A rebuttal to critics of corporate venture investing, from the global head of M&A and strategy at India's Micromax. |Guest post by Kumar Shah, global head of M&A and Strategy at Micromax Informatics.|Guest post by Kumar Shah, global head of M&A and Strategy at Micromax Informatics.
Cisco, Intel, and Qualcomm are well-represented in our lists for most active CVCs in some of the largest global markets outside the US.
Corporate VCs provide startups with in-depth industry knowledge and access to potential customers, while institutional VCs are experts in building companies and driving financial results.
CB Insights and Morgan Lewis' new “Corporate Venture Capital Term Sheet Survey” report for Q1'15 also finds that CVC programs are offering terms substantially similar to traditional VC financing.
Thomas Grota of T-Venture Holding predicts that corporate VC participation will increase significantly. He also notes exceptions to the assumption that CVCs only invest in late-stage unicorn companies.
Corporate VC arms have also participated in more than $3B in US-based deals in each of the last 3 quarters.