Software Companies Dominate but Life Sciences Companies Received More Corporate Venture Investment Dollars than Any Year on Record
WASHINGTON, DC – Corporate venture groups invested $5.4 billion in 775 deals to U.S.-based companies in 2014, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Corporate venture accounted for 11.0% of all venture dollars invested and 17.8% of all venture deals in 2014, marking the strongest year for corporate venture investing, by dollars, since 2000 when corporate venture groups invested $15.1 billion into 1,948 deals. In the fourth quarter, corporate venture groups invested $1.4 billion in 197 deals.
“Accounting for the highest percentage of total venture investment since 2000, it’s clear that corporations are eager to get in on the ground floor of innovation by investing in America’s startup entrepreneurs,” said Bobby Franklin, President and CEO of NVCA. “Although software companies continue to receive the lion’s share of investment dollars, life sciences companies are increasingly drawing the attention of corporate venture groups. Of the almost $8.5 billion deployed to life sciences companies in 2014, $1.1 billion of that came from corporate venture groups, the most since we began tracking venture investment data in 1995.”
As is the case with overall venture investing, the software industry received the highest level of funding of all industries in 2014 with corporate venture groups deploying $2.5 billion in 339 deals to software companies. Biotechnology companies received the second highest level of corporate venture dollars with $810 million going to 98 deals. Media and Entertainment companies received the third largest total investment amount by corporate venture groups for the year, accounting for $681 million in 86 deals.
Corporate venture investing in the life sciences sector, which includes biotechnology and medical devices, was very strong in 2014. Corporate venture groups invested $1.1 billion in 146 deals, representing a combined 20.4% of total dollars invested by corporate venture groups for the year. As a percentage of overall venture investing in life sciences companies in 2014, corporate venture represented 13.0% of all dollars invested, marking the highest percentage of corporate venture investment in life sciences companies since the inception of the MoneyTree Report™ in 1995.
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