Corporate Venture Capital Trends: Where Big Money Flows

Corporate Venture Capital (CVC) is no longer just a side experiment for big corporations. Today, it’s a central growth lever. From tech giants to legacy industrial firms, everyone wants in. Why? Because startups are faster, more agile, and they’re often where the future is being built. CVC lets big companies get early access to that future.

1. Global corporate venture capital (CVC) investment reached $128 billion in 2021

Why this matters

Let’s start with the big picture. In 2021, CVC investments hit a whopping $128 billion globally. That’s not just a number—it’s a signal. Corporates aren’t just dabbling in venture capital. They’re diving in with both feet.

This surge shows how much faith large companies are placing in external innovation. Instead of building everything in-house, they’re betting big on startups that are reshaping industries.

What’s driving this spike?

Digital transformation pressure: Every company is feeling the push to digitize. Rather than trying to build everything themselves, it’s quicker and smarter to invest in startups already doing it well.
Changing consumer behavior: Startups often understand new consumers better than old-school firms. Backing them gives corporates fresh insight.
FOMO (Fear of Missing Out): Competitors are investing in startups. Sitting on the sidelines isn’t an option anymore.

What should you do about it?

If you’re a startup founder, this is your golden window. With billions of dollars in play, there’s appetite for new ideas. Here’s what to consider:

Position your startup as a strategic partner, not just a fundraising recipient.
Understand what large companies are trying to solve—and pitch directly to that.
Keep your tech and IP clear and protected. Corporates want security.

For investors, consider piggybacking on CVCs. Their due diligence is often top-tier. For corporates, if you’re not part of that $128B, ask yourself: why not?

2. In 2022, over 50% of all unicorns had at least one CVC investor

The new norm for unicorns

Unicorns—startups valued at over $1 billion—are no longer being built with just traditional VC money. In fact, more than half of all unicorns in 2022 had a corporate investor on board. That’s massive.

It’s not just about money. CVCs bring credibility, distribution channels, and partnerships that help a startup scale faster and more efficiently.

Why do CVCs love unicorns?

Risk-adjusted returns: By the time a startup hits Series C or D, it’s already de-risked compared to seed-stage bets.
Strategic alignment: These late-stage startups often operate in spaces that align closely with a corporate’s future growth plan.
Exit optionality: Corporates might acquire these startups later, and early investment helps lower acquisition costs.

What can you learn from this?

If you’re scaling a startup, targeting a corporate investor isn’t optional—it’s smart. Here’s how:

Focus on becoming “strategically irresistible”—align your product with what big firms need next.
Build a roadmap that shows not just tech growth but strategic fit with key industries.
When talking to a CVC, highlight how your growth can unlock value for their parent company.

And if you’re a corporate without unicorn exposure, you may be missing out on some of the biggest innovation plays of the decade.

3. The number of active CVC units surpassed 2,000 globally by the end of 2023

Why this is a big deal

There are now more than 2,000 active corporate venture arms in operation. That’s double what existed just a few years ago. It means competition is fierce—not just among startups, but among corporates trying to get the best deals.

What’s causing the explosion?

Low-interest environments (pre-2022) made alternative investments more attractive.
Increased board-level urgency to innovate quickly.
Success stories from top firms like GV (Google Ventures) and Intel Capital inspired others.

It’s not just tech companies anymore. Retailers, banks, logistics firms—even oil companies—are setting up CVC arms.

What does this mean for you?

If you’re a startup:

You now have more entry points than ever. Instead of chasing the top five CVCs, consider mid-tier or niche-focused ones.
Look for CVCs who understand your sector deeply and can plug you into their supply chain or customer base.

If you’re a corporation thinking of starting a CVC:

It’s not enough to “have one.” You need a clear investment thesis and strong internal alignment.
Avoid copycat strategies. Your CVC should solve your strategic problems.

And if you’re an investor: this crowded space can actually help. CVCs often co-invest and lead rounds with deep pockets, lifting overall round quality.

4. CVC participation in VC deals accounted for nearly 25% of total VC funding in 2022

CVC is now a quarter of the VC world

In 2022, one out of every four dollars invested in venture capital came from a corporate investor. That’s a huge shift from the past, where corporates played more of a passive role. Today, they’re not just following—they’re leading rounds and setting the pace.

Why does this matter?

