Companies give start-ups billions in venture capital

Looking past the economic downturn, big companies are charging back into venture capital, seeking new technology and teaming with start-ups and venture firms.

In the highest numbers since the dot-com-boom era of 2000 and 2001, corporate venture capital funds last year invested in 21% of 3,900 start-up deals and put up 8% of the total $31 billion in venture money that was poured into young firms, reports the National Venture Capital Association (NVCA) and PricewaterhouseCoopers.

Corporate venture capital is down slightly in the first quarter because the economic climate has made companies more cautious. But as the U.S. market matures and the global economy grows, the venture arms of hundreds of U.S. and overseas companies — IBM (IBM), Novartis (NVS), Samsung, Intel (INTC), NTT DoCoMo and others — are searching harder for promising start-ups in technology, energy, the life sciences and other sectors.

By Edward Iwata, USA TODAY

Full Story: http://www.usatoday.com/money/smallbusiness/2008-05-19-venture-capital-corporations_N.htm