The virtual state of corporate venture capital today – ProWellTech
When the game it becomes difficult, it is normal for some company VCs to head towards the hills.
Today, it is a narrative that is emerging again in the midst of the COVID-19 crisis. According to Global Global Venturing, global venture capital operations went from a total of 580 in April / May 2019 to 486 in the same period this year.
However, VC’s institutional operations are also in decline, with PitchBook forecasting a decline in transaction volume in the coming quarters, as well as a drop in valuations.
It remains to be seen how it will turn out this time, but I believe that corporate risk capital (CVC) will not only remain in play, but will also be a vital part of the innovation ecosystem in the future.
I know that the Merck Global Health Innovation Fund (MGHIF) remains fully committed to “doing” business. Today more than ever, health innovation is vital. Secondly, we understand that many of today’s most successful companies have been funded in times of uncertainty. In fact, to put our money in our mouth, we recently completed two divestitures, three successive investments and two new deals in 2020, all since COVID hit. We intend to increase this pace going forward in 2020 and beyond.
It has not been easy It is difficult to venture when you cannot venture into the world, meet the founders and do diligence as we have done in the past. But it is possible, if you make innovations on your own and create a fully functional system to do CVC virtually.
Here’s how we did it.