This 25% share isn’t a one-off. It’s a trend. And it signals that CVCs are becoming critical players in early-stage finance. Traditional VCs often bring operational experience and speed, but CVCs bring validation, partnerships, and resources that startups can’t buy elsewhere.

Here’s what’s behind this rise:

Need for faster innovation: Instead of building something internally, corporates find it easier to fund it.
Brand leverage: Their name alone often gives a startup immediate credibility.
Data access: Investing in a startup gives insight into emerging trends and new customer behavior.

What you should do

If you’re fundraising, think of CVCs as core participants—not optional. Structure your outreach accordingly:

Identify corporates whose long-term vision aligns with your business.
Study their existing portfolio. Find gaps they may want to fill.
When pitching, don’t just talk about growth. Talk about fit. Why you, why now, and how it helps them.

And if you’re an investor or advisor, you’ll want to build relationships with CVCs early. Their checkbooks are big—but their strategic motives are even bigger.

5. The average deal size in CVC-backed rounds was $42 million in 2022

Big checks are becoming the norm

When a CVC joins a funding round, the average deal size isn’t small. In 2022, the average was $42 million. That’s almost double the size of many standard VC-led rounds in the same year.

This tells you one thing: when corporates get involved, they don’t hold back.

Why are CVC rounds so large?

Longer investment horizons: CVCs aren’t just chasing short-term returns—they want to build long-term value.
Strategic stakes: They may want a bigger piece of the pie to gain influence or board seats.
Sponsorship confidence: Their financial backing signals high conviction, which draws in other investors.

How can you take advantage?

If you’re a founder aiming to raise a larger round:

Bring a corporate investor into your syndicate early.
Show them how the capital will be used for market entry, product scale, or infrastructure.
Make it clear that you’re building something they can’t afford to ignore—either as a partner or as a future acquisition.

For corporate teams, this is a reminder: if you want meaningful influence, you need meaningful capital. Small checks won’t get you to the front of the line anymore.

6. Technology startups attracted over 60% of CVC investments in 2022

Tech still rules the CVC world

Even with interest in other industries growing, technology startups still get the lion’s share of CVC funds. In 2022, more than 60% of corporate VC investment went into tech.

That includes software, hardware, AI, data analytics, and more. If it’s tech-enabled, CVCs are looking hard at it.

What makes tech so attractive?

Scalability: Software can scale fast and wide—ideal for corporates looking for global solutions.
Integration potential: Tech startups can plug into existing systems, improving efficiency.
Revenue transformation: CVCs invest in tech that can eventually reshape how they make money.

Practical steps for founders

If you’re in tech, your odds of landing CVC funding are higher. But high competition means you need to stand out. Here’s how:

Don’t just say you’re “AI-powered”—show how your tech drives real business outcomes.
Offer use cases specific to a corporate’s vertical or department.
Provide proof-of-concept or pilot opportunities early in the conversation.

If you’re outside of tech, don’t worry—it’s not a dealbreaker. But you do need to make your solution feel like a tech play. That could mean digitizing your product, adding analytics, or showing how you leverage technology behind the scenes.

7. Healthcare and biotech sectors saw a 40% increase in CVC funding year-over-year in 2021

The CVC spotlight is shifting

In 2021, healthcare and biotech saw a 40% increase in CVC investment compared to the previous year. That’s a major shift, especially for industries that used to be seen as slow, risky, or overly complex.

But the pandemic changed everything. Healthtech, digital diagnostics, remote care, and biotech innovation are now must-haves—not nice-to-haves.

What’s driving this surge?

Pandemic impact: COVID-19 pushed healthcare to the front of every boardroom discussion.
Digital health revolution: Apps, wearables, and platforms are enabling care from anywhere.
Aging population: As demographics shift, corporates are eager to support sustainable health solutions.

Actionable insights for you

Healthcare founders—this is your time. But remember:

Many corporates entering this space are new to health. Help them understand the regulatory landscape.
Emphasize cost savings, efficiency, and patient outcomes.
Demonstrate a path to clinical validation and scalability.

If you’re a corporate not yet investing in health or biotech, consider forming partnerships or starting with a syndicate deal. It’s a complex field—but it’s also one of the most rewarding and future-proof areas of CVC investment.

8. In 2022, the top five CVC investors included Google Ventures, Intel Capital, Salesforce Ventures, Amazon Alexa Fund, and BMW i Ventures

Big names lead the way

When the biggest tech and auto giants consistently show up as top CVC investors, it tells us something important: these companies are not just observing trends—they’re shaping them.

