Citigroup has been ranked the most influential financial services corporate venturing unit, in the November issue of Global Corporate Venturing.
Although the US-based bank has been a long-term investor in venture capital and private equity, Citigroup had run its Growth Ventures and Innovation as a specialist unit to work with external venture capitalists and entrepreneurs, help develop the products and services that will influence its future and partner with and invest in nascent internal and external operations.
The unit is led by Deborah Hopkins, chief innovation officer at Citi since May 2008. The bank under its then-newly installed chief executive, Vikram Pandit, had wanted to prepare for the long term while dealing with the impact of the credit crisis on what was once the world’s largest bank.
Although the impact of a partial government bail out and issues from the credit crisis remain, such as the multi-billion dollar litigation by leveraged buyout firm Terra Firma over its acquisition of music company EMI after alleged discussions with a Citi employee, the Growth Ventures and Innovation division has developed a number of initiatives within its incubation, spin-outs and minority equity investment models.
However, Citi’s progress has occurred while a number of peers in developed markets have withdrawn from venture capital investing. Research by Global Corporate Venturing of the top 100 financial services firms has shown a wholesale retreat compared to a decade earlier, although emerging markets banks and insurers are showing increased interest in helping nascent companies.