Corporate venture capitalists have remained surprisingly active in 2016 with their share of dollars going into U.S. startups hitting a 16-year record.
However, overall investing is down from a free-spending 2015. Through the first three-quarters of 2016, corporate investors put $5.2 billion to work with U.S. companies, a 20 percent drop from the first nine months of 2015, according to data from Thomson Reuters.
That parallels an overall 19 percent drop in venture dollars targeting U.S.-based startups from all sources.
But corporate investors accounted for 13.5 percent of venture dollars invested this year through September, topping last year’s 13 percent, according to the Thomson Reuters data. In 2000, the all-time annual record, 14.6 percent of venture dollars came from corporate investors.
Through the third quarter of 2016, 657 deals were funded by CVCs with an average deal size of $7.8 million. Both figures are down from 2015.
Top deals with corporate participation this year include Lyft’s $1 billion round, Magic Leap’s $793.5 million round, Oscar Health Insurance’s $400 million raise, Human Longevity’s $220 million round and Slack Technologies’ $200 million investment.
Downloadable Data in Excel: all-deals-with-corporate-participation-2016
Downloadable Data in Excel: corporate-venture-investing-by-year
Photo of corporate buildings courtesy of Reuters/Mark Blinch