Corporate funds: the specifics of investments in startups

In this edition, a specialist in corporate innovation, the private venture company founder Dmitry Maslennikov, will tell us about the corporate funds and the specifics of investing in startups. The international business network for startups and investors InnMind and the expert channel TetraSales have developed a detailed online guide for startup founders “Startup from A to Z”, where the best experts, investors and successful entrepreneurs share their experience and help to deal with complex issues of developing business, launching and growing startups.

In the interview Dmitry Maslennikov answered the following questions:

  • What is the corporate funds peculiarity? How do they differ from venture funds?
  • How do corporate funds choose projects for investment?
  • What startups should turn to corporate funds? Are there any general requirements, for example, at the project development stage or does it all depend on the needs of a particular corporation?
  • How can a startup prepare better for communication with a corporate investor?
  • How do corporate funds evaluate startups at the early stage?
  • What difficulties arise in the assessment?
  • Who usually evaluates a startup? An internal fund team or external experts?
  • The founders often have a fear of turning to corporate investors, because they completely lose control of their project. Is it true?
  • Does it turn out that instead of working on his/her business, the founder becomes one of the corporation’s employees and his project becomes a part of a large company? How do the founders themselves react to this?
  • How well is developed the corporate financing for startups in Russia?

The fears and mistakes of startups are an infinite topic, and we also talked about this with Dmitry. Considering that corporate funds are interested in startups that will cooperate with their company in future, there is a fear that the startup founder will lose control over his company, or it simply will become a part of the corporation, and the founder himself will become an employee.

Dmitry confirms that such cases happen, but everything depends on the founder. To avoid this, you must carefully review the documents that you sign and determine for yourself who you want to be: an employee or your own company founder, and to build your strategy on this basis.

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STARTUP FROM A TO Z — an online guide to creating and developing a successful startup. Made by an international business network for startups and InnMind investors.

InnMind brings together professionals in the innovation field, helps startups to find investors, mentors or experts, gives tools and sources for the innovative startups growth and development, helps investors with project expertise and due diligence.

“Startup from A to Z“ partner and host Eugene Romanenko is the expert channel Tetrasales founder, a new online media for entrepreneurs and people who think out of the box.