HomeAnalysisMountside Ventures Releases Findings of 2024 "Navigating Corporate Venture Capital" Report

Mountside Ventures Releases Findings of 2024 “Navigating Corporate Venture Capital” Report

Mountside Ventures, a London, UK-based accelerator and early-stage advisory firm, released the findings of its 2024 ‘Navigating Corporate Venture Capital’ report in partnership with Love Ventures, a London, UK-based early-stage venture capital firm investing in FinTech, Future of Work and ConsumerTech.

The annual report provides insights from over 100 global CVC investors with more than £20 billion in assets under management (AUM), deployed into over 1,200 startups and VCs. It was produced in collaboration with Sheridans, Dealroom and FieldHouse Associates.

Since 2010, there has been an increase in CVCs participating in deals, growing from 10% to 25% in 2024. According to the report, CVCs are investing more frequently in startups, to access the latest technologies and market trends, ensuring they stay at the forefront of global innovation. Findings also show that founders consider raising capital from a CVC (rather than a traditional VC) if they are seeking access to strategic resources such as R&D capabilities, long-term partnerships, exit opportunities and market validation. 

CVCs are continuing to invest in tech, with 90% expecting to invest the same amount or more in early-stage companies over the next three years. Following the global trend of VC funding into artificial intelligence (AI), the report shows that around 40% of CVCs invest in B2B companies focused on AI and machine learning. 90% of the respondents invest at the Series A stage. Moreover, 65% of respondents plan to continue investing at the same stage, and 18% plan to invest earlier. This is contrary to market expectations that CVCs predominantly invest at later stages. A growing trend is for CVCs to invest directly into VCs with one in three investing in VC funds or VC fund-of-funds.

The report shows that 83% of CVCs invest this way for enhanced market intelligence, 64% for financial returns and 61% for deal flow for later-stage investments. Not only does this benefit funds in raising capital but also can benefit their portfolio companies due to follow-on potential and strategic partnerships. 

Download the full report here.

VCWire

01/07/2024