How to Make Investments in Start-Ups Pay Off

Both healthcare delivery organizations (HDOs) and start-ups have much to gain from collaboration, but corporate venture capital investments need a clear strategy, focus, and operating model.

What separates the best corporate–start-up collaborations from those that get stuck in “pilot purgatory” is a clear and aligned strategy, the selection of the right candidates, and a shared road map for execution and scale. Companies should define success clearly, assess use cases and operating constraints, and choose the right operating model. By following these best practices, established corporations can successfully embrace the power of disruption. The alternative, one CVC executive noted, is to “be disrupted by someone else.”

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