TLDR:
- Canada’s startups, corporations, investors, and economy could benefit from increased corporate venture capital (CVC) investing.
- Canadian corporates are lagging behind their U.S. peers in CVC participation and disclosure.
A new report from Deloitte, in association with BDC Capital, highlights the opportunities for Canadian corporates to engage in CVC investing. Currently, only 6% of Canadian corporations generating $1 billion or more in annual revenue are participating in CVC, compared to 40% of similar U.S. corporates. The report emphasizes that more engagement from Canadian corporates in venture capital could lead to a ‘triple-win’ for Canada, benefitting corporations, startups, and the Canadian economy as a whole.
The benefits of CVC investing include financial gains, strategic insight, exposure to new technologies and markets, and access to resources for startups. By backing Canadian startups involved in growing technologies such as AI and robotics, stronger CVC activity could help grow Canada’s technological advantage and boost the economy.
However, the report also notes that Canadian corporates are currently allocating a larger share of their CVC investments to international startups, but this trend is slowly shifting in favor of Canadian firms. The full report is available from Deloitte Canada.
