Corporate venture capital firms provide funding to startup companies during various phases of development. Each phase has its own financing requirements and CVCs will often indicate the stage of financing needed and the type of investments they prefer to make. Later stages of financing usually mean less risky investments and thus investment in these companies typically cost more money due to higher company or product valuations. Investing in startup companies hope to provide CVCs with a return on investment within 4–7 years whereas investments in established companies are expected in a shorter 2- to 4-year period.
