Corporate VC investments growing rapidly

Cisco, IBM, Intel, HP, Microsoft driving key investments

In the first half of 2007, corporate venture-capital groups -- those that are part of a larger corporation, not a private firm -- invested in start-up companies at levels rivaling those reached in 2001.

Corporate venture capitalists poured US$1.3 billion into 390 deals during the first half of the year, according to the MoneyTree Report, which was compiled by PricewaterhouseCoopers and the National Venture Capital Association (NVCA) based on data from Thomson Financial. These venture capitalists participated in 21 percent of the deals made during the first half of the year, the report says, up from 20 percent during the same time period last year.

Investments by corporate venture capitalists have reached "the highest levels post-bubble," according to Mark Heesen, president of the NVCA, in a written statement.

Many say frenzied investment activity by industry giants -- including Cisco, IBM, Intel, HP and Microsoft -- played a role in creating the Internet bubble, as big corporations looked to cash in on the IPO craze, as well as to get their hands on the latest technology being developed in young entrepreneurs' garages and basements. Corporate venture capitalists fund start-ups as an investment, but also because investors taking a financial stake in a company often are granted access to new technology and innovation, says Darrell Pinto, director of global private equity at Thomson Financial.

Corporate venture capitalists are digging deeper into their pockets this year because their parent companies' earnings are experiencing "positive momentum," Pinto says.

The majority of funding by these investors in 2007 is going to later-stage companies, as was the case in 2006.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Cara Garretson

Network World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Luke Hill


I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?