Question 1

What is "CVC" or "Corporate Venture Capital"?

Accepted Answer

Corporate Venture Capital (CVC) is a form of venture capital where a corporation invests directly in external startups. These investments typically aim to gain strategic benefits such as accessing innovation, diversifying revenue streams, or exploring new markets, in addition to financial returns.

Question 2

Is Open Innovation, Corporate Venturing, and CVC the same?

Accepted Answer

No, they are related but distinct. Open Innovation involves collaborating with external entities like startups, universities, or research institutions to drive innovation. Corporate Venturing encompasses broader initiatives like partnerships, accelerators, and joint ventures. Corporate Venture Capital (CVC) focuses specifically on equity investments in startups.

The most sophisticated companies pursue all three approaches, often starting with open innovation, then adding corporate venturing, and finally CVC. However, some firms have built highly successful CVCs without extensive open innovation or corporate venturing initiatives, depending on their strategy and goals. Note: more than 75% of the top 20 firms in the world have active CVC units.

Question 3

When did Corporate Venture Capital become popular?

Accepted Answer

CVC became prominent during major technological disruptions: computing in the 1970s, the internet in the 1990s, and mobile technology in the 2000s. However, the last 10–15 years have been unprecedented, with a surge in CVC activity. There are now 10 times as many CVCs as there were before 2000, driven by the need for innovation and competitiveness.

Question 4

How many Corporate Venture Capital (CVC) units exist globally?

Accepted Answer

The largest concentrations of CVCs are in the United States, followed by Japan and Europe, but they exist worldwide. Many new CVCs are launched monthly, even in emerging markets. For instance, there are now over 50 active CVCs in the Middle East and Africa, reflecting the global appeal and rapid adoption of corporate venturing.

Question 5

In which industries are CVCs most commonly established?

Accepted Answer

CVCs are most common in technology, telecoms, financial services, FMCG, energy, healthcare, manufacturing, retail, agritech, mobility, and logistics. Industries facing rapid disruption or requiring ongoing innovation tend to adopt CVC strategies more readily.

Question 6

In which countries do successful CVCs operate?

Accepted Answer

Successful CVCs are found globally, with the highest activity in the United States, Japan, and Europe. Emerging markets, including South Africa, Nigeria, Kenya, Egypt, Tunisia, and Morocco, are also rapidly adopting CVC initiatives.