Well, corporations are launching new products all the time. Each new product can be thought of as a
VC investment in a new startup.
However, the VC investors have to share the winnings with the founders, while the large corporations get to keep basically all of it. Oh, sure, the corporation might pay out bonuses and promotions, but this is a small fraction compared to what startup founders get to keep.
Thus, VC investors start out with a built-in disadvantage that they have to overcome: call it "founder drag." It's sort of like the race between active funds and index funds. The actively-managed funds have to overcome their higher expense ratio just to get back to even.
However, the VC investors have to share the winnings with the founders, while the large corporations get to keep basically all of it. Oh, sure, the corporation might pay out bonuses and promotions, but this is a small fraction compared to what startup founders get to keep.
Thus, VC investors start out with a built-in disadvantage that they have to overcome: call it "founder drag." It's sort of like the race between active funds and index funds. The actively-managed funds have to overcome their higher expense ratio just to get back to even.