Corporates are still investing in startups but valuations have fallen dramatically. Some areas such as China and healthcare have been hit hard.

Corporate venture activity dropped noticeably in the second quarter, with the number of rounds involving a corporate backer down 8% from the same period last year. The total value raised in those rounds was down 42% from the year-ago period.

The drop in the number of deals is much smaller, however, than for the overall VC industry, which has seen a 30% decline in the number of rounds in the second quarter. The overall value of VC investments, however, fell just 28.5% in Q2.

In short: corporates appear to be much more constant investors as the downturn begins to hit, but they are migrating to smaller deals and far lower deal values.

Global view of deals Q2 2022

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Kaloyan Andonov

Kaloyan Andonov is head of analytics at Global Corporate Venturing.