Telecoms investment funds had a boom in 2014-16 which has not been repeated since. But 2021 saw signs of an uptick with telcos in emerging markets creating investment funds.
Author: Kaloyan Andonov
Kaloyan Andonov is head of analytics at Global Corporate Venturing.
Telecoms incumbents part of $50bn worth of exits in 2021
Telecoms companies had 91 exits for their portfolio companies last year, with an estimated total value of $50bn.
Investments in telecoms startups halved in 2021
Corporate investors shied away from big funding rounds for telecoms startups, with the value of deals down to $2.42bn in 2021 from $5.14bn the year before.
Only energy and gaming still buoyant as corporate investing halves in value
Corporates have dramatically slowed down the rate at which they invest in startups, except in these two sectors.
People moves: corporate investors in the IT sector
These were some of the key people moves in corporate venturing departments in the IT sector over the past year.
New IT corporate venture funds
Some 37 newly-launched or refunded venturing units made investments in the IT sector between June 2021 and May 2022.
Exits for IT sector investors
Corporate venturers from the IT sector completed 191 exits between June 2021 and May 2022 – 125 acquisitions, 30 IPOs, four mergers of equals, six buyouts and 26 other transactions.
Top deals for IT corporate investors
Corporates from the IT sector invested in multimillion-dollar rounds in a variety of sectors – telecoms, consumer, transport, health and IT.
University and government backing for IT companies
By the end of 2021, there were 226 rounds raised by university spinouts, up 9% from the 207 registered in the previous year.
Tech companies slow investment activities
GCV recorded just 205 deals worth $7.42bn involving corporate investors from the IT sector in Q2. That is down more than 60% from last year.
Is balance sheet investing really so unfavourable?
For corporate venturers, is it better to invest directly from a corporation’s balance sheet or from a stand-alone fund?
Cleantech is the bright spot as energy deal values fall
The dollar valuation of corporate-backed deals in the energy sector dropped sharply in Q2. Cleantech deals are the only exception.
Corporate venturing deal value down 42% in Q2
Corporates are still investing in startups but valuations have fallen dramatically. Some areas such as China and healthcare have been hit hard.
CVC case study: Prologis Ventures’ lean team
The 10-person team at Prologis Ventures is on the smaller end of the scale but has made 37 investments over the past six years.