Corporate Venture Capital Rebounds in Q1 2024, Driven By $100M+ Mega-Rounds – Research Report

Corporate venture capital funding rebounds in Q1’24, driven by $100M+ mega-rounds, according to an update from CBInsights.

CBInsights noted that Corporate venture capital (CVC) had “a solid quarter in Q1’24, with CVC-backed funding increasing by 26% quarter-over-quarter (QoQ), greater than the venture market as a whole.”

Driving this growth were mega-rounds (deals worth $100M+), which “accounted for 47% of the funding — their highest share since Q1’22.”

CBInsights also mentioned that CVC deal count “remained steady QoQ, again showcasing CVCs’ resilience compared to the broader venture market, which saw quarterly deals plummet to their lowest level in years.”

$15B CVC-backed funding in Q1’24.

Global CVC-backed funding “rebounded 26% quarter-over-quarter (QoQ) to reach $15B in Q1’24.” Nearly half ($7B) of this funding “came from $100M+ mega-rounds. Meanwhile, global deal volume was roughly flat, ticking up 1% QoQ to 851.”

33 Mega-round deals.

CVCs participated in 33 $100M+ mega-rounds “in Q1’24, tied for the highest total since Q3’22.”

The top 2 mega-rounds went “to Wonder ($700M, with backing from AmEx Ventures and GV) and Figure ($675M, with backing from the venture arms of Intel, Microsoft, OpenAI, Nvidia, and Samsung).”

66% Of deals to earlystage companies.

Early-stage companies have “captured 66% of CVC deals in 2024 YTD, pacing at the highest share in over a decade.”

The increase is driven largely by Europe and Asia, which “have seen 73% and 66%, respectively, of CVC deals this year go to earlystage companies.”

165 Deals to fintech companies.

CVC deals to fintech companies increased 41% QoQ to 165. This was the highest level since Q4’22. Blockchain investment firm OKX Ventures was the most active CVC “across sectors, backing 27 total companies.” Coinbase Ventures also “backed 11 companies, signaling a potential rebound in crypto-focused CVC activity.”

$318M CVC-backed funding to China’s startups.

CVC-backed funding in China fell to $0.3B, a 40% QoQ decrease. Deal volume also “fell 14% QoQ to 78, its lowest level since Q1’20.”

Sungrow New Energy, a developer of renewable energy hardware, “raised the largest round for a company based in China at $48M, with backing from CVC Zhongan Capital.”

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