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VCaaS emerging as a model to link corporations with venture capital firms

McKinsey & Co. reports that only 21 percent of surveyed executives say they have the “expertise, resources and commitment” to achieve new growth in the next 12 months. If that’s the case, where do companies turn for their new ideas? It’s frequently start-ups through the open innovation model.

In this recent article in Forbes, Anis Uzzaman, a member of the organization’s Finance Council and a General Partner and Chief Executive Officer at Pegasus Tech Ventures, writes about a new investment model called VCaaS, short for venture-capital-as-a-service. The concept is that venture capital (VC) firms using the model accept capital from corporations instead of from institutional investors. By establishing long-term partnerships with global corporations, they collect corporate capital and invest it on their behalf in innovative start-ups. This can create a winning relationship between the corporation, its VC partners and the start-ups in which they invest.

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