TLDR:
Key Points:
- 90% of corporate venture capital funds invest in Series A startups.
- 40% of surveyed CVCs invest in B2B companies focused on AI and machine learning.
A recent survey by Mountside Ventures found that the majority of large corporate venture capital funds are investing in startups at the Series A stage, with 90% of CVC funds participating in Series A rounds. The report also highlights a growing trend in VC investment in artificial intelligence startups, with around 40% of surveyed CVCs investing in B2B companies focused on AI and machine learning.
The survey of 100 global CVC investors, which collectively manage more than £20bn in assets across over 1,200 startups and VCs, indicates a shift towards earlier investments, with 18% of CVCs planning to invest at an earlier stage. This increase in CVC participation in deals, growing from one in 10 deals in 2010 to one in four in 2024, highlights the availability of corporate funding to startups.
According to Tom Savage, an investment associate at Mountside Ventures, strategic alignment takes priority over financial returns for CVCs, leading to potential mismatches in expectations during the growth phase and exit process. Founders are also recognizing the benefits of working with CVCs for access to strategic resources, long-term partnerships, and market validation.
This rise in CVC investment is attributed to corporates seeking the latest technologies and market trends to stay at the forefront of global innovation. Additionally, CVCs offer a longer-term view compared to traditional VCs, which typically aim for shorter exit timelines, making them an attractive option for founders seeking long-term partnerships and resources.
