This is what they are looking for
in the middle of the adventure Due to the slowdown in industry funding in 2022, non-traditional investors such as hedge funds and private equity firms have raced for the hills. Many assumed that corporate venture capital funds would do the same, but they didn’t.
These strategic backers held steady in 2022 and, according to PitchBook data, actually increased their presence in venture deals. In 2022, CVCs were involved in 26.2% of venture deals, just a hair up from 25.6% in 2021. While this isn’t a significant change by any means, it stands out because every other category of cross investors participated less in 2022 than in 2021.
While regular fundraising from venture firms is not expected to be particularly strong this year, and overall funding has continued to fall so far, there are signs that corporate venture capital will continue to be a steady source of funds in 2023.
Scott Lenet, co-founder and president of Touchdown Ventures, which helps corporations set up their CVCs, told TechCrunch+ that the firm is getting more input than ever from corporations looking to start their own fund.
The volatility of the past few years has led to more funds looking to deploy capital, which should be good news for startups. Also, getting endorsement from an investor who is not tied to a specific fund lifecycle in an uncertain exit environment definitely has its appeal.
