Corporate Venture Activity Rebounds After Slump in Deals and Dollars

9/20/12Follow @bvbigelow

Corporate venture capital investments started strong and stayed high during the second quarter, with $2.1 billion invested in innovative startups throughout the United States during the three months that ended in June, according to a survey released today.

That’s a 16 percent gain over the $1.8 billion that corporate VCs invested during the same quarter last year, and a 93 percent leap from the first quarter of this year, when corporate venture arms invested almost $1.1 billion, according to CB Insights, a New York financial data firm that tracks venture deals.

The firm said corporate VCs participated in 118 deals, which was 9 percent fewer than the 130 deals counted during the same quarter last year—but 40 percent more than the 84 deals counted during the first quarter. The data from CB Insights showed a huge spike in funding for cleantech ventures. Funding for Internet and mobile/telecom deals also scored high. In terms of investment stage, corporate VCs participated in more seed-stage rounds than usual. Online results of the survey are available here.

Overall, corporate venture arms participated in almost 15 percent of all venture deals during the second quarter, and accounted for $2.1 billion—or almost 26 percent—of the $8.1 billion in total VC investment activity during the quarter.

Second-quarter deals involving corporate VCs were substantially bigger—$17.8 million, on average—than conventional VC deals, which have remained flat at $10 million over the last 5 quarters. Other highlights from the survey:

—California continued to be the top destination site for corporate venture capital, accounting for 58 percent of all corporate venture deals nationwide and 75 percent of the capital invested. Corporate VCs sank just … Next Page »

Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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