Corporations and the Financing of Innovation:

The Corporate Venturing Experience

May 3rd, 2002

External versus Internal Venturing

“Say … what’s a mountain goat doing way up here in a cloud bank?”

“Perspective. Use it or lose

it.”- Richard Bach,

Illusions

1. We sold the good stuff, and what’s left is a

headache.

2. Some of what's left deserves continued support,

some of what we have needs to be written off, and

oh!   if only we knew which were which.

3. We don’t believe we can influence the companies

we invest in.

4. All our companies need is more money.

The Top 4 Things VCs Say

“Unless we’re struck by a huge chunk of cash from outer space,

I’d say there’s very little hope.”

Warren Holtsberg, , Corporate Vice President Motorola VenturesRonald H. Peele, Vice President

AOL Time Warner VenturesPaul Gompers, Professor of Business Administration, Harvard Business School

Lisa A. Broderick, Managing PartnerConversus Group, Moderator

External versus Internal Venturing