AAA GCVI Summit 2020: Data point presentation – the state of the industry

GCVI Summit 2020: Data point presentation – the state of the industry

Martin Haemmig, an adjunct professor at the Technical Centre for Mechanical Industry and the Glorad Centre for Global R&D and Innovation, took the stage and showed data identifying global corporate venture capital industry’s latest trends.

Haemmig pointed out that investment firms based in the US and Asia are increasingly investing in European technology companies. He deduced the reasons for this trend were that Asia-based venturers found a value play in European tech firms, which were less expensive than their Silicon Valley counterparts, while US-based investors found value in a new marketplace.

Haemmig showed that when corporate venturers took part in early-stage funding, deals were 85%-180% larger than when there were no corporates involved.

In terms of both initial public offerings and mergers and acquisitions, it took longer to exit when corporate venturers were involved in the round and the exit multiples were lower than when no corporates were involved.

Haemmig recommended investors consider and research opportunities throughout the world and analyse the available data before handing the decision off to local consultants. He concluded that strategising actions and understanding their consequences would lead to smarter exits, particularly when it came to acquisitions.

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