Corporate Venturing: Networked Across Industries More Than Ever (CVC Series, Part 2)

Venture and Target Industry Dynamics

Further analysis of data from the recent BCG report on Corporate Venture Capital shows that the investment focus is widening considerably. The report analyzed hundreds of transactions and classified their involvement as venturing (initiating) and/or target industries. Certain industries such as clean technology, consumer, services, and healthcare tend to be net target industries (positive net target index) as indicated in the graph below.

Conversely, the industrial and telecom sectors on the left side of the graph are interesting because they tend to be ‘net venturers’ outside their industry (negative net target index).

The size the bubble corresponds to the number of deals. Self-targeting industries like healthcare and information technology in particular may be slightly over-represented because they get counted for both the venturing and target side of the deal.