
growth and innovation, if properly organized and harnessed. SVA
members have coalesced, embodied in same belief, they are committed
to making their organizations more effective and their profession
better appreciated and recognized. Corporations need to increase
their awareness of the impact of CVC and the importance to their
organizations. CVC professionals need to be more effective in
articulating the benefits of CVC and find consistent support from
the top management of the corporation for CVC activities.
New Challenges
The most successful companies (Intel , Cisco, Johnson &
Johnson) are those that have developed aggressive venture strategies
and have made ventures critical components of their strategic
and operating success. For today's corporations, traditional internal
expansions, efficiency improvements and "synergistic"
acquisitions are no longer sufficient sources of growth in most
industry segments that had grown crowded and highly competitive.
The new challenge is to search for emerging opportunities, new-business
creations that would meet the unmet, under served needs of customers
in emerging markets.
New Opportunies
In ventures, large and midsized companies can discover new opportunities
for growth not attainable with internal resources. Innovation
and new business creation has become central to achieving strategic
and financial objectives of market champions. "Silicon Valley
wouldn't exist if big companies couldn't identify technology and
market opportunities and move with speed to capitalize on them,"
says Mike Moritz of Sequoia Capital Partners.
External venture investing in new technologies and emerging markets
has become a vital component of corporate strategies in the new
economy driven by small innovative firms. Partnerships between
small innovative firms and large corporation are mutually beneficial.
While entrepreneurial companies can identify technology and market
opportunities and move faster to capitalize on them, they can
achieve enormous leverage through technology and distribution
agreements with large global corporations.
Filling a Need
In the United States in 1994, only 2% of venture capital investments
was corporate venture capital, but in 2000, corporate venture
capital accounted for 17%, nearly $20 billion. Although declining
since 2000, corporate venture capital remains a vital alternative
for accelerating corporate growth. CVC functions must be evaluated
continuously to maximize results and perceive its relevance to
the corporation.
With this as the background has emerged the need for an Association
that is organized and managed by corporate venture professionals
to address their particular issues and provide a platform for
learning, networking and growth.
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