In 2022, the five most active and influential CVC units were Google Ventures (GV), Intel Capital, Salesforce Ventures, Amazon Alexa Fund, and BMW i Ventures. Each of these players has carved out a unique investment strategy—and they’re leading by example.

What makes these five stand out?

Clear strategic focus: GV focuses on tech and health, Intel on chips and AI, Salesforce on SaaS, Amazon Alexa Fund on voice tech, and BMW i Ventures on mobility.
Dedicated teams: These aren’t side projects. Each unit has a fully staffed investment arm with deep technical and market knowledge.
Execution power: When these CVCs invest, they can plug startups into global networks, partnerships, and users almost immediately.

What can startups learn?

First, don’t be intimidated. While it’s true that these investors are selective, they’re also structured and transparent. Here’s how to get on their radar:

Match your startup’s value proposition to their parent company’s product roadmap.
Build relationships with innovation teams before you start fundraising.
Be crystal clear about how your tech complements theirs.

These CVCs don’t just bring capital. They bring trust, visibility, and momentum. If you get one of them in your corner, it could change everything.

9. CVC-backed startups have a 15% higher survival rate than non-CVC-backed peers after five years

The numbers don’t lie

Startups are risky. Most fail within a few years. But data shows that startups backed by corporate investors survive 15% more often than those funded only by traditional VCs.

This isn’t about luck—it’s about leverage. CVCs often help with customer access, tech support, and market validation, which are all huge advantages when you’re trying to grow fast and smart.

Why survival rates are higher

Built-in customers: Many corporate investors can become customers or channel partners.
Credibility boost: Having a big brand on your cap table reassures future investors and partners.
Resource access: Startups get help with everything from marketing to manufacturing.

How to position for this advantage

If you’re a startup looking to beat the odds:

Align with a corporate that can actively support your growth—not just one with a big checkbook.
Ask about their track record. Do their portfolio companies survive and thrive?
Think long term. Corporate support in year 2 or 3 can be just as valuable as funding in year 1.

And if you’re a founder weighing different offers, don’t just look at the valuation. Look at who’s likely to help you win long term.

10. ESG-focused startups saw a 30% increase in CVC interest between 2020 and 2022

ESG is more than a buzzword

Environmental, Social, and Governance (ESG) issues are now boardroom topics in nearly every major company. And it’s affecting how they invest.

Between 2020 and 2022, CVC interest in ESG-focused startups grew by 30%. Startups addressing carbon reduction, ethical supply chains, renewable energy, or inclusive finance are now high-priority targets.

What’s driving this change?

Regulatory pressure: Governments are pushing for cleaner, fairer business practices.
Consumer demand: People want to support brands that align with their values.
Investor scrutiny: Public and private markets are asking tough questions about ESG metrics.

Tactical advice for ESG startups

This trend isn’t going anywhere. If your startup is ESG-oriented, here’s how to capitalize on growing CVC interest:

Tie your mission to measurable outcomes. For example, how many tons of carbon do you reduce?
Speak the language of corporate sustainability officers. Show how you help them meet goals.
Be transparent. Greenwashing is a real concern—data and integrity matter.

And if you’re a corporate with ESG goals, investing in startups can help you hit targets while discovering new opportunities. It’s not just philanthropy—it’s smart strategy.

11. Over 70% of Fortune 100 companies now operate a CVC arm

Innovation is now part of the core

More than 70% of the biggest companies in the world—the Fortune 100—now have a CVC unit. That’s a massive shift from a decade ago when only a small minority had any formal venture program.

This stat tells you just how central CVC has become to modern corporate strategy.

Why are so many top firms investing in startups?

Disruption insurance: Investing in innovation reduces the risk of being blindsided by a startup.
Market insights: CVC units serve as early-warning systems for shifts in consumer behavior.
M&A pipeline: CVCs help identify and groom future acquisition targets.

What it means for the rest of us

For startups, this is great news. The pool of potential corporate investors is wider than ever. But to get funded, you have to understand what these companies care about.

Do your research. What are their pain points? What tech are they scouting?
Build in public. These companies have entire teams monitoring emerging players.
Think integration. How does your product plug into their ecosystem?

For smaller corporates or mid-market players, the rise of CVC in big business is a wake-up call. If you’re not exploring venture as a growth strategy, your competitors probably are.

