PwC-NVCA MoneyTree™ Report Shows Corporate Venture Records Strongest Quarter of 2014 as a Percentage of Overall Venture Investing

Corporate venture groups accounted for 10.0% of total dollars invested and 17.2% of deals during Q3

Corporate venture groups invested $993.6 million in 176 deals to U.S.-based companies during the third quarter of 2014, according to the MoneyTree™ Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA), based on data provided by Thomson Reuters.  Corporate venture accounted for 10.0% of all venture dollars invested and 17.2% of all venture deals in the third quarter, marking the strongest quarter of 2014 as a percentage of total venture investing.  One hundred and sixty corporate venture groups have invested almost $3.3 billion in 562 deals through the third quarter of 2014, representing 9.3% of total venture dollars invested and 17.7% of all venture deals.  If this pace continues, 2014 will mark the strongest year for corporate venture investing since 2000, when corporate venture groups invested $15.1 billion in 1,195 deals.

“While the percentage of total dollars coming from corporate venture groups is down slightly from a recent high in 2013, corporate venture remains very strong and is on pace to record its strongest year since 2000,” said Bobby Franklin, President and CEO of NVCA.  “Accounting for 22% of total dollars invested by corporate venture groups, the life sciences sector is an immediate beneficiary of this increased corporate venture activity and could see the highest annual total of corporate venture dollars ever recorded.  Judging by the data and the anecdotal evidence we have from our members, there is no doubt corporate venture is on the rise and is a valuable resource to the entrepreneurial economy.”

Industry Analysis

In keeping with the overall trend in venture, the software industry has received the highest level of funding of all industries in 2014.  Through the third quarter, corporate venture groups have invested $1.3 billion in 257 deals in the software industry, representing 42.4% of total dollars invested by corporate venture groups year to date.  As a percentage of overall venture investing in the software industry in 2014, corporate venture represents 9.4% of total dollars invested and 19.7% of deals.

The media and entertainment industry has received the second highest level of corporate venture investing with $499 million going to 61 deals, representing 16.1% of total dollars invested by corporate venture groups year to date.  As a percentage of overall venture investing in the media and entertainment industry in 2014, corporate venture represents 11.6% of total dollars invested and 17.1% of deals.

The biotechnology industry has received the third highest level of corporate venture investing with $491 million going to 74 deals, representing 15.9% of total dollars invested by corporate venture groups year to date.  As a percentage of overall venture investing in the biotechnology industry in 2014, corporate venture represents 12.3% of total dollars invested and 21.1% of deals.

Corporate venture investing in the life sciences sector—which includes biotechnology and medical devices—remains very strong in 2014.  Year to date corporate venture groups have invested an estimated $680 million in 106 deals in life sciences companies, representing a combined 22% of total dollars invested by corporate venture groups.  As a percentage of overall venture investing in the life sciences sector in 2014, corporate venture represents 11.5% of total dollars invested and 18.5% of deals.

Click here to download corporate venture investing data.

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