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Considering VC for Your Business? Here's What You Need to Know. Three questions to ask yourself when deciding whether or not you should take an investment from a company.

By Sam Hogg

Opinions expressed by Entrepreneur contributors are their own.


In case you hadn't noticed, funding by venture capital firms has declined significantly in the last few years. But investments by big companies such as Google, GE, Intel, SAP and IBM have picked up the slack. In fact, the National Venture Capital Association reports that 2013 was a banner year for corporate venture capital, with companies participating in nearly 20 percent of the deals and 10 percent of the dollars invested.

What does this mean for startups? Besides cash, the upside of corporate capital is immediate validation of your idea by the marketplace, as well as access to talent, facilities and distribution from the company. However, for most entrepreneurs I meet, the thought of partnering up with an enterprise-level company is scary business. There's a fear of not aligning with the goals of a global corporation, missing out on a higher payday down the road and losing control.

To allay these fears, I find it helps to explain why corporations participate in venture funding in the first place. If you have an opportunity to consider investment from a company, here's what you need to know.

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