Corporate Venture Capital (CVC) arms have been increasingly active in fueling innovation and growth across various industries. These strategic investments not only provide financial backing but also open doors for startups to leverage the resources and expertise of established companies. Here’s an overview of the main areas where the most active CVCs from different sectors have been placing their bets, along with the investment rounds that have been prominent in these industries.
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Software Sector Investments:
Main CVCs under analysis: Google Ventures, PayPal Ventures, Kakao Ventures, Gradient Ventures, Prosus Ventures, Climate Pledge Fund, Salesforce Ventures
Typical Investment rounds: Series A (27%), Seed (25%), Series B (15%).
Companies with roots in software have been at the forefront of advancing technology across multiple domains. Their CVC arms have primarily focused on:
- Information Technology: Driving digital transformation and infrastructure development.
- Software and Artificial Intelligence (AI): Enhancing software capabilities and fostering AI advancements for smarter solutions.
- FinTech: Innovating financial services through technology integration.
- Health Care: Improving patient care and health systems through software applications.
Financial Services Sector Investments
Main CVCs under analysis: SMBC Venture Capital, Zürcher Kantonal Bank, Sumitomo, ADB Ventures, Saison Capital
Typical Investment rounds: Seed (33%), Series A (28%), Series B (22%).
CVCs from financial services have shown a strong interest in sectors that align with their core capabilities and future growth potential:
- Information Technology and Artificial Intelligence (AI): Streamlining operations and customer experiences with intelligent systems.
- FinTech: Revolutionizing financial transactions and services with new-age technology.
- Healthcare and Biotechnology: Leveraging financial expertise to push boundaries in health sciences.
- Software and SaaS: Facilitating scalable software solutions for diverse needs.
Hardware/Consumer Electronics Investments
Main CVCs under analysis: Intel Capital, Lenovo Capital and Incubator Group (LCIG), Hitachi Ventures, NVIDIA
Typical Investment rounds: Series A (25%), Series B (21%), Seed (18%)
For companies in the hardware and consumer electronics space, investments are geared towards enhancing physical and digital integrations:
- Manufacturing and Robotics: Innovating production techniques and robotic applications.
- Software and AI: Bridging hardware with cutting-edge software for seamless user experiences.
- Electronics: Creating advanced consumer and industrial electronics.
Crypto Sector Investments
Main CVCs under analysis: Binance Labs, Coinbase Ventures
Typical Investment rounds: Seed (62%), Series A (19%), Pre-Seed (10%)
As the digital economy evolves, CVCs in the crypto space are looking at the future of decentralized technologies:
- Blockchain and Cryptocurrency: Building the infrastructure and currency of the future.
- Web3 and Gaming: Enabling new online experiences and economies.
- Financial Services: Integrating crypto solutions within traditional financial frameworks.
Pharma Sector Investments
Main CVCs under analysis: Bristol-Myers Squibb, Leaps by Bayer
Typical Investment rounds: Series B (50%), Series A (25%), Series C (17%)
Pharmaceutical companies are investing heavily in areas that promise breakthroughs in health and medicine:
- Biotechnology and Healthcare: Pioneering next-generation treatments and health solutions.
- Medical and Therapeutics: Developing innovative medical devices and therapeutic approaches.
- Pharmaceutical: Advancing drug development and personalized medicine.
Insurance Sector Investments
Main CVCs under analysis: MassMutual Ventures
Typical Investment rounds: Series A (57%), Series B (14%), Series C (14%), Seed (14%)
Insurance firms are prioritizing investments in digital solutions and financial integration, to boost operational efficiency and deliver innovative, personalized products. They are also emphasizing cybersecurity, regulatory compliance, and sustainability to manage evolving risks and align with responsible business practices.
- Financial Services: Insurance CVCs invest here to leverage tech for better risk management and customer engagement.
- Information Technology: Focused on enhancing cybersecurity, automating processes, and supporting digital transformation.
- FinTech: Investments target innovative financial solutions to improve customer experience and introduce new business models.