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> 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 somethi

• yowlingcat 6y ago
  > 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.
• amitport 6y ago
  It is rare I think because of the parent company's CEO and founders don't like to really lose control to someone else. 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)