Corporate venture groups participated in 19% of all deals, most since 2008
WASHINGTON, DC – Corporate venture capital groups deployed $1.6 billion to the startup ecosystem in 232 deals during the second quarter of 2015, according to the MoneyTree Report™ from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters. Combined, the 132 corporate venture groups accounted for 9.2% of total venture dollars invested and participated in 19.3% of the deals for the quarter, marking the strongest quarter, by number of deals, since the third quarter of 2008 when corporate venture accounted for 24% of all venture deals.
“Once again, we see strong participation by corporate venture groups in the entrepreneurial ecosystem, helping to nurture and grow innovative startup companies across all sectors of our economy,” said Bobby Franklin, President and CEO of NVCA. “Through the first half of the year, corporate venture groups accounted for 12.5% of total venture investment, which would make 2015 the busiest year for corporate venture activity since 2001 should this pace continue. As the ecosystem continues to cement itself as a central pillar of the U.S. economy, it’s critical to have corporate venture groups at the table playing such an important role in its growth.”
Industry Analysis
Similar to overall trends in venture capital, software companies led the way, receiving $1.5 billion in 207 deals through the first half of 2015, representing 40% of overall corporate venture investing. Coming in second was the industrial/energy sector which received $1.0 billion in 23 deals, accounting for 27% of overall corporate venture investing and 59% of total venture capital investment in the sector, suggesting significant interest in cleantech and energy companies by corporate groups. Biotechnology companies received the third largest total investment amount by corporate venture groups so far in 2015 with $513 million going into 60 deals, representing 13.4% of overall corporate venture investing.
Corporate venture investing in the life sciences sector, which includes biotechnology and medical devices, totaled $584 million in 79 deals coming from 39 corporate ventures groups through the first half of the year. As a percentage of overall venture investing in life sciences companies in 2015, corporate venture represented 11.5% of all dollars invested and participated in 19.7% of deals.