In this episode we talk about corporate venture capital: Why should you do it? How should you do it? And what should you expect from it?  

Traditionally, established corporations have tended to view start-ups as undisciplined and naive, while start-ups might dismiss incumbents as stodgy and behind the times. It’s (mostly) not like that anymore, as both sides increasingly recognize each other’s strengths and the value of collaborating. In fact, large companies are now involved in about a third of all venture deals—an all-time high. More than three-quarters of the Fortune 100 are active in the venture capital (VC) space and half have a VC arm set up as a subsidiary, not including companies with internal VC business units. 

Joining us to discuss this innovation and investment landscape are Matt Banholzer and Sid Ramtri. Matt is a partner in our Chicago office who heads up innovation at McKinsey and is a leader in our growth and LEAP business building practices. Sid is an associate partner in our São Paulo office and a core member of our private equity and venture capital practices.  

Related insights:  

How to make investments in start-ups pay off

How to build a unicorn: Lessons from venture capitalists and start-ups

The Ecosystem Economy

Join our LinkedIn community of more than 90,000 members and follow us on Twitter at @McKStrategy. 

Explore our collection of Inside the Strategy Room episode transcripts on McKinsey.com

In this episode we talk about corporate venture capital: Why should you do it? How should you do it? And what should you expect from it?  
Traditionally, established corporations have tended to view start-ups as undisciplined and naive, while start-ups might dismiss incumbents as stodgy and behind the times. It’s (mostly) not like that anymore, as both sides increasingly recognize each other’s strengths and the value of collaborating. In fact, large companies are now involved in about a third of all venture deals—an all-time high. More than three-quarters of the Fortune 100 are active in the venture capital (VC) space and half have a VC arm set up as a subsidiary, not including companies with internal VC business units. 
Joining us to discuss this innovation and investment landscape are <a href="https://www.mckinsey.com/our-people/matt-banholzer">Matt Banholzer</a> and <a href="https://www.linkedin.com/in/sidramtri/?originalSubdomain=uk">Sid Ramtri</a>. Matt is a partner in our Chicago office who heads up innovation at McKinsey and is a leader in our growth and <a href="https://www.mckinsey.com/capabilities/mckinsey-digital/leap/overview">LEAP</a> business building practices. Sid is an associate partner in our São Paulo office and a core member of our private equity and venture capital practices.  
Related insights:  
<a href="https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-to-make-investments-in-start-ups-pay-off?">How to make investments in start-ups pay off</a> 
<a href="https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/how-to-build-a-unicorn-lessons-from-venture-capitalists-and-start-ups">How to build a unicorn: Lessons from venture capitalists and start-ups</a> 
<a href="https://www.mckinsey.com/featured-insights/mckinsey-on-books/the-ecosystem-economy">The Ecosystem Economy</a>  
Join our <a href="https://www.linkedin.com/showcase/mckinsey-strategy-&amp;-corporate-finance/?viewAsMember=true">LinkedIn community</a> of more than 90,000 members and follow us on Twitter at <a href="https://twitter.com/McKStrategy">@McKStrategy</a>. 
Explore our collection of Inside the Strategy Room <a href="https://www.mckinsey.com/itsr">episode transcripts on McKinsey.com</a>

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We all know the world is moving faster. We also know that as upheaval becomes the norm, vast business opportunities will be within the grasp of the extraordinary few.  But it takes bold people and courageous approaches to seize those opportunities and create value.
In each episode of our weekly podcast, we sit down with the world’s highest-performing CEOs, CFOs, innovators, and McKinsey experts and discuss how they build the courage, clarity, conviction, and cohesion that allows their businesses to win by moving faster than the world around them.

Corporate venture capital: Why should you do it? How should you do it? And what should you expect from it?

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