Corporate venture capital has important role in LATAM - corporates are able to embrace innovation and stay up-to-date with new technologies, while startups can get access to important knowhow in addition to the capital. For examples, as companies need to remain competitive and innovate continually, startups can serve as valuable deal sources, and allow companies to avoid building from scratch, as especially the initial stages are often the most challenging in new projects.

There are multiple potential marketing benefits for corporates in these investments, even when the initial funding may be relatively small. This perspective suggests that the corporate presence in the startup space can help project an image of innovation and engagement. However, it is essential to recognize that successful execution matters more than just having ideas, emphasizing the practical importance of startups' contributions to the corporate world.

Companies investing in CVC  target start-ups at various development stages, with minimum and maximum "tickets" (investment amounts) indicating their investment range. After analysing the distribution of these tickets for major CVC companies in Latin America, it's evident that the range largely depends on the fund's maturity. While 44% of corporations have a maximum ticket between $1 and $10 million, indicating a preference for moderate investments, more mature funds are investing higher amounts. The importance of having a flexible ticket range is emphasised, allowing companies to adjust to each investment opportunity and diversify their portfolio.

Key takeaways:

1. Benefits of CVC: Investing in startups through CVC is not only profitable but also promotes a culture of innovation within the investing company. For startups, securing investment from a renowned company serves as a significant endorsement, facilitating growth and rigorous testing of their business models. Ensuring alignment between startups and corporates requires involving various stakeholders, including business unit heads, specialists, engineers, and marketers. This approach ensures a thorough understanding of each party's capabilities and goals.
2. Image and Execution: While investing in startups can project an image of innovation and engagement for corporates, successful execution is more crucial than merely having innovative ideas. Startups play a practical role in bringing these ideas to fruition in the corporate world.
3. Areas of Investment
   According to BBVA:
   Sectors: Fintech is the leading sector, attracting 40% of companies. This is followed by  sustainability, and emerging technologies at 28%, and healthcare at 25%.
   Stages: Most CVCs prefer to collaborate with startups in their early stages but lean towards those with validated business models. Specifically, 47% invest in the pre-seed stage, 80% in seed, and 83% in Series A rounds.
   Technologies: Artificial intelligence (AI) is the primary technology of interest for 41% of CVC funds. Electric mobility and sustainability-related technologies each attract 31% of CVCs. Other areas of interest include payment technologies, early disease detection, and advanced data analytics.

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