Venture Capital funds seek to invest in science/technology based ventures or startups, with a great potential for scaling at a regional and global level, in order to support their growth and implement the strategic plan defined by the entrepreneurs. The objective of VC investors is to make the investment profitable in the medium term (between five and ten years), finally exiting the project through an exit (through the sale, opening of the company on the stock exchange, among others). VC investments, in general, have a high level of risk, but at the same time a high return potential. Therefore, VC funds generally invest in a significant number of companies to diversify their risk. They do this through minority ownership stakes, so it is common to find several investors in the same startup.

One of the main things to take into consideration is that a CVC is not CSR or just a startup contest, it is something strategic. Therefore, if this option is taken, time, resources and people must be dedicated. On the other hand, as this is a risky topic, there must be room for trial and error. For the same reason, it is advisable to start small, with a few startups, instead of immediately setting up a large fund. Other characteristics that a CVC should have are autonomy, flexibility and independence from the core business. Even so, it is advisable for it to be below the board of directors. Another relevant point is to understand that startups, under this structure, are partners and not just suppliers. Therefore, it is important to set up a linkage mechanism between the business and the startups to outline their work together. Finally, it is crucial to measure what is being done, not only the startups themselves, but also how they are impacting the business.

One of the main aspects evaluated is the team. For this reason, professional entrepreneurs are sought, with experience in the industry in which they are immersed and who, above all, are open to receiving advice from investors. Another point that is reviewed in detail is the product; the technology behind it, if it is scalable, if it solves a problem and what is its value proposition. It is also important to establish whether the product is in a growing market and that it is at least regional. Traction is another factor to be considered. Both the maturity of the business and the market response, i.e., whether there is a demand for the product, are reviewed. Finally, the funds look for the startup to have an element that makes its business unique.