that’s what they’re looking for
Amid the funding slump of the venture industry in 2022, non-traditional investors such as hedge funds and private equity firms ran for the hills. Many assumed there would be corporate venture capital funds too – but they didn’t.
These strategic backers persisted in 2022 and according to data from PitchBook, their presence in venture deals actually increased. In 2022, CVCs will participate in 26.2% of enterprise deals, up just a hair from 2021’s 25.6%. While this isn’t a meaningful change by any means, it is distinguishable because every other category of crossover investors participated less in 2022 than in 2021.
While regular venture firm fundraising is not expected to be particularly strong this year – and overall funding continues to be lackluster so far – there are signs that corporate venture capital will remain a steady source of funding in 2023.
Scott Lennett, co-founder and president of Touchdown Ventures, which helps corporations set up their CVCs, told TechCrunch+ that the firm is getting more incoming than ever from corporations looking to start their own funds.
The volatility of the last few years has led to more money pouring in, which should be welcome news for startups. Plus, getting the support of an investor who isn’t tied to a specific fund lifecycle in an environment of uncertain withdrawals certainly has its appeal.