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It's time for another Flyby newsletter, where we help you stay sharp with innovation trends and insights.
In today’s newsletter:
- Quick Hits: Venturing into Growth: How AI and New Businesses are Reshaping Corporate Strategy
- Research: Unveiling the Unexpected Paths of CVC-Backed Startups
- Industry Radar: To keep you ahead on industry trends
Let’s open the vault
🗞️ Quick Hits
Short & sweet—news that caught our eye this week.
📊 How corporate venture building is becoming a pivotal growth strategy in the current economic climate. CEOs now prioritize venture building, even amid inflation and high interest rates, with leading companies achieving a 2% revenue growth edge. The role of technology is crucial, as 60% of CEOs aim to develop AI-enabled ventures to transform industries such as healthcare and finance. By unlocking hidden assets and following six key actions for success, businesses can effectively harness this transformative strategy.
Source:McKinsey
Find here the full research
📡 Research - Unveiling the Unexpected Paths of CVC-Backed Startups
The research examines the significant role of Corporate Venture Capital (CVC) in US venture capital from 2014 to 2024, highlighting the gap between high investment involvement and low acquisition rates, while exploring sector trends and future M&A potential.
- CVC Influence and Acquisition Discrepancies: From 2014 to 2024, Corporate Venture Capital (CVC) investors accounted for over 46% of US VC deal value annually, but acquisitions of their portfolio companies remained below 4%. This challenges the notion that CVC investments naturally lead to mergers and acquisitions.
- Sector Dominance and Strategic Focus: Technology and life sciences dominate CVC deals, indicating a strategic focus beyond immediate financial gains. These investments often serve as market intelligence, with CVCs acting as trend detectors and mitigating risks for potential future acquisitions.
- Future Outlook and M&A Dynamics: Improvements in market conditions, like lower inflation and reduced regulatory scrutiny, are anticipated to boost M&A activity by 2025. Mixed historical outcomes, such as Salesforce's successes and Nestlé's challenges with Freshly, highlight the complexities and evolving nature of CVC strategies.
Check out the recent research on our website.
📡 Industry Radar
Stay ahead of the curve— some of the hottest news and trends across our reference industries paired with some bonus insights from FounderNest.
🔋 Oil and Energy - Equinor's Bold Pivot: From Green Dreams to Oil Ambitions
Equinor slashes its renewable investments by half while boosting oil and gas production by 10%, citing slow green transition and high costs. The contentious Rosebank oil field moves forward amid legal and environmental challenges. This shift, echoed by other energy giants, raises questions about the future of sustainable energy and climate goals.
🍏 Food and Beverages - NMR Technology: Revolutionizing Food Production with Precision and Sustainability
Nuclear Magnetic Resonance (NMR) technology is transforming the food industry by offering unparalleled precision, efficiency, and sustainability. This innovative approach provides real-time, chemical-free analysis for various applications, from tracking sodium content in snacks to ensuring product consistency
🏥 Healthcare - Pharma Giants Shift Gears: Are Partnerships the New Acquisitions?
While M&A activity lags in healthcare, a curious trend emerges: Big Pharma is increasingly choosing partnerships over acquisitions to tap into AI and innovative technologies. Is this cautious approach a missed opportunity, or a strategic pivot that will redefine the future of drug discovery and development?
FounderNest Bonus: We were curious to learn more about the recent partnerships that major pharmaceutical companies, such as Bristol Myers Squibb, have formed over the years. To explore this, we asked our Competitive Intelligence module, and below are some of the insights we received. Find out how we can help—contact us for more information.
🤖 Technology: 2025's AI Curveballs: Five Predictions You Didn't See Coming
Rise of generative virtual worlds, advancements in AI reasoning capabilities, increased AI use in scientific research, growing integration with national security, and potential shifts in the AI chip market. These predictions offer a glimpse into how AI might evolve beyond current expectations, impacting various sectors and our daily lives.
📦 Retail and Logistics - Drone Deliveries: Sky-High Potential for Retail and Logistics
The retail and logistics sectors are on the brink of a transformative shift driven by drone technology. PwC's report reveals that B2C drone deliveries are projected to skyrocket from 5 million shipments in 2024 to a staggering 808 million by 2034. This exponential growth promises to reshape last-mile logistics, offering cost reductions, improved service in remote areas, and significant environmental benefits.
👩🌾 Farming and Agriculture -AgTech Investment Plummets in 2024, but Recovery Looms on the Horizon
Venture capital investment in agtech startups experienced a significant downturn in 2024, with deal values falling 25.6% and deal counts decreasing 24.3%. Despite the overall decline, the median deal value reached a record high of $3.6 million, driven by increased focus on late-stage startups. Investors favored established companies and those addressing global challenges like food security and climate change.
📈 Banking: Regulatory Tug-of-War: Coinbase Pushes for Crypto-Banking Clarity as FDIC Reveals Past Resistance
Coinbase is urging federal regulators to remove barriers limiting banks' involvement in cryptocurrency services, while the FDIC has released documents showing its historical resistance to such activities. Acting FDIC Chair Travis Hill acknowledges past obstacles and promises a reevaluation of the agency's approach to crypto-related activities.
FounderNest Bonus: Are you aware of the latest technologies driving crypto? We asked our Market Intelligence tool to learn more, and below are a few insights we've gathered. Find out how we can help—contact us for more information!
💊 Pharma - Bain Capital's Bold Move in Japanese Pharma
Bain Capital's $3.3 billion acquisition of Mitsubishi Tanabe Pharma marks a significant shift in Japan's pharmaceutical landscape, highlighting untapped growth potential in the country's life sciences sector.
✈️ Aeronautics and Aviation - Boom Supersonic's XB-1: Ushering in a New Era of Supersonic Travel
Boom Supersonic's XB-1 prototype has achieved a significant milestone by breaking the sound barrier, reaching Mach 1.122 at an altitude of 10.7 kilometers. This successful test flight validates critical technologies for Boom's ambitious Overture airliner, designed to fly at Mach 1.7 and potentially halve flight times on many transoceanic routes.
FounderNest Bonus: We wanted to learn about companies addressing similar challenges, so we used our Similar Companies tool to identify those comparable to Boom Supersonic. Below are a few of them. Find out how we can help—contact us for more information!
🏭 Manufacturing - Manufacturing's Crossroads: Navigating Uncertainty in 2025
US manufacturing faces a complex 2025, balancing cooling investment with persistent challenges like high costs and geopolitical risks. Talent shortages persist despite a stabilizing labor market, pushing manufacturers to prioritize workforce strategies and AI-driven solutions. Supply chain disruptions and elevated costs demand agility, while strategic investments in clean technology and smart operations offer paths to long-term growth amid uncertainty.
🚘 Automotive - The Future of Cars: NXP's Bold Move in Software-Defined Vehicles
NXP Semiconductors' acquisition of TTTech Auto for $625 million marks a pivotal moment in the automotive industry's shift towards software-defined vehicles (SDVs). This strategic move aims to revolutionize car technology, enabling feature upgradeability and data-driven services. While the advancements promise enhanced safety and user experience, they also bring challenges such as increased repair costs and environmental concerns.
