C HAPTER 6: T HE S YNERGY B ETWEEN A NGEL N ETWORKS A ND C ORPORATE V ENTURING
claim, it is worth noting that corporate venture capital as a percentage of total venture capital financing participation has not declined dramatically. U.S. data provided by Ernst & Young’s Corporate Venture Capital Report shows that CVCs continue to participate in 20 per cent of equity investments compared with 27 per cent in 2000. Consequently, it seems premature to discount the CVC as temporary investors. U.S. EQUITY INVESTMENTS WITH CVC PARTICIPATION (FALL 2002)
Percentage of total funds committed of total financings
Source: Ernst & Young Corporate Venture Capital Report, Venture Capital Advisory Group, Fall 2002
Despite these challenges, there can be real value for angels working with innovative CVCs. Within Canada, angel networks can benefit from a unique CVC vehicle that focuses on early-stage developments. CONCLUSION As angel networks look to mitigate risk and diversify their future seed/start-up investments, they can benefit tremendously from closer working relationships with corporate venture capital organizations. Simply put, angel-backed start-ups with CVC support can succeed with better product development, new channels to sales and greater credibility. The key challenge in achieving the benefits of partnering with CVCs is identifying a mutually aligned CVC that participates in seed-stage investing.
49
Powered by FlippingBook