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21

Feb

2012

Corporate VC Investment Increases Reflect Growing NVCA Membership PDF Print E-mail

Janice Mawson

Written by Janice Mawson   
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This morning the NVCA released the 2011 Corporate Venture Capital (CVC) 2011 investment statistics.  The data, which comes from the MoneyTree report by PwC and NVCA and is based on data from Thomson Reuters, shows a growing CVC investment trend line in terms of absolute dollars and percentage participation alongside of traditional venture capital firms.  In addition to the traditional investment sectors of life sciences and IT, we have seen more CVC arms enter into the clean technology arena as they commit to finding green solutions for their own businesses and the businesses of others.

The increasing investment numbers parallel a growing CVC membership at the NVCA.  In 2004, we formed the Corporate Venture Group with 45 members.  Since that time, CVG has increased to 60 members representing a broad range of industries including life sciences, cleantech, consumer and business products and services, financial services, media and entertainment, automotive, retail, security and semiconductors.  While the majority of our members have had active VC arms for more than 10 years, we are seeing new entrants into the CVC arena.  But was is more telling is the deeper level of involvement CVCs are taking in the investment lifecycle.  We are seeing more CVCs taking board seats as part of their investment and often times CVCs are acting as lead investor and/or coming into deals in a seed or early stage round.

This involvement and the diversity of industries in which CVCs are operating suggests that the increasing participation is not just a flash in the pan but a strategic recognition of the value that comes with a seat at the table of start-ups earlier rather than later.  Traditional VCs are also embracing the CVCs as excellent sources of business development opportunities and, ultimately, exits.

For more information about the NVCA Corporate Venture Group including a list of current members, please visit our CVG home page.

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