Case Analysis : Corporate Venture Capital Of Eli Lilly And Company

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Introduction Colonel Lilly founded Eli Lily and Company in 1876, because he felt there was a lack of high quality medicine on the market at the time. He also felt the most medicines on the market were ineffective in the curing of ills. In the case “Review Corporate Venture Capital at Eli Lilly and Company”, describes the issues surrounding Eli Lily and Company venture capital arm by showing the struggles the company went through in establishing a corporate venture capital fund. It takes you through the choices that were made keeping in mind the benefits to Eli Lilly and Company as well as keeping the Venture Capital arm separated from the company. This allowed Eli Lilly and Company to benefit from its investments, and kept the…show more content…
1. Enabling Technologies: Tools and platforms that enhance the drug discovery and development process
2. Horizon Therapies: Emerging an novel therapies.

Lilly BioVentures utlizied Eli Lilly and Companies network for its deal flow. Once a potitail start-ups was picked Lilly BioVentures would assess the risks and check the star-ups background. It also became a resource for its portfolio start-ups, which was a plus for start-ups entering in to a deal with Lilly BioVentures. The goal of Lilly BioVentures was to operate like a venture capital firm as much as possible. Schalliol emphasized: “Our goal was to make money, to beat the corporate hurdle rate. We described ourselves as financial investors in areas of strategic interest.” Many of the deal that Lilly BioVentures entered in to was though a syndicate, which brought more funds form other venture capital firms as well as different expertise for the start-up. Through these types of deals Eli Lilly and Company was able to gain competitive advantage over its rivals.

Question 1: What is the Role of Corporate Venture Capital? Corporate venture capital (CVC) is the act of investing in companies with a variety of equity and licensing deals. CVC has two goals. First, is to improve the strategic position and core competence of the parent company. Second, is to create financial returns for the parent company through new products, procedures and services. These two goals and be best explained with the example form

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