In the latest edition of Blueprint, GCV editor Maija Palmer wonders whether the recent spate of new funding announced by established and successful European CVCs is a sign of hope returning.
Happy Star Wars Day (May the 4th be with you). It is a day when many in the tech sector like to quietly acknowledge their inner Star Wars nerd, and it seems appropriate to also be celebrating a steady trickle of capital coming back into corporate venture, like the Rebel Alliance gathering strength for the next battle against the Empire.
It may not be quite the frenzy of corporate money seen during boom years like 2017 or 2021, but any week when nearly $700m of new corporate venture funding is announced is a good one.
BMW i Ventures is raising a new $300 fund, Bosch has committed €200m to venture building, and Northwestern Mutual has added another $150m to its investment pool.
It is worth noting that the bulk of the money in this trio is coming from European corporations — part of a growing Europe’s revival as a force in business and defence? Marcus Behrendt and Kasper Sage, BMW i Ventures’ two managing partners, talked about wanting to make a statement.
What is also encouraging about this new capital is that it comes from companies that now have built a long experience in CVC. This is not the bravado of a newly–setup fund but the quiet confidence of a fund that now has a track record of success. The reason BMW can recapitalise i Ventures is because previous funds returned cash.
So, if corporate inertia is the Darth Vader-led Empire and corporate innovators are the plucky Luke Skywalkers in this analogy, it feels like one of those hopeful moments in the long movie saga, where the tide is turning in favour of the Rebels. The war is not won, perhaps, but hope is returning.
It may be a good time for those corporations who do not yet have a corporate venture arm to think again about establishing one. There is a growing set of examples of how to achieve success with the model, across a number of industries.
For those who might be thinking of taking the plunge, we’re running a webinar on May 20 discussing how to launch a new CVC unit: how to sell the concept internally, shape objectives and secure internal support. We’ve just opened up registrations — secure your free place here.
This editor’s note was first published in GCV’s Blueprint newsletter, which tracks corporate venture news, key deals, new funds best practice and jobs.
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Maija Palmer
Maija Palmer is editor of Global Venturing and puts together the weekly email newsletter (sign up here for free).
