Corporate VCs are playing a critical role in the largest VC financings. Can they really be ignored?
Armed with big balance sheets, corporate venture groups are making their presence felt in the venture ecosystem. According to CB Insights data, corporate venture activity accounted for 30% of the $9.99B total venture capital funding in Q1 2014.
The amount of corporate venture financing was a notable rise over that of recent quarters and marked a multi-year high. For example, Q4 2013 saw corporate venture arm’s participate in 22% of overall VC funding in the three-month period while Q1 2013 saw CVC activity account for just under 21% of total venture capital funding, respectively.
On a deal basis, corporate venture arm’s participated in almost 15% of all VC deals which was in line with historical levels.
Fred Wilson of Union Square Ventures is not a fan of corporate VC groups, but given their increased prominence in venture, it may be tough to ignore or avoid them.
To see more highlights from the CB Insights Corporate Venture Capital Activity Report – Q1 2014, click here.