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Quote of the Week : Corporate Venturing Goes Global

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October 19, 2012

“Corporate venturing has been practiced for more than 40 years… [it has] historically accounted for 6% to 10% of all VC globally. During the dot-com peak of 1999–00, when corporate venturing was often more motivated by irrational exuberance than thoughtful strategy, its share of the VC pie grew. Since then, CVC has returned to its historic share…”

 

Who said it : Bryan Pearce, Americas Venture Capital Advisory E&Y, and Dr. Martin Haemmig, adjunct professor CETIM

 

In Context: The latest E&Y study of VC investment globally focuses on the trends and hotspots, as well as globalization of venture capital. The above quote is in a sub-section on corporate venture capital investment. It is a small but interesting aspect of the VC market. For example, in the US corporate VC makes up nearly 3% of all capital being committed to US start-ups, and last year’s total was just under USD 1 billion. What is new is that corporate venturing In China and India is on the increase. It says big local corporations are beginning to challenge the local VCs and their foreign corporate venture capital rivals. Some of the major players are Baidu, Tencent, Alibaba, Huawei, ZTE, Tata, Wipro, Infosys, and Reliance.

 

Where we found it: E&Y Global venture capital insights and trends report 2011

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