This study examines the interplay between governance structures and investment objectives in Corporate Venture Capital (CVC) activities, a strategy used by corporations to explore entrepreneurial opportunities through minority equity investments in startups. While CVC offers the potential for acquiring innovative technologies and knowledge, its effectiveness is often compromised by early termination risks stemming from misaligned governance and investment goals.

Building on existing literature, this research identifies a gap in the analysis of CVC units' distinct governance structures and investment objectives. To address this, semi-structured interviews with CVC representatives were conducted, focusing on three core areas: the primary investment objectives of CVC activities, prevalent governance structures, and the interaction between these variables.

Key findings highlight the importance of aligning governance structures with investment objectives to mitigate risks of operational challenges and premature terminations. A nuanced classification of governance structures based on vertical and horizontal autonomy was developed, alongside the identification of diverse governance characteristics. These characteristics were linked to different types of investment objectives, distinguishing between explorative objectives aimed at innovation beyond the corporation's core business and exploitative objectives aligned with the corporation’s existing operations.
The study preliminary reveals the moderating role of CVC governance structures in influencing the impact of corporate culture on open innovation within CVC activities. Specifically, while low corporate culture on open innovation can undermine the sustainability of CVC activities, certain CVC governance arrangements can mitigate this negative effect, thereby sustaining effective CVC operations.

This research contributes to the literature by providing actionable recommendations for structuring CVC units effectively, aligning some key governance characteristics with corporate innovation strategies and investment objectives for CVC activity. It offers practical implications for ensuring sustainable CVC activities and opens avenues for future research on how the governance structures of CVC units can mitigate the negative impact of a low corporate culture of open innovation on CVC performance.