SR One
This article was originally published in Start Up
Executive Summary
SR One is a rare example of a corporate venture capital fund, with this one the product of SmithKline Beecham.
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Several forces--rapid technological obsolescence, the impact of information technology on health care, merger integrations, and the need for double digit revenue growth--have caused increasing numbers of large pharmaceutical and medical device companies to create new corporate venture capital groups. But compared to traditional VC firms, whose only goal is to make money for limited partners, corporate VCs have a heavy agenda. They must choose portfolio companies while balancing often-competing goals of strategic benefit and financial return.
Return vs. Strategy
Corporate venture funds walk a fine line between investing to access cutting edge technology and investing for return. But now SR One, SmithKline Beecham's in-house venture fund, can have it both ways. With venture firm Euclid Partners, SR One has formed a new $200 million fund, EuclidSR Partners, with SmithKline Beecham contributing a significant amount of money as a limited partner.
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