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Corporate venture capital resurfaces as it did in the dotcom era


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BY : Diego GutiérrezSeptember Mon, 2013

download (1)The venture capital is Corporate venture capital has grown by 23% in the US with 1.7B$ of investment and 126 deals. The reasons for the growth are due to both a greater number of corporations with venture capital and a small group of CVCs being hyperactive.

 

The CVCs represent 25% of the investment. 

According to figures analysed by CBinsights, the investment volume of CVCs has grown by 7% compared to the previous year. CVCs are investing in all stages of investment from seed to buyouts, 40% are invested in seed and early rounds, and the amounts are higher than those of traditional VCs, specifically 60% higher. It is also significant that CVCs account for 25% of total investment.

The number of CVCs actively investing is growing: in Q2-2013, 66 CVCs participated in a deal, an increase of 40% compared to the number of CVCs that participated in Q3-2011, more than 750 CVCs have been detected worldwide.. It seems that the CVCs are filling the gap left by the VCs as they are busy raising new funds," says Diego Gutierrez, corporate finance expert at ABRA INVEST. 

Most active sectors: internet and healthcare 75% of investments.

Internet remains the sector with the largest number of deals, representing 40% of the market. In second place is healthcare, with a third of the funds focused on this sector and including corporations such as Novartis, GlaxoSmithKline, Merck, J&J, and Kaiser Permanente among others.

Participation is fairly concentrated in the top 10 CVCs, which account for 40% of total deals done, with the two leaders standing out: Google Ventures and Intel Capital with 20% of the total. Other active players include Qualcomm ventures, In-Q-Tel and Novartis.

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