Welcome to The State of CVC report 2022. For our second annual report on the state of CVC, we asked the community frank questions about the pace of investment, the comparison to traditional venture capital (VC) and the impact of a potential recession on deals and areas in which they invest. The results convey cautious optimism. On the one hand, lower valuations can unlock opportunities, and some funds will double down. On the other hand, others will dial back, becoming more stringent on due diligence. However, in the aggregate, we see that CVCs behave proportionally to VCs in their approach to the innovation ecosystem.

SVB and Counterpart Ventures have teamed up again, bringing together the voices of 164 CVC leaders across 15 countries and nine industries. We are confident that this represents the most contemporary study of CVCs in the market. We continue to provide industry benchmarks and deepen our understanding of topics, such as how funds approach LP positions, board seats, compensation and headcount. Questions on both formal and informal commitments to DEI hold up a mirror to CVC funds. While the industry has a long way to go, there are promising signs that funds are making representation a priority in respect of the founders they invest in and the investors they hire.

Throughout the report, we showcase the candid responses of CVC leaders and share their perspectives in their own words. A common thread uniting the tapestry of funds is how they partner with their portfolio companies and corporate parents to provide value beyond capital and returns. Even funds that are financially-focused report a nonfinancial metric as their primary motivation. In tumultuous times, CVCs are uniquely positioned to bolster their portfolio companies and the core business of their corporate parents. Once again, our report establishes that CVCs are a valuable partner at all times. We believe the findings of the report attest to cautious optimism for the future of corporates in the innovation ecosystem.