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Enterprise venture capital follows the same trend as other venture capital markets: Up – TechCrunch

Like the world The startup investment market is reaching new highs in terms of dollars invested this year and deal volume is increasing in several regions, companies are diving into the action.

Data from CB Insights and Stryber indicate that institutional investors are engaged in deals that are worth more than ever, even though enterprise venture capital (CVC) transaction activity is not growing uniformly around the world.

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In a sense, it’s no surprise that CVCs have seen the deals they participate in grow in size – the global venture capital market has been trending toward larger deals and more dollars for some time now. But questions arise inside the mind-boggling numbers: How are private investors adjusting to a faster and more expensive venture capital market? We also wanted to know whether CVCs are shaking up their deal sourcing and whether the classic tension of venture capitalists between strategic investing and deploying capital for financial return is changing.

To help us understand the data we have at hand, The Exchange contacted M12’s Matt Goldstein, Sony Innovation Fund‘s Gen Tsuchikawa and Ventures‘Brian Walsh. (TechCrunch covered the latest outfit from CVC WIND Ventures here.)

Let’s talk data, then dig deeper into the nuance behind the numbers.

A boom in transaction value

Interestingly, it is difficult to accurately measure CVC activity. When we discuss the value of venture capital transactions, for example, what matters and what doesn’t is a matter of taste. For example, how to deal with the SoftBank Vision Fund. Do the transactions it conducts that include a participation in venture capital count as more venture capital activity during a given period? What about investments led by cross funds?

Regardless of your choice, the aggregate venture capital data will always include dollars invested by entities other than venture capital. So you do the best you can. CVC has the same problem, magnified. Because CVCs are often participatory in transactions, instead of leading them, especially in the later stages of investing in startups today, it is difficult to account for concrete investments in companies. We therefore proceed in the same way as for counting aggregate data on companies, including transactions in which a particular type of investor participated.

Perfect, no. But it’s consistent, and that’s probably what interests us the most. All this to say that when we look at the following data on transactions and dollars, CB Insights clearly notes that, for its purposes, “CVC-backed funding” and “CVC-backed agreements” refer to equity participation. – business risk in these funding cycles. “

Fair enough. According to CB Insights’ CVC H1 2021 report, CVCs were involved in $ 78.7 billion in fundraising activity in the first half of 2021, a record for a semi-annual period. This dollar figure was derived from some 2,099 transactions around the world. The exact strength of these numbers is unclear from their absolute scale.

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