WEBVTT

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Considering corporate
venture capital?

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Understand how investors
and target companies

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can structure smart deals
and lasting partnerships.

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Corporate venture capital offers
companies a unique opportunity

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to invest in startups
and other companies,

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either a standalone investments

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or as part of a broader
series of transactions.

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Public and late-stage
private companies alike

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have shown an increasing
appetite for these strategic

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investments and acquisitions
to drive growth and innovation.

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Yet investors and target companies
both need to consider

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the benefits and potential risks
of this type of investment.

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For companies looking to invest,

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corporate venture capital
presents a strategic path

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to gain early insights

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into potential commercial
partnerships or acquisition targets.

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By investing in other innovative
companies, public companies

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and late-stage privates
can access new technologies,

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expand their market reach,

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and strengthen their
competitive advantage.

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As for targets,
they can tap into their investors

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resources and connections
to scale their business.

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Having a reputable company
on a target’s cap table

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can also enhance
credibility and brand strength.

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Negotiating side letters
is crucial for investors

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to ensure fundamental protections
like information rights,

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first look opportunities,

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and participation rights
in future financings.

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On the other hand, targets
should focus on risk management.

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They should weigh the benefits
of the partnership

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against the need to
protect proprietary information.

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The presence of a major player
on the cap table will influence

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perceptions of other
potential acquirers

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or partners,
for better or for worse.

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Experienced counsel can help
navigate the push-and-pull dynamic

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between investors and targets,
ensuring that both parties

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achieve their strategic objectives
while mitigating risks.

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I’m Alex Kassai,

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a partner at Latham,
and I’ve been advising

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corporate venture capital investors
and high-growth private

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and public companies on complex
transactions for nearly 15 years.