Making Corporate Venture Capital Work

The potential synergy from pairing corporations with new ventures is promising, but many CVC plans fail to deliver value.

Corporate venture capital (CVC) — equity investments in startups made by corporate entities — is steadily rising in the market. In 2018, the number of active CVC business units rose to 773, a 35% increase over the previous year. These CVC units participated in 32% more deals and invested 47% more funding over the same period. While technology giants like Google, Intel, and Salesforce were the most active investors, CVC units have been established by corporations across the globe in many industries beyond tech. Johnson & Johnson, Mitsubishi, Robert Bosch, Unilever, Novartis, and Airbus are just a sample of corporations that recently established CVC activities.

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