UK corporate venture capital activity ‘rose by 35% in 2016’

CB Insights

Corporate venture capital (CVC) deal activity in the UK increased by 35% in 2016 when compared to 2015.

According to CB Insights’ Global Corporate Venture Capital report, activity in India increased 50% over the same time period, while falling by 17% in China.

However, Indian CVC deal activity decreased significantly in Q4 2016, compared to a record Q3 2016, the report adds.

In the UK, CVC deal activity reached a record high in Q2 2016. Despite this, the report says deal activity fell from 22 deals in Q2’16, to 12 in Q3’16.

Notable UK CVC-backed deals in H2’16 included Deliveroo’s $275m Series E round and the $65m Series C closed by Darktrace.

A global perspective

Global CVC deal activity fell flat in 2016, the report claims, noting that it decreased by 2% throughout last year. Deals decreased by 21% in Q4 2016.

Some 107 new corporate funds made their first investment last year, representing a 20% increase to 2015. Approximately 75% of CVC deals made globally and completed in H2 2016 were made at the Seed, Series A or Series B stage.

Sector breakdown

According to the report, full-year CVC global deal activity to internet companies in 2016 increased by 4% while healthcare deals dropped by 3%.

Global CVC deals to mobile companies also fell by 18% throughout the year.

Interestingly, European healthcare doubled its share of CVC deals in the last quarter of 2016.