Corporate Venture Capital

Globally, Corporate Venture Capital (CVC) Groups participated in $52.95 billion of funding across 2,740 deals in 2018, that represented 23% of all VC deals (CB Insights 2019). This continues a trend of growth for CVC deal activity as a percentage of overall VC deal activity. The main benefits of creating a professional Corporate Venture Capital Program fall into 4 broad areas:

Gain Market Intelligence

• Identifying new industry trends

• Anticipating changes in consumer behavior

• Understanding how different actors interact in the fast-changing digital ecosystem (startups, developers, suppliers, consumers)

Foster Disruptive Innovation

• By exposing internal resources (R+D, Product Marketing, Sales) to the challenging strategies of portfolio companies

• By witnessing first hand how new challengers are reshaping your industry

Hedge Business Bets

• Creating an environment for ‘hedging bets’ in key business areas, a concept that had been found to be impossible in an internal corporate set-up

• Thwarting competitive threats before it is too late

Obtain Financial Returns

• Investing in deals that can be profitable, not only from learning opportunities, but financially as well

• Allocating free cash flow in a strategic and potentially profitable manner