As the funding environment for startups remains challenging, corporate venture capital (CVC) has become a popular — and for many — at first glance, an attractive option. According to Dealroom data, CVCs have been involved in one in four European startup deals so far this year, and account for over a quarter of startup funding.
Despite this, the inner workings of how CVC units operate remains widely misunderstood by many outside the industry — and can make them a bad fit for some startups.
So, if you’re a founder raising capital, here are four reasons why you shouldn’t take CVC money.
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