The virtual state of corporate venture capital today – TipsClear
When going Gets harder, it is common for some corporate patriarchs to head for the hills.
Today, it is a narrative that is re-emerging in the midst of the COVID-19 crisis. According to the Global Corporate Corporation, global corporate venture deals fell to 486 in April / May of 2019, in the same period of the same year.
However, institutional VC deals are also declining, with PitchBook anticipating a drop in transaction volumes over the next several quarters, as well as a valuation drop.
It remains to be seen what it will be like this time, but I believe corporate venture capital (CVC) will not only stick around, but will be an important part of the innovation ecosystem.
I know that Merck Global Health Innovation Fund (MGHIF) is fully committed to venture. Now, more than ever, health innovation is important. Second, we understand that most of today’s successful companies were funded in times of uncertainty. In fact, to put our money where our mouth is, we recently completed two foster, three follow-on investments, and two new deals in 2020 – ever since COVID hit. We intend to increase that momentum going forward in 2020 and beyond.
It was not easy when you cannot venture into the world, it is difficult to meet the founders and to work as we have done in the past. But it is possible, if you do some innovation of your own and set up a functioning system to perform the CVC.
Here’s how we did it.