A report by the BVCA on the state of corporate venture capital (CVC) in the UK describes CVC as the missing piece in the puzzle of how to engage corporate investment in the UK, if only the policy mix can be got right.

Consolidation requirements for corporate venture investors, regarding accounting treatment of ownership of SMEs in which they make early stage equity investments, should be reviewed, according to policy recommendations set out in “The Missing Piece”, a 62-page report on “How Corporate Venture Capital can transform UK finance and funding”, published by the British Private Equity & Venture Capital Association (BVCA).

The report also suggests that the early stage investment incentives deployed by the UK Government – the Enterprise Investment Scheme (EIS)…