

Osaro is a fast-growing startup that is using artificial intelligence reinforcement learning technology for robotics applications in industrial environments. Innotech is a publicly listed systems integrator with customers in the advanced electronics manufacturing industries. One case study which outlines the mutual benefits derived from the VCaaS model is the partnership between Japan-based Innotech Corporation and San Francisco-based Osaro. Pegasus has partnered with corporations including ASUS and SEGA. Touchdown has partnered with corporations such as Aramark and 20 th Century Fox. Firms including Touchdown Ventures and Pegasus Tech Ventures are providing startups with both flexible check sizes and business engagements with strategic corporate partners. This model, known as Venture Capital-as-a-Service (VCaaS), provides an optimal mix of capital and business value to startups through corporate fund networks. Some startups look at these partnerships as a potential exit strategy in the future, while corporations may look at minority investments as a test for future majority ownership stakes.Īs a way to address this new market dynamic for startups and corporations, a new venture capital business model has emerged. However, there may be a downside if this relationship limits your flexibility to partner with other companies. The benefit of this option is that startups can usually secure both partnership and the capital they are looking for. Some of these corporations such as Intel or Google have their own corporate venture capital funds for this purpose. If startups are mainly focused on how they can scale their business, then they can look to local and multinational corporations for funding and partnership opportunities. Still, traditional venture capital firms may or may not have the knowledge and expertise to negotiate strategic corporate partnerships. Traditional venture capital firms typically write the biggest checks and they have significant resources to support startups in their networks. The best entrepreneurs have many options when it comes to financing their business - whether it’s angel funding, crowdfunding, accelerator funding, or venture funding. There have never been more sources of funding for startups than there are today.
