Tag Archives: Product Development

Financing Business Capital from Large Corporate Investors

corporate venture capital

Private companies may invest in a small or young company either as a money-making deal or to access new technology or products.

Greig Altieri and his partners founded Vascular Control Systems in San Juan Capistrano, California, in 1998, to develop minimally invasive tools to treat a common female disorder characterized by excessive bleed­ing. From the beginning, they knew their most likely exit strategy would be acquisition by a large medical company. Medical technology can take years to develop, is riskier than many start-ups, and requires specialized knowledge to comprehend.

Even a typical professional investor or venture capitalist is unlikely to understand well enough to feel comfortable with such investments. So once Vascular Control Systems founders secured their intellectual property, they focused on venture capitalists who special­ized in the medical device field and large corporations active in the medi­cal and women health industries. One of their early and continual contacts was with Johnson & Johnson Development Corp.