Corporate Venture Capital (CVC) now participate in one in four startup deals in Europe

Back in 2010, corporates were not the primary investors in European startups, contributing only 10% of the funding. Fast forward to 2024, and corporates now account for over a quarter of startup funding, a significant increase in interest, according to data platform Dealroom.

This year, Corporate Venture Capital (CVC) has been involved in one out of every four European startup deals, Dealroom reports.

A new report from advisory firm Mountside Ventures and VC firm Love Ventures, published today and exclusively shared with Sifted, suggests that this trend is likely to continue. The report reveals that 89% of corporate investors plan to increase or at least maintain their level of startup investments over the next three years compared to the previous three years.

B2B companies are the top choice for corporate investments, followed by AI, machine learning, and fintech sectors. In contrast, B2C and healthtech startups are less favored. Additionally, 93% of respondents indicated they had a very specific sector focus.

Geographically, fewer investors have strict mandates; 57% focus on specific countries or regions.

Moreover, 96% of corporates surveyed said they primarily invest directly in startups, while only 9% do so through secondary investments.