Comment by Nick Yusko, chief executive and chief investment officer, 
Morgan Creek Capital Management

Modern corporate venture capital (CVC) was first established in North America, and in 2014, US corporate investments accounted for 61% of global activity.

In recent years, tech giants such as BAT (Baidu, Alibaba and Tencent) have hyper-charged Asia’s economic growth and have steadily increased their corporate investments in the region. By 2018, North America’s share of global investment activity dropped to 41% and Asia’s share doubled to 38%.

CVC activity in this region is expected to surpass that of North America in the coming years.

Asian CVC is comprised primarily of conglomerates from China, Japan, and India. The first significant CVC investment in China was in June 1998, when Shida Group invested RMB12m in Beijing Mingtai Technology Development Company, establishing Shida Mingtai Company to develop Chinese software.

Two decades later, in 2018, China’s CVC investment output reached RMB20.3bn, or 17% of all venture capital investments domestically.

According to Chinese local…

Subscribe to go deeper

GCV subscribers get access to all our proprietary data and deep-dive articles, as well as the global directory of CVC investors.



Not sure if you have a subscription?