Despite all these merits, Corporate Venture Capital has its problems as well. The most apparent problem with Corporate Venture Capital concerns the culture gap: that between a large corporation and start-ups. While start-ups have typically been fast-moving, tolerance-risk-taking, and innovation-driven, corporations tend to be relatively structured, risk-averse, and, by necessity, process-oriented. All these make cultural gaps bridged quite challenging. It requires even the best communication and collaboration.
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