The unicorns
Perhaps no greater theme has been on the minds of those in the venture capital sector than the proliferation of unicorns – venture-backed private companies securing valuations of more than $1bn – which now stand at about 140 at the time of writing, nearly double the number in 2014, based on the separate unicorn trackers of Dow Jones VentureSource and CrunchBase.
The creation of billion-dollar companies has created much debate, with investors by turns rubbing hands at the thought of the paper gains they have created, and wringing them fearing the valuations are merely the results of a giant tech bubble. Venture capitalist Sir Michael Moritz, of Sequoia, has even coined the term “sub-prime unicorn” to express the fear that many of these valuations are illusory. As we enter the new year the debate rages on.
Intel Capital succession
“Corporate venturing history” seems a strong phase, as corporate venturing is derivative of the strategy of the wider corporate. Yet those attending the Intel Capital Global Summit to see the handover of the reins from former head Arvind Sodhani to incoming head Wendell Brooks were made to feel something momentous was afoot.
Amid the changeover, witnessed by more than 1,100 attendees from the venture capital, corporate and startup worlds, Brooks described Sodhani as a “Silicon Valley Icon”, having overseen Intel Capital’s growth to more than $11bn invested during its history. At the same time Brooks set out his plans for Intel Capital, which included a greater commitment to leading rounds.
Google spells out the Alphabet
One of the bigger pieces of corporate branding and organisational news in recent times was the decision by search engine company Google to rename itself Alphabet, reflecting attempts by the company to diversify beyond search.
While corporate venturing unit Google Ventures is investing across the spectrum of relevance for Alphabet. It will be of significant interest if the group’s wider investment activities, including the more openly strategic unit Google Capital, change in any way, with the Alphabet rechristening.
Bitcoin moves to the blockchain
The financial industry’s investment units are getting excited about the blockchain, the ledger that records transactions in cryptocurrency bitcoin. This trend is intriguing, as bitcoin is still regarded as taboo by many financial institutions, yet some are growing keen on investing in bitcoin companies as well. Others are keen to find ways to use the ledger innovation of the blockchain in a way distanced from the controversial cryptocurrency. The innovations in this space seem well worth watching for all interested in technology.
Robotics and drones
Advances in robotics are moving at an astounding pace, with consumer adoption of drone technology and wider business use of robotics being a big trend during the year.
IoT
The internet of things as an industry-wide trend is reaching fever pitch. Every corporate investor is intrigued and attempting to understand the applications of a proliferation of objects connected to the internet.
China equities hits a bump in the road, but VC investing continues apace
In the summer there was a sharp dip in the value of Chinese equities. However, public market jitters did not dim the enthusiasm for venture investing and corporate venturing in the region. In fact the country appeared on course for five billion-dollar exits in 2015, with huge investments being made this year on a regular basis by the country’s technology giants both inside and outside China.