It’s pretty clear from the most recent data that corporate venture capital (CVC) activity is on the upswing. The trend is no surprise given the visible engagement of this constituency in the industry and with NVCA. In 1H 2013, corporate VCs invested an estimated $1.38B in 303 deals. This activity is attributed to 107 corporate VC groups and represents a participation level of 16.7% of the deals done by the industry and 10.9% of the dollars. This percent of dollars is a post-bubble record.
More than a quarter of the corporate dollars (27.7%) went to the software sector; 17.7% to biotech sector, and 11.6% to the industry/energy sector, where many but not all of the clean tech companies reside. Sectors where CVC was a significant player based on percentage of deals engaged in are telecom, networking and biotech.
For energy and clean tech, 15.8% of all CVC dollars went to this sector and corporate groups were involved in 19.7% of all the energy and clean tech deals.
It’s important to note that 2Q saw the implementation of our considerably stepped up efforts to capture CVC activity through surveys. Some of this increase seems to be related to that – but not all of it. However, implementation of Step 2 which will cause a bigger spike (counting certain solo CVC transactions which are currently excluded from the calculations) has not yet taken place. When Step 2 happens, the revised criteria will apply to historical as well as new data.