MAKING INFORMEDDECISIONSCORPORATE VENTURE CAPITAL

HIGHER STAKES FORVENTURE DEALS

Copyright Wellspring 2016for Corporate Venturing

Trends in 2015

RECORD DEAL GROWTH2015 saw record dollar amount for Corporate Venture backed deals with $75.38B invested. This represents 311% growth from the 2011 dollar amount. Deal volume also rose signi�cantly. There were 1,790 CVC deals in 2015, a 156% increase from the 2011 number, and a 20% increase from the 2014 number.

Total CVC Deals

Total CVC Investment

1,7901,480

698

808

780$75.3

$40.8

$15.5$14.6$18

2011 2012 2013 2014 2015

RECORD CVC VOLUME According to a GCV Analytics study, 2015 corporate venture funding hit an all time high with $75B in capital investments, representing over 1,100 deals. This marks a 15-year record for CVC backed deals in terms of dollars invested. This volume also represents one quarter of all venture capital deals, and 150% growth since 2011. 2015saw continued growth in every major metric.

150%

15-YEARRecord

Growth

GEOGRAPHIC DIVERSITYNew venture activity is not limited to �rms in the United States either. In fact, 62.6% of CVC investment in China for 2015 was domestic only, compared with just 8.3% in 2012. Japan, Canada, India, and Germany all saw signi�cant domestic CVC activity as well. In 2015 the market saw $2.9B invested in the EU, $16B in China, and $4B in India.

$33B $16B

$4B

$2.9B

GLOBAL CVCFUNDING

Competitive Landscape

85 new CVC groups made their �rst investment in 2015, this represents 269% growth in the number of new entrants since 2010 and 16% growth over 2014. The active number of CVC’s (participating in at least one deal per year) has reached 801 - up 79% from 2011and 23% from 2014. This means more competition forquality proprietary deals.

MORE ACTIVE GROUPS

448525 510

649

801

20152014201320122011

NUMBER OF ACTIVE CVC GROUPS>1 INVESTMENT PER YEAR

2011-2015

0

20

40

60

80

100NUMBER OF NEW CVC GROUPS

BY YEAR OF FIRST INVESTMENT2010-2015

10’ 11’ 12’ 13’ 14’

2015

8573

61492823

20142013201220112010

85

In just three years the percentage of domestic CVCactivity in China has grown an astonishing 654%.The Chinese market saw 215 venture backed dealsin the �rst quarter of 2015, up from 93 in Q1 of 2012

CHINESE INVESTMENT

8.3%

9.7%

82%

59.7%

3.7%

36.6%

62.8%

10.6%

26.6%

62.6%

27.8%

9.6%

2012 2013 2014 2015

CVC ACTIVITY - CHINA

DOMESTIC ONLY

DOMESTIC AND FOREIGN

FOREIGN ONLY

Of the entire CVCMarket belongsto the top 10 CVC groups

Other 1,090Top 10

26%

Top HeavyMarket

GCV Survey Results

CVC’s NEED TO BECOMEMORE PRODUCTIVE

The following results are from a Global Corporate Venturing survey in which participants were asked to rate issues on a scale of 1 (not di�cult) to 7 (very di�cult).

1 Not di�cult at all

2-3 Somewhat di�cult

4-5 Di�cult

6-7 Very Di�cult

Collecting QualityAssessment andDue Dilligence Data

16%

58%

26%

Maintaining HighQuality Data ThatIs Easily Found

1 Not di�cult at all

2-3 Somewhat di�cult

4-5 Di�cult

6-7 Very Di�cult

29% 35%

35%

For the full survey results and a recording of the Wellspring GCV webcast on managing proprietary deals visit Wellspring.com/Global-Corporate-Venturing

KPMG and CB Insights. “Venture Pulse Q4 2015: Global Analysis of Venture Funding.” (2016).

Global Corporate Venturing AnalyticsLewis, Toby, James Mawson, Claudia Fan Munce, Scott Lenet, Andrew Gaule, Frank Lampen, Tracy Isacke, Deborah Marshall, Marc Gottschaulk, Martin Haemmig, Boris Battistini, Chirag Patel, Paul Morris, and Heidi Mason. World of Corporate Venturing 2016. (2016).

Sources