12. Asia accounted for 25% of global CVC investment volume in 2022

Asia is rising fast

Asia now contributes a quarter of all global CVC investment volume. This is a major shift, reflecting both the growth of Asian corporates and the startup ecosystems in places like China, India, South Korea, Singapore, and Japan.

CVC in Asia is no longer following—it’s leading in sectors like fintech, mobility, and consumer tech.

Why the boom in Asia?

Corporate ambition: Asian conglomerates are expanding internationally and using CVC to scout and scale new ideas.
Startup ecosystem maturity: More unicorns and exits are happening in Asia than ever before.
Government support: Many Asian governments encourage innovation with grants and tax incentives.

What should you do about it?

If you’re a global startup:

Don’t overlook Asian CVCs. They often move fast, offer large checks, and can be key to entering massive markets.
Understand local business culture and preferences before pitching. Relationships matter.
Consider setting up an Asia strategy—even a small presence can make you more attractive.

If you’re an Asian corporate without a CVC arm, now is the time to catch up. The competition is global, and the best startups are looking for partners who understand their region and can open doors.

13. Europe represented 17% of global CVC deal count in 2022

Europe is quietly gaining ground

While often overshadowed by the U.S. and Asia in tech investment headlines, Europe is steadily growing its presence in the CVC world. In 2022, 17% of global corporate venture deals happened in Europe. That’s a strong share considering how fragmented the continent is.

This rise points to one thing: European corporates are waking up to the power of venture investing, and European startups are becoming more attractive as global innovation hubs.

Why this matters

Innovation clusters: Cities like Berlin, London, Stockholm, and Paris are producing high-quality startups at scale.
Policy support: EU-level initiatives are promoting tech innovation and cross-border collaboration.
ESG alignment: European startups often lead in climate tech and sustainability—key focus areas for corporates.

Advice for founders and corporates

If you’re a founder in Europe:

CVC money is becoming more accessible. Look for corporate funds based not only in your country but across the EU.
Pitch the long-term strategic value you offer. Many European corporates prefer deeper partnerships over quick exits.
Emphasize compliance and governance. These are high priorities in the EU and can be big trust factors.

If you’re a U.S. or Asian corporate:

Europe offers a wealth of under-tapped startups, especially in B2B, deep tech, and green innovation.
Consider partnering with local funds or accelerators to gain faster access to quality startups.
Don’t let regional complexity stop you. With the right legal and advisory support, investing in Europe is more straightforward than it seems.

14. The median time to exit for CVC-backed startups is 6.1 years

Patience pays off

Startups backed by CVCs typically take around 6.1 years to reach an exit—whether through IPO, acquisition, or secondary sale. That’s slightly longer than the average for VC-only backed startups, which often exit closer to the 5-year mark.

This extra time isn’t a negative. It’s actually a strength of the CVC model. Corporate investors often support longer-term growth, helping companies mature before pushing for an exit.

Why it takes longer

Strategic focus: CVCs don’t need immediate returns—they’re more interested in how a startup aligns with future business goals.
Less pressure: Traditional VCs often have fund cycles to meet. CVCs, backed by large corporates, can be more flexible.
Path-to-scale: CVC-backed startups often enter new markets, launch complex products, or pursue strategic partnerships—all of which take time.

How to leverage this as a founder

If you’re looking for patient capital, CVCs might be a better fit than some early-stage VCs.
Build your strategy around long-term impact, not just a fast flip. Show how you plan to grow steadily and sustainably.
Use the extended timeline to build deeper customer relationships, perfect your product, and expand your team strategically.

As an investor, this longer timeline can lead to more mature, stable exits. And for corporates, a six-year horizon aligns well with major transformation plans and digital roadmaps.

15. Artificial intelligence startups received 18% of all CVC capital in 2022

AI is the main event

No surprise here—AI is hot. But here’s the big number: in 2022, 18% of all CVC investment went into artificial intelligence startups. That’s nearly one-fifth of the total. From generative AI to predictive analytics to robotics, corporates are pouring money into machine intelligence.

Why the obsession?

Efficiency gains: AI can cut costs, boost productivity, and improve decision-making.
Revenue opportunities: Many corporates see AI as a way to create new products or business models.
Competitive edge: Falling behind in AI could mean losing market share fast.

Founders, here’s how to stand out

The AI space is crowded. If you want to attract a corporate investor, don’t just talk tech—talk results.

