Stephen Socolof, managing partner of New Venture Partners, a venture firm specialising in corporate spin-outs, has been named chair of the Corporate Venture Group Advisory Board of trade body the National Venture Capital Association (NVCA).
NVCA president Mark Heesen said: "As market dynamics have compelled larger companies to embrace ‘open innovation’ to drive growth, corporate venture arms are making a significant positive impact by investing in entrepreneurial startups that offer a strategic benefit to the overall organization. With 38 percent growth in our corporate VC membership last year alone, it is an exciting time for innovation across a diverse set of industries and geographies, and we expect this momentum to continue."
Socolof added: "I am honored to represent this growing constituency within our industry as the landscape continues to evolve. The number and presence of CVG organizations is increasing, and there is a great opportunity to help them play a stronger role in the venture capital community."
Socolof is a member of New Venture Partners’ investment committee since 2001. He joined Lucent Technologies in 1996 to establish US-based technology company Lucent’s New Ventures Group which incubated activity from Bell Labs. He previously worked at consultancy firm Booz, Allen & Hamilton.
The NVCA said corporates invested in 18.6% of all US venture deals and contributed 8.4% of dollars, in the first quarter of 2012. This compared to participation in 14.8% if deals and provided 7.5% invested in the fourth quarter of 2011.
Global Corporate Venturing figures for the quarter tracked 236 investment in corporate venturing backed companies globally worth $4.7bn. This was down by value and number from the 260 investments worth $5.3bn in the final quarter of 2011.
Separately Fenwick & West said corporate venture capital investment had risen from $1.4bn in 2009 to $2bn in 2010 to $2.3bn in 2011. The corporate venturing firms had participated in 12.7% of all venture deals in 2009, 13.6% in 2010 and 14.9% in 2011. In 2007 corporate venturing firms invested in $2.6bn of transactions and participated in 19% of deals.