CVCs based in Germany constitute the largest and most mature community in Europe and with 25 responding units, represent the largest European component of the GCV Keystone data set.
Perhaps in response to economic headwinds, German CVCs are re-balancing portfolios away from Horizon 3 for shorter lead times to value. There is more focus on European opportunities, with a lower percentage targeting North America and Asia. Larger teams integrate venture clienting and CVC investing. Although emphasis on financial performance and VC level performance targets has fallen, there was a slight increase in penetration of retention-focused bonus programs that reward professional investors for venture returns.
CVC’s influence in VC ecosystem
17.2%
of German VC funding rounds include CVCs, participating in deals representing 57.8% of total value
CVC community maturity
80%
are established CVCs, with 44% having achieved ‘resiliency’
CVC fund size
59%
have assets under management (AUM) of more than $100m, with 37% exceeding $300m
CVC role in corporate innovation
36%
rate creating new businesses and supporting existing businesses as their top priorities
Corporate venturing toolkit
40%
have separate venture client programmes, 32% have venture building units
CVC operating model
72%
invest from the balance sheet, with 52% theme and business unit priorities-driven
Geographic investment focus
75%
invest in the US and Canada and 48% in Asia-Pacific, in addition to Europe
Financial performance targets
43%
have VC-level or top-quartile financial targets, with 33% aiming to ‘not lose money’
Team size and structure
60%
have teams larger than five people, with 57% of teams averaging more than five years of experience
CVC compensation levers
27%
of units have a financial upside programme (‘carry’), 23% offer spot bonuses
Contents
GCV provides the global corporate venturing community and their ecosystem partners with the information, insights and access needed to drive impactful open innovation. Across our three services - News & Analysis, Community & Events, and the GCV Institute - we create a network-rich environment for global innovation and capital to meet and thrive. At the heart of our community sits the GCV Leadership Society, providing privileged access to all our services and resources.