Show real use cases. How does your AI deliver value for an enterprise?
Address risks. CVCs care about ethics, privacy, and explainability—especially in regulated industries.
Prepare for integration. Many corporates want solutions that can work with legacy systems.

If you’re a CVC team looking at AI, focus on startups with domain-specific expertise. General AI hype fades fast, but deep expertise in areas like healthcare, logistics, or manufacturing can create lasting value.

16. In 2021, corporate investors participated in over 3,500 VC deals globally

A global footprint of influence

In 2021, CVCs were involved in more than 3,500 VC deals worldwide. That’s not just participation—it’s presence. It shows that corporate investors are now deeply embedded in the global innovation ecosystem.

This isn’t isolated to the U.S. or big tech hubs either. CVC deals happened across continents, industries, and funding stages.

Why is this important?

Massive deal flow: CVCs now touch a wide range of sectors and geographies.
Normalization of CVC: Founders and VCs alike now see corporate capital as a regular part of the funding stack.
Access to innovation: This global reach gives corporates insight into trends before they hit the mainstream.

What this means for stakeholders

For startups:

There’s a growing chance a corporate will show up in your deal—be ready.
Tailor your pitch to highlight both growth and strategic value.
Build long-term relationships with corporates, not just one-time checks.

For corporates:

Being active globally helps you spot trends early, hire globally, and diversify your exposure.
You don’t always need to lead the round to benefit—sometimes participation is enough to learn and build relationships.

And for traditional investors, this CVC presence brings stability and scale to deals. Done right, everyone wins.

17. 43% of CVC units have dedicated strategic teams separate from financial teams

Strategy and returns can live together

Nearly half of all corporate venture units now have two distinct teams: one focused on strategy, the other on financial returns. This structural shift shows that CVC is maturing fast. It’s no longer just a financial play—it’s also about integration and strategic transformation.

Why this structure works

Clarity of goals: Strategy teams look for startups that solve real business problems. Finance teams ensure the deals make sense.
Better alignment: Internal business units are more likely to support CVC deals if they see a clear path to impact.
Faster execution: With clear roles, decision-making is faster and more collaborative.

Advice for founders and corporates

Founders:

Understand who you’re talking to. A strategy lead will care about vision and integration. A finance lead will care about margins, revenue, and risk.
Tailor your pitch to address both sides. It’s not enough to be innovative—you must also be investable.
Follow up post-investment. Engage with both teams regularly to keep alignment strong.

Corporates:

If your CVC unit doesn’t yet have this dual structure, consider adopting it. You’ll avoid internal conflicts and make better decisions.
Educate your business units about how to work with startups. Strategic wins only happen with buy-in from the core business.

18. Fintech attracted over $20 billion in CVC funding globally in 2022

Fintech is still a favorite

In 2022, fintech startups pulled in over $20 billion in funding from corporate venture capital units worldwide. That’s a clear signal that the transformation of financial services is still a hot priority—especially for banks, insurers, and even tech companies branching into finance.

Whether it’s payments, lending, digital banking, insurance tech, or blockchain, corporates see fintech as a way to stay relevant in a rapidly changing world.

What’s fueling this surge?

Consumer expectations: People expect frictionless, mobile-first financial experiences.
Cost-cutting potential: Automation and AI reduce overhead for financial operations.
New markets: Fintech opens doors to the underbanked, gig workers, and micro-businesses.

Founders: How to get noticed by CVCs in fintech

Highlight how your product creates efficiencies for large institutions. Speed, cost, and compliance are big selling points.
Emphasize security and regulatory readiness—especially if you’re targeting banks or insurance companies.
Showcase early traction in underserved segments. That’s where many corporates are looking to grow.

For corporates, investing in fintech is a hedge against disruption—and a chance to explore future revenue streams. But to succeed, you need teams that understand both finance and tech deeply.

19. CVC-backed startups are 3x more likely to partner commercially with the corporate parent

From investor to customer

Here’s a powerful stat: startups that receive funding from a CVC are three times more likely to also become a commercial partner of that corporate. That means more than just capital—it’s access to contracts, distribution, and real revenue.

This makes CVC more than just a funding source. It’s a strategic channel.

Why this happens

Aligned goals: Corporate investors often fund startups they plan to work with.
Low-friction integration: Investment usually signals internal readiness to explore partnerships.
Mutual commitment: Both sides have skin in the game, so collaboration gets prioritized.

