15 March, 2022
Why CVC’s share of the capital pie is growing
Venture investment has grown more than ten-fold over the last decade, and corporate investors' share of that has gown even faster. In 2011, only one in 10 deals included a corporate investor. Now it's one in five.
Sifted has launched an interesting video on the growth of Corporate Venture Capital: https://sifted.eu/articles/cvc-share-startup-investing/?utm_source=sailthru&utm_medium=email&utm_campaign=future_proof&utm_content=15-03-2022&utm_term=would-like-futureproof-newsletter
CVC-backed investments now represent more than a fifth of all global venture capital investment value — up from 11% a decade ago, according to consultants Bain & Company’s 2022 Global M&A report.
It is well known that venture capital investment globally has been growing fast — from $54bn in 2010 to $503bn at the third quarter of 2021, according to Bain (and up to $643bn at the end of 2021 according to Crunchbase).
But CVC’s share of that has been growing even faster. Between 2010 and 3Q 2021, total VC investment value grew at a compound annual growth rate of 22%, compared to 31% CAGR for CVC-backed deal value.
Not bad for what is often considered VC’s poorer cousin — and in line with the strides Sifted has seen in investment and portfolio management sophistication and maturity on the part of corporate innovation efforts over the last decade.