71.4% of the companies have the objective of implementing a program through the hiring of specialized consultancies.
A survey carried out by the Brazilian Association of Private Equity and Venture Capital (ABVCAP) which also had the support of EloGroup, Fundação Dom Cabral (FDC), Wayra Brasil, Vivo Ventures, Global Corporate Venturing (GCV) and ApexBrasil, reveals a significant increase interest on the part of companies to invest in Corporate Venture Capital (CVC).
The study had the participation of 41 companies. Of these, 82.9% have CVC initiatives. In 58.5%, the program is carried out by CVC units with their own corporate structure (funds, SPEs or offshores) and in 19.5%, directly from the company’s balance sheet. Among the companies that still do not have a CVC (17.1%), 71.4% intend to implement a program by hiring specialized consultants and 57.1% intend to use talent from the company itself.
“The growth in the CVC market was not affected even in a year in which the Venture Capital market went through adjustments, with a decrease in the pace of investments, an increase in the startup evaluation cycle and readjustment of the amounts invested”, said Marcio Barea, manager of ABVCAP studies and research.
In 2022, 13 companies listed on the stock exchange launched their initiatives to finance companies in the initial stages, compared to 8 in 2021. In total, there was R$ 3.04 billion of capital committed to these programs last year. Among the companies that responded to the survey, 80% had net revenue above R$1 billion; 22% are from industry, 17.1% from the energy sector, 12.2% from the health sector and another 12.2% from services Information technology companies make up 9.8% of the sample.
“The survey shows a maturation of the startups and venture capital ecosystem with a search by investor companies for professionalization of CVC initiatives. This trend follows the best global practices to enable companies’ innovation and new business objectives with financial return”, comments Sandro Valeri, coordinator of ABVCAP’s CVC Committee.
Point of attention to Corporate Venture Capital practices
One of the two points of attention of the study, refers to the need to observe the structured process of large companies for innovation and CVC practices. “Besides two strategic objectives for innovation, the structure of a process of support, selection, investment and absorption of knowledge between companies and startups is essential. There is no great patience with investments and losing resources at this time would not be in the pattern. This is, balancing short-term agendas and long-term expectations is not the focus”, points out Hugo Tadeu, Director of the Núcleo de Inovação e Empreendedorismo da FDC.
“The research reflects the current moment of the ecosystem, which is increasingly perceived to be more and more important to CVCs, not just as a source of financial investments, but for access to smartmoney and potential business partners. Large companies benefit from new technologies and still help startups in their escalation movements”, concludes Gabriela Toribio, Managing Director of Wayra Brasil and Vivo.