Global Corporate Venturing has just closed its annual survey, which forms a definitive overview of the industry. The World of Corporate Venturing 2020 report will be published in January.
Here are two results from last year’s survey. Corporate venturing funds, like investment funds, are assessed on performance. When comparing a portfolio’s worth to net asset value by multiple, most corporate investors (65%) claim to stand at between 100% and 200%.
The venture capital business inevitably involves bad bets and losses due to the high degree of uncertainty and risk in startups. Naturally, the lower the number of bad bets, the better the overall performance of the fund. More than three-quarters corporate venturers (77%) say the loss rate of their fund – defined as the percentage of investments that fail to return the capital invested – is 30% or lower. This could be accounted for by the industry expertise that corporate venture firms possess.
What will this year’s survey hold?