For startups: how to turn investment into a commercial deal

From day one, pitch your product as a solution for the investor’s business units.
Ask what KPIs or outcomes matter to their internal teams—and align with those.
Appoint someone on your team to manage that relationship post-investment. Follow-ups create momentum.

For corporates, don’t just invest—activate. Build onboarding programs, co-selling opportunities, and joint pilots. This is how you extract real value from your portfolio.

20. Cybersecurity saw a 35% YoY rise in CVC deal volume in 2022

Cyber threats = CVC opportunity

With cyberattacks rising across every sector, it’s no surprise that CVCs boosted their cybersecurity investments in 2022—up 35% year over year. Data breaches, ransomware, and compliance demands are now board-level issues.

Corporate investors are racing to back the startups that can help them stay safe and compliant in this new threat landscape.

What’s driving the urgency?

Remote work: Expanded digital perimeters create more vulnerability.
Cloud migration: As infrastructure shifts, new tools are needed for protection.
Regulatory pressure: From GDPR to CCPA to global compliance laws, staying secure is no longer optional.

What cybersecurity startups should do

Speak the language of enterprise risk—not just tech specs. Explain how you reduce liability, not just how your tool works.
Show scalability. Corporates need solutions that protect thousands of endpoints or users, not just a single team.
Offer proof. Demos, case studies, and penetration test results are your best allies.

If you’re a corporate without a cyber-focused startup in your portfolio, you may be missing the most immediate value CVC can bring. Not only do these startups secure your future—they often become M&A targets down the line.

21. In 2022, 60% of all Series C+ funding rounds included at least one corporate investor

CVC goes late-stage

More than half of all late-stage funding rounds (Series C and beyond) in 2022 included at least one corporate investor. That’s a huge shift from the early days when CVCs were mainly active in Series A or B.

Corporates now want to be part of the scaling phase. They’re placing bigger bets on companies that are already proving themselves in the market.

Why late-stage is attractive to CVCs

Lower risk: These startups have customers, revenue, and solid teams.
M&A readiness: CVCs can test-drive potential acquisitions before committing.
Market expansion: Late-stage startups often look for global partners, which corporates can offer.

Tips for late-stage founders

Don’t assume corporates only play early. At Series C or D, pitch them as partners for expansion—especially if you’re entering new verticals or regions.
Highlight your track record, and be clear about your exit strategy.
Ask about how they support scale. Can they offer distribution, joint ventures, or enterprise deals?

For corporates, these rounds are often more expensive—but they also offer higher odds of strategic alignment and financial return. The key is to move quickly. Late-stage deals close fast.

22. Renewable energy startups saw over $10 billion in CVC investment in 2022

Clean energy is becoming a corporate priority

With climate change now a global emergency, corporates are investing heavily in renewables. In 2022, more than $10 billion in CVC funding went to startups focused on solar, wind, battery storage, hydrogen, and other clean technologies.

This isn’t just about compliance—it’s about survival, reputation, and opportunity.

Why renewables are hot

Net-zero commitments: Many corporations have set carbon neutrality goals and need startups to get there.
Rising energy costs: Self-generation and efficiency tech can lower long-term costs.
Public pressure: Customers, regulators, and investors all expect action.

For founders in climate tech

Be specific about your impact. How much carbon do you save? What’s your cost per kilowatt-hour saved or produced?
Understand corporate sustainability frameworks. Speak directly to ESG officers and energy procurement teams.
Be prepared for pilot projects. Many corporates want to test before they scale.

If you’re a corporate in energy, logistics, retail, or heavy industry—this space isn’t optional anymore. The startups you invest in today could become the infrastructure you rely on tomorrow.

23. Over 40% of CVC funds now incorporate ESG screening criteria

Investing with purpose

ESG—Environmental, Social, and Governance—is no longer a niche concern. More than 40% of CVC funds now apply ESG screening before they make an investment. This means that startups must meet certain sustainability and ethical standards just to be considered.

CVCs are under pressure from boards, shareholders, regulators, and the public to ensure their capital aligns with broader societal values.

What’s behind the shift?

Stakeholder pressure: Consumers and employees care deeply about sustainability and fairness.
Investment risk: Poor ESG practices can lead to lawsuits, regulatory fines, or reputational damage.
Brand alignment: CVCs are often tightly linked to corporate branding—investing in unethical startups could backfire.

