> So the only means to have a situation where you don't risk bigco for a single department is not making it a department. Make it a Ltd. in a holding or something.
I was thinking that as well. Can anyone explain why this isn't common practice?
I was thinking that as well. Can anyone explain why this isn't common practice?
If you squint a little bit, this is exactly what the whole premise of corporate VC is. Take the funds that you'd allocate to long shots and operate as a VC would, provide strategic distribution where you can add value as a bigco, etc. Problem here is that compared to pure VCs you risk portfolio conflict in a different way that may not be as attractive to founders, but at least it's viable.
A child company is not easily managed (and they shouldn't, but that's scary and risky by itself. The parent company need to have the know-how of an a serial startup builder investor)