Quarterly Spotlight - Corporate Venture Capital Deal Analysis - Q1'2024

In Q1 2024, deal activity of corporate venture capital (CVC) funds continued to decline, mirroring the soft venture capital market. Despite low deal volumes, CVC funds strategically invested to support the global strategies of their parent companies.

Deal activity dropped 12% compared to the previous quarter, while capital investments grew just 1%. Around 80% of CVC capital was invested in North American and Asian targets during Q1. Software, biotech, and pharma start-ups attracted approximately 40% of the total capital, along with increased investments in semiconductor and B2B product manufacturers.

Leading companies like OKX, Sumitomo Mitsui, Alphabet, Coinbase, and Intel maintained consistent CVC spending, with the top 20 active investors completing around 300 deals since the beginning of 2024. CVCs primarily serve as a barometer of their parent companies' strategic initiatives and play a pivotal role in building corporate technology capabilities. Consequently, CVCs are expected to continue focusing on emerging technologies such as Artificial Intelligence, ClimateTech, Generative AI, and the Internet of Things.

This first edition of the Quarterly Insights on Corporate Venture Capital Deal Analysis provides insights into the global CVC investment activity, highlighting key sectors, active CVC funds, and significant deals completed in the quarter.