What startups should do now

Prepare an ESG profile. Show how your startup promotes environmental responsibility, diversity, and strong governance.
Build ESG into your pitch. Talk about sustainable materials, fair labor, carbon reduction, or data privacy.
Be ready to back it up. ESG screening often involves checklists, third-party assessments, and documentation.

For CVC teams, ESG isn’t just a compliance issue—it’s also about long-term value. Companies that operate responsibly tend to perform better and last longer.

24. The average CVC unit lifespan is 8.5 years

Longevity is earned, not given

The average corporate venture capital unit now runs for about 8.5 years before it’s shut down, spun off, or restructured. That’s longer than most product cycles or even C-suites.

But while this might sound like a stable number, it actually masks a challenge: many CVCs struggle to maintain internal support and deliver consistent value year after year.

Why do some CVCs last and others don’t?

Clear strategic value: The CVC helps the parent company innovate, expand, or stay ahead of disruption.
Financial wins: They show ROI through strong exits or steady portfolio growth.
Internal advocacy: They maintain champions at the executive level who protect and promote the program.

How to build a lasting CVC program

Define your mission. Are you in it for financial returns, strategic access, or both?
Build bridges internally. Your best allies are product managers, BU heads, and finance leaders.
Track and communicate value. Even if an investment hasn’t exited yet, highlight partnerships, insights, or pilots.

For startups, this means doing due diligence on your corporate investor. How long have they been around? What’s their track record? Are they likely to still be operating in 3–5 years?

25. SaaS startups attracted over 30% of all tech-focused CVC capital in 2022

Software keeps eating the CVC world

Software-as-a-Service (SaaS) continues to dominate tech investments—and CVC is no exception. In 2022, over 30% of all CVC dollars aimed at tech went into SaaS startups.

Why? Because SaaS models are predictable, scalable, and align well with how corporates buy and use technology.

What makes SaaS so appealing to corporates?

Recurring revenue: Subscription models are easier to forecast and budget for.
Fast deployment: Cloud-based software can be rolled out quickly across global teams.
Data visibility: SaaS tools often provide insights that help businesses optimize operations.

What founders should focus on

Highlight your metrics. CVCs care about churn, LTV, CAC, ARR, and net retention.
Focus on enterprise readiness. Can your product handle scale, security, and compliance?
Consider integrations. Corporates often want software that fits easily into existing stacks—Slack, Salesforce, AWS, etc.

For CVCs, backing SaaS startups isn’t just about returns. It’s also a fast way to test new internal tools, support digital transformation, and improve the customer experience.

26. In 2022, corporate investors participated in more than 60% of mega rounds ($100M+)

Big money means corporate money

Mega rounds—those $100 million+ deals that make headlines—are now dominated by corporate participation. In 2022, over 60% of these huge rounds included at least one corporate investor.

This shows that when the stakes are high, startups and VCs want CVCs involved. It’s not just about funding anymore—it’s about strategic partnerships that can drive hyper-growth.

Why corporates love mega rounds

Late-stage confidence: These startups are proven, with clear market traction and growth paths.
Strategic alignment: The stakes are high, so CVCs choose companies that fit tightly with their long-term goals.
M&A scouting: A mega round can serve as a final test before a full acquisition.

What this means for startups

If you’re raising a mega round, a corporate investor may be a key piece of your syndicate. Don’t wait for them to approach you—initiate contact.
Offer real partnership opportunities, not just equity. Ask: how can we grow together?
Be clear about your long-term vision. Corporates want to know where you’re headed and how you’ll get there.

For CVC teams, mega rounds are expensive—but they’re also some of the most visible and impactful investments you can make. Choose wisely, and prepare to be hands-on.

27. CVC activity in Latin America grew 2.5x between 2020 and 2022

Latin America is heating up

Between 2020 and 2022, corporate venture activity in Latin America more than doubled—growing 2.5 times in just two years. From São Paulo to Mexico City to Bogotá, the region is exploding with startup activity, and corporates are taking notice.

Latin America’s large population, mobile-first behavior, and underserved markets make it a hotbed for innovation.

What’s behind this rapid growth?

Digital acceleration: COVID pushed millions of consumers online for the first time.
Untapped potential: Fintech, e-commerce, and logistics startups are solving real problems for massive populations.
Corporate ambition: Multinationals want a piece of the growth—and local corporates want to lead the charge.

