Steady is the assessment that comes to mind, rather than remarkable, when probing the year-on-year direction of corporate venture capital investment in university spinouts.
Against a backdrop of annual rises in overall dealflow tracked by Global University Venturing since 2016, the proportion of rounds featuring corporate investors remained static at around 30% in 2017 and 2018.
While the numeric count hit a four-year high of 226 last year from 147 in 2017, in percentage terms neither year could match 2015 or 2016, when corporates participated in about 35% of transactions.
Such fine detail risks pedantry, as the overall picture shows corporate investment in spinouts is in rude health – unsurprisingly, given the dynamic benefits both parties. Corporations not only provide an important source of growth capital, but also offer expertise and distribution opportunities in specific areas, while investors admire academia as a pool of scientific innovation and entrepreneurial talent.
CVC investors often wait until growth or later-stage rounds, eschewing less mature proposals, including many early university projects, where the strategic value…
