---
id: "prereq-cvc-basics"
type: "prereq"
source_timestamps: ["§ Introduction"]
tags: ["finance", "venture-capital"]
related: ["concept-embedded-cvc-tensions"]
reason: "Required to understand why CVCs face unique tensions compared to traditional, purely financial VC firms."
sources: ["ecosystem"]
sourceVaultSlug: "hbr-seg-ecosystem"
originDay: 11
articleStem: "hbr-cl-81-corporate-vc-funds"
sourceUrl: "https://hbr.org/2026/03/what-successful-corporate-venture-capital-funds-do-differently"
sourceTitle: "What Successful Corporate Venture Capital Funds Do Differently"
---
# Corporate Venture Capital Mechanics

## Prerequisite

The article assumes you understand the basic premise of a **Corporate Venture Capital (CVC) fund**: a unit *within a large corporation* that invests corporate funds directly in *external startup companies*, typically pursuing **both strategic** (innovation, market intelligence) **and financial** returns.

## Why it's required

The dual strategic+financial mandate is precisely what makes CVCs different from traditional, purely financial VC firms — and it is the source of the unique tensions catalogued in [[concept-embedded-cvc-tensions]]. Without this baseline, the article's core problem (balancing strategic insight against financial returns) doesn't parse.