How to get in on the action

For startups in Latin America:

CVC capital is now more available than ever. Highlight your local insights, cultural fluency, and execution track record.
Show how your product can scale regionally. CVCs love cross-border potential in LATAM.
Address structural risks—currency fluctuation, political shifts, regulatory uncertainty—and show how you manage them.

For global corporates, investing in Latin America gives you growth exposure and innovation access. But do your homework. Partner with local funds, legal teams, and accelerators to navigate the landscape.

28. Over 50% of CVC-backed startups are in B2B sectors

The enterprise focus is clear

More than half of all startups funded by corporate venture capital are B2B—that is, they sell products or services to other businesses rather than directly to consumers. This trend reveals a deep alignment between what corporates need and what they invest in.

CVCs are often part of large organizations focused on solving internal challenges or improving how they serve clients. B2B startups offer tools and systems that do exactly that.

Why B2B attracts CVC dollars

Direct impact: B2B startups often solve problems that corporates face themselves—like supply chain, productivity, or compliance.
Predictable revenue: Contracts and recurring enterprise deals create financial stability.
Easier integration: B2B platforms often align with how corporates already operate.

Founders: how to align your B2B pitch with CVCs

Show how your product improves key metrics like efficiency, cost savings, or uptime.
Emphasize deployment case studies or existing enterprise clients.
Talk about scale—can your solution serve a multinational? Can it handle complexity?

If you’re a corporate looking to enhance your internal operations or improve customer delivery, investing in B2B startups gives you a fast track to cutting-edge tools, APIs, and workflows.

And if you’re in B2C, that’s okay too—just know that CVCs may ask more questions around customer acquisition costs, lifetime value, and brand risk.

29. Digital health startups saw a 28% increase in CVC investment in 2022

Healthcare innovation gets a digital boost

In 2022, digital health startups saw a 28% increase in corporate venture funding. These are companies working on telemedicine, health apps, AI diagnostics, wearables, remote monitoring, and personalized care.

The health sector—once seen as slow-moving—is now full of fast-growth opportunities, especially with rising costs and consumer expectations for smarter, more personalized healthcare.

Why corporates are investing in digital health

Post-COVID transformation: The pandemic made remote and digital care mainstream.
Insurance innovation: Payers are looking for smarter risk models and customer engagement tools.
Data-driven care: Corporates want to access real-time health insights to improve outcomes and reduce claims.

What digital health founders should focus on

Prove your clinical and user impact. Do you improve outcomes? Reduce costs? Speed up diagnosis?
Be aware of data regulations. HIPAA, GDPR, and regional laws are top concerns for CVCs.
Prepare for long sales cycles. Health systems move slowly—corporate partnerships can speed that up.

If you’re a corporate in pharma, insurance, retail health, or even fitness—investing in digital health startups lets you expand your offerings, personalize your services, and engage your customers in new ways.

30. Corporate investors participated in over 40% of U.S. VC funding rounds in 2022

The U.S. market is CVC-saturated

In 2022, corporate venture investors were involved in more than 40% of all venture funding rounds in the United States. That makes them one of the most active investor types in the country, across all sectors and stages.

This isn’t a trend—it’s a structural shift. Corporate involvement is now the norm in startup funding, not the exception.

Why it matters

Mature ecosystem: U.S. corporates have dedicated venture teams, proven frameworks, and long track records.
Founder openness: Startups now see corporate capital as not just acceptable—but desirable.
Investor collaboration: CVCs often co-invest with traditional VCs, improving round quality and value.

What U.S. startups should do

Build a strategy that includes CVCs early. Map out the corporates in your space and engage them ahead of your fundraise.
Think partnership-first. CVCs are most valuable when they offer something beyond cash.
Be proactive. Many corporate deals happen because a founder reached out, not the other way around.

And for corporates operating in the U.S., this level of activity requires one thing: discipline. With so many deals happening, having a clear focus, fast decision-making, and a strong post-investment strategy is what separates winning CVCs from forgettable ones.

Conclusion:

Corporate Venture Capital is no longer a side act—it’s center stage. From AI to ESG, from healthtech to fintech, from early stage to mega rounds, corporates are deeply involved in shaping the future of innovation.

As a founder, you now have more access to strategic capital than ever before—but you must approach it thoughtfully. Show value. Align strategically. Build trust.