Monthly analysis: April 2021

There has been much optimism in the world since the beginning of 2021, while the corporate venturing arena has seen a rise in deals, exits and funding initiatives at least since the successful development and approval of coronavirus vaccines. This trend continued in April as well and is strengthening, as many countries see vaccine rollouts and a gradual easing of pandemic-related restrictions. According to GCV Analytics, the number of corporate-backed deals from around the world was 336 in April, nearly 34% higher than the 251 rounds from the same month last year. Investment value stood at nearly $21.22bn in total estimated capital – nearly three times over the $7.31bn from April 2020, which was in the middle of a nearly global lockdown. According to GCV Analytics, the number of corporate-backed deals from around the world was 336 in April, nearly 34% higher than the 251 rounds from the same month last year. Investment value stood at nearly $21.22bn in total estimated capital – nearly three times over the $7.31bn from April 2020, which was in the middle of a nearly global lockdown. The US came first in the number of corporate-backed deals, hosting 143 rounds, while Japan was second with 53 and China – third with 32. The leading corporate investors by number of deals were internet and telecoms conglomerate SoftBank, diversified internet conglomerate Alphabet and internet and gaming company Tencent. In terms of involvement in the largest deals, SoftBank was top of the list along with investment management and financial services group Fidelity and consumer electronics manufacturer Sony. GCV Analytics reported 38 corporate-backed funding initiatives, including VC funds, new venturing units, incubators, accelerators and other. This figure is higher than the one from April 2020, which registered 21 initiatives. The estimated capital raised in those initiatives amounted to $3.02bn, 9% higher than the $2.76bn raised in the same month last year. Emerging businesses from the health, IT, financial and consumer sectors led in raising the largest numberof rounds in April 2021. The most active corporate venturers came from the financial, IT, media andindustrial sectors. Deals US-headquartered video game developer Epic Games closed a $1bn funding round featuring a $200m investment by Sony, valuing it at $28.7bn. Sony was joined by Fidelity, among many other investors. Epic specialises in multiplayer online games using its Unreal Engine, and its most famous titles are battle royale game Fortnite and first-person shooter series Gears of War. The company is looking to build a…

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