Globally, corporate venturing continues to grow and drive innovation. It’s a good thing. Corporations are realizing the value of investing in outside technologies, and technology scouts are uncovering market adjacencies. Corporate Venturing is now a big part of an organization’s innovation strategy. It also means less low-hanging fruit. The amount of exploitable technology continues to grow at an extraordinary rate. However, so does the number of firms looking to capitalize on the next big thing. Fierce competition with larger investments requires execution excellence. Several recent studies confirm the trend. We have put together some of the more interesting facts regarding both the growth of Corporate Venturing programs and the potential threats to existing operations. Fear not! There is an upside since firms with a systematic approach will have a competitive edge.

1. Corporate Venturing
Fueling Innovation
Trends Report

2. Globally, corporate venturing continues to grow
and drive innovation
It’s a good thing. Corporations are realizing the value of investing in outside
technologies, and technology scouts are uncovering market adjacencies. Corporate
Venturing is now a big part of an organization’s innovation strategy.
It also means less low-hanging fruit. The amount of exploitable technology
continues to grow at an extraordinary rate. However, so does the number of firms
looking to capitalize on the next big thing. Fierce competition with larger
investments requires execution excellence.
Several recent studies confirm the trend. We have put together some of the
more interesting facts regarding both the growth of Corporate Venturing programs
and the potential threats to existing operations.
Fear not! There is an upside since firms with a systematic approach will have a
competitive edge.

3. 2X Growth Corporate Venturing Units Worldwide
The number of global
Corporate Venturing
units has doubled in
the last 5 years to
1,100
Deals
&
Investment
Growth
Source: Thelander 2014 CVC Report

4. “Corporate venture capital investment
amounted to 1,068 investment deals worth
$19.6 billion in 2013. The overall venture
capital industry has been estimated at
$48.5 billion in 2013… which would make
corporate venture capital involved in
nearly 20% of deals, covering 40% of
transaction value.”
Lots of deals
Source: Volans Ventures Ltd, Investing in Breakthrough Corporate Venture Capital, 2014

5. Source: CB Insights: Evaluating the Effectiveness of CVC in Tech 2014
R&D budgets have
tightened despite
continued pressure to
bring new technology
to market quickly.
Capital investment in
High Tech firms
continues to grow as
companies look to out-
innovate the
competition. These
investments offer proof
of concept vehicles to
help firms pivot
dexterously.
High Tech Investment to Out
Innovate Competition

6. Deal Size Bigger Bets = Bigger Stakes
The stakes for
Corporate Venturing
are higher than ever
before as the
average deal size is
now over $23M.
Greater scrutiny will
be placed as these
larger investments
must show their
value.
Source: CB Insights: The 2014 US Corp VC Year in Review

7. Why is Uber the largest raise?
Internet
Based
Mobile
Tech
Healthcare
Source: CB Insights: The 2014 US Corp VC Year in Review
Company Amount
($M)
Cloudera $900
Survey
Monkey
$250
Flatiron $130
Slack $120
DataStax $106
Company Amount
($M)
Uber $1,200
TangoMe $280
Instacart $220
NantMobile $50
Kony $50
Company Amount
($M)
Naurex $80
Viamet
Pharma
$60
Aduro Bio $55
Coherus $55
Syros
Pharma
$53

8. The data shows corporate venturing is
growing by number of venture units,
number of deals, and deal size. Moreover,
there is an increased focus on high tech
investments. That means more competition
for the technologies that matter most.
Riding the wave will require a keen eye, a
quicker hand, and systematic tools to get
the job done right.
Sink or Swim

9. You can make your investments count by using
systematic tools.
• Expedite deal flow
• Rigorously and consistently evaluate opportunities
• Optimize portfolio performance
Learn more about how Wellspring can help at
wellspring.com/contact-us
© 2015 Wellspring Worldwide Inc.