Why is the Corporate Venture growing so fast? What are the keys?
More than a thousand major companies worldwide have launched a Corporate Venture Capital (CVC) fund , and, in the United States, they are taking part in one in five start-up financing rounds, supplying 20% of the amounts invested. There has been continued strong growth in the recent years. Around the world, they are taking part in rounds for a total of $ 83.5 billion in 2016 according to GCV, up 100% compared to 2014. CB insights assess that their share of financing representing $25.8 billion : why this massive increase? The author has been a CVC for 10 years. French version here
Corporate Venture Capital is a risky investment in innovative companies, like any venture investment, the difference is funds come from a large company. Unlike the investments of conventional venture capital funds that only respond to a financial logic, the return on investment of these funds is also strategic. And their strong growth in the US as in Europe shows that it works.
