Abstract

Corporate venture capital (CVC) and independent venture capital (IVC) differ in their objectives. CVC is more about its own strategic intent and strategic alignment with the parent company, than direct financial returns from the entity receiving investment. In contrast, IVC pursues financial returns; its strategic intent is usually absent or vague. At Huawei, the strategic intent of CVC is clear: to enhance the core competencies and overall value of the parent company through its strategic and business alignment with the parent company. The goal of CVC is not to solely focus on maximizing the returns of any individual entity that makes investment. Huawei strictly controls the objectives and boundaries of its CVC projects, and prohibits unfocused investment, with the intention of achieving big profits in core business rather than smaller wins across a wider area.

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