The following is an excerpt from 500’s latest report, Unlocking Corporate Venture Capital.
2019.10.25
Bedy Yang
The following is an excerpt from 500’s latest report, Unlocking Corporate Venture Capital.
How has corporate venture capital changed?
In the decade since the Great Recession, we have seen digital upstarts – taking advantage of disruptive technologies from AI to IoT – reshape the economy and the corporate pecking order.
Conventional wisdom dictated that incumbents should focus their innovation efforts on R&D and growing their cash cows while investing in a few startups. But the rate of change has accelerated and with it, the balance of internal versus external investment. We believe the new corporate landscape calls for new strategies.
As one of the most active, early-stage investors in the world¹, 500 Startups has a unique perspective on the innovation economy.
Since 2010, we’ve invested in over 2,200 startups through our funds. Through our ecosystem building initiatives, my team and I have educated more than 500 venture investors, including corporate venture capital (CVC) units. We’ve also advised leaders of some of the largest companies exploring this challenging environment on the creation and development of their corporate venture investing programs and funds.
We anticipate that corporates have an increasingly outsized role to play in the startup ecosystem, and our conversations with C-Suite executives have revealed the extent of the challenges they face while also highlighting new opportunities for growth.
This report is the result of an extensive survey we conducted on corporate venture capital units. We surveyed over a hundred practitioners on the changing role of the corporate venture investor. Today, we’re excited to share the story behind that transformation.
We thank those that were able to participate in this report and look forward to continuing this conversation and driving our industry forward. We hope our 2019 CVC Report guides your innovation journey.
Bedy Yang
Managing Partner
¹Based on Pitchbook analysis as of June 27, 2018, of all equity investments made into privately held companies from 2013 to 2017, excluding governmental organizations.
2. AS OF 30 JUNE 2023 AND INCLUDES PRIVATE, PUBLIC AND EXITED COMPANIES. FOR EXITED POSITIONS, VALUATION DATE IS DATE OF EXIT. THESE FIGURES ARE ESTIMATES, AGGREGATED ACROSS ALL PORTFOLIO COMPANIES HELD ACROSS ALL FUNDS ADVISED BY 500 STARTUPS MANAGEMENT COMPANY, LLC AND ITS AFFILIATES, AND ARE BASED ON INTERNAL DATA THAT HAS NOT BEEN EXTERNALLY VERIFIED AND RELIES ON PORTFOLIO INFORMATION SUPPLIED BY EXTERNAL SOURCES WHICH HAS NOT BEEN VERIFIED, MAY NOT BE ACCURATE OR UPDATED. THESE VALUATIONS ARE ESTIMATED IN ACCORDANCE WITH 500 GLOBAL’S VALUATION POLICY. SEE 500.CO/COMPANIES FOR A FULL LIST OF PORTFOLIO COMPANIES. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS. PORTFOLIO COMPANIES DISPLAYED ON THIS PAGE ARE NOT NECESSARILY REPRESENTATIVE OF ALL INVESTMENTS IN VEHICLES MANAGED BY 500 STARTUPS MANAGEMENT COMPANY, L.L.C. (TOGETHER WITH ITS AFFILIATES, “500 GLOBAL”) AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENTS WILL BE PROFITABLE OR THAT OTHER INVESTMENTS MADE IN THE FUTURE WILL HAVE SIMILAR CHARACTERISTICS OR RESULTS. THIS LIST INCLUDES CURRENT AND FORMER 500 GLOBAL PORTFOLIO COMPANIES WHICH HAVE BEEN ACQUIRED AS WELL AS COMPANIES WHICH HAVE UNDERGONE AN INITIAL PUBLIC OFFERING. THIS LIST IS UPDATED PERIODICALLY AND AS SUCH MAY NOT REFLECT RECENT 500 GLOBAL INVESTMENTS. PAST RESULTS OF 500 GLOBAL INVESTMENTS, POOLED INVESTMENT VEHICLES, OR INVESTMENT STRATEGIES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. NO CONTENT ON THIS PAGE SHOULD BE CONSIDERED AS AN OFFER TO SELL OR SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES, CONSTRUCTED AS FUND MARKETING MATERIALS BY PROSPECTIVE INVESTORS CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL FUND, OR USED AS THE BASIS FOR ANY INVESTMENT DECISIONS. ALL LOGOS, NAMES, AND TRADEMARKS OF THIRD PARTIES REFERENCED HEREIN ARE THE TRADEMARKS AND LOGOS OF THEIR RESPECTIVE OWNERS. ANY INCLUSION OF SUCH TRADEMARKS OR LOGOS DOES NOT IMPLY OR CONSTITUTE ANY APPROVAL, ENDORSEMENT OR SPONSORSHIP OF 500 GLOBAL BY SUCH OWNERS.
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