Corporate venture capital activity continues to slow down, with CVC-backed deals and funding falling in Q3'22 by the largest margins in a decade.
CVC-backed funding and deals fell by 34% (to $18.6B) and 14% (to 1,098 deals), respectively, which topped the significant losses seen in Q2’22 (-29% in funding and -12% in deals).
Corporate venture arms invested in just 44 $100M+ mega-rounds in Q3’22, down 45% QoQ — the lowest level since Q2’20.
CVCs are increasingly shifting their efforts toward early-stage deals, which are pacing at 61% share of total deals this year — the highest level in a decade if the trend holds through the fourth quarter.
Other Q3’22 highlights across the corporate venture capital market include:
- Coinbase Ventures was the most active CVC in Q3’22, backing 26 companies, while Google Ventures (previously tied in first) slipped to 7th, investing in only 13 companies.
- CVC investment in fintech continued to slide QoQ, with declines in funding (-54%) and deals (-9%).
- CVC-backed funding to India-based startups bottomed out this quarter, falling to $281M after 5 straight $1B+ quarters.
- CVC deals to digital health startups fell 30% QoQ, marking a fourth straight quarter of decline. Funding slipped 18% to $1.4B.
- Attracting 45% of all deals, Asia led CVC deal share for the sixth straight quarter. The US remained at a recent low of 30% share for the second quarter in a row.
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