CVCs and corporates took 25% of global deals to VC-backed companies in Q4’15 and have consistently accounted for roughly one-fourth of deals for the last five quarters, keeping participation steady even as overall funding to VC-backed companies has risen sharply, and pulled back.
In the KPMG and CB Insights 2015 Venture Capital Report, we dug into CVC and corporate participation across the past 5 quarters, including a global overview as well as breakdowns of regional trends in North America, Europe, and Asia.
Global CVC participation
On a global scale, CVCs and corporates have consistently participated in roughly a quarter of all deals to venture-backed companies, as stated above. Their participation dropped slightly to 23% in Q1’15, but has since rebounded to 25% or more of all deals in the past 3 quarters.
CVC participation by continent
In North America, corporate investor participation reached a five-quarter high of 25% in Q3’15, but dipped slightly to 23% in Q4’15. However, overall momentum has remained strong, with participation topping 20% in all 5 quarters. Meanwhile, new corporate venture arms like Twitter Ventures and Workday Ventures continue to join the fray.
The Q1’15 pullback in global CVC deal share (shown above) was largely driven by a drop-off in Europe, where corporates and CVCs participated just 17% of all deals to European VC-backed companies in that quarter. However, CVC and corporate participation has hit 22% or higher in each of the 3 quarters since.
Corporates and CVCs in Asia have been the most enthusiastic backers of venture-backed companies. With the help of active corporates like Alibaba, Tencent, Baidu, Rakuten and others, corporates reached 35% of all financing deals to Asian VC-backed companies in Q4’15. Corporates have participated in 30%+ of all Asian financings in 4 of the last 5 quarters.
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