Donnelley Financial Solutions and Pitchbook have collaborated to bring you a monthly highlight of a key sector or important trend in venture today. This month’s update covers the following: Corporate Venture - a Growing Trend in NYC Most active CVCs since 2006 Select VC Deals: October 2016

1. 1
PITCHBOOK & DONNELLEY FINANCIAL SOLUTIONS
NOVEMBER 2016 UPDATE
Venue Venture Capital Update
CORPORATE VENTURE A GROWING TREND IN VC
Concurrent with the growth seen
in the overall VC market during
recent years, corporate venture activ-
ity has also expanded noticeably as
corporations look to utilize minority
investments in startups as a pivotal
learning and growth strategy. The
number of active CVCs has increased
from just 367 in 2006 to approximately
700 during 2015. Through October,
corporate venture groups have partic-
ipated in 886 venture rounds in 2016
that have totaled over $27.5 billion in
VC invested, a figure on pace to break
the record level of capital invested in
2015. Further, it’s important to note
that the corporate venture model
has gained increased popularity from
many companies outside of giant tech
firms. While stallworth’s such as Intel
capital, which has deployed roughly
$12 billion over its entire CVC history,
have grown to serve companies as
both a financial partner and a strategic
advisor, companies such as 7-Eleven
and Sesame Street have launched VC
funds employing a more traditional
approach, with the former looking to
gain exposure to new products and
business models that enable its own
strategic initiatives, and the latter look-
ing to back companies sharing a similar
mission.
While startups have been able to raise
seed rounds at a faster clip than what
we’ve experienced historically, there
are also many examples of companies
running into issues raising subsequent
funding rounds due to challenges hit-
ting certain performance and growth
metrics. CVCs can provide resources
such as distribution channels, manu-
facturing and cost synergies, as well as
strategic expertise to help companies
mitigate potential roadblocks to future
Intel Capital 571 41
GV 478 49
SoftBank Capital 201 11
Comcast Ventures 195 35
Qualcomm Ventures 179 12
Salesforce Ventures 160 21
GE Ventures 134 28
Novartis Venture Fund 132 8
Investor
Completed deals
since 2006
Completed
deals in 2016*
$6.37
$7.69
$12.01
$11.10
$13.51
$23.05
$32.65
$27.52
465
550
699
799
1,035
1,229
1,267
886
0
200
400
600
800
1,000
1,200
1,400
$0.00M
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2009 2010 2011 2012 2013 2014 2015 2016
Deal Value ($B)
Deal Count$6.37
$7.69
$12.01
$11.10
$13.51
$23.05
$32.65
$27.52
465
550
699
799
1,035
1,229
1,267
886
0
200
400
600
800
1,000
1,200
1,400
$0.00M
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
2009 2010 2011 2012 2013 2014 2015 2016*
Deal Value ($B)
Deal Count
Corporate VC in US deal activty by year
Most active CVCs since 2006
Source: PitchBook
*As of 10/31/2016
Source: PitchBook
*As of 10/31/2016

2. 2
PITCHBOOK & DONNELLEY FINANCIAL SOLUTIONS
NOVEMBER 2016 UPDATE
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funding. This strategic difference in
how many CVCs are structured can
serve as a significant incentive for
many startups looking to raise private
capital. In addition, since corporate VC
is typically deployed alongside tradi-
tional VC in investment rounds, the
presence of a strategic-type investor
can give startups credibility and help
ease some of the concerns a traditional
VC may have before putting capital to
work.
Historically tending to source deals in
the later stages, CVCs have begun cap-
turing emerging technologies earlier by
offering financing at all stages in the
development cycle. Corporations such
as Google and Microsoft have even
added incubator and accelerator arms
in an effort to establish a relationship
with startups early on, allowing them
to offer ample advice to help compa-
nies grow within their respective eco-
system, while also helping these CVCs
penetrate early-stage deal networks.
That said, corporate venture groups
aren’t immune from the spikes we’ve
seen in funding rounds across all stag-
es. The median deal size for venture
rounds with CVC participation current-
ly sits at $12 million, the highest figure
we’ve seen over the last decade.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013 2014 2015 2016*
Materials &
Resources
Information
Technology
Healthcare
Financial Services
Energy
B2C
B2B
Yearly CVC activity by sector
SELECT VC DEALS (OCTOBER 2016)
Company Series
Deal
Date
Size
($M) Select Investor(s) HQ
Payoneer E 10/3 $180
TCV, Wellington Man-
agement
New York
Postmates E 10/31 $141 Founders Fund San Francisco
Ofo C 10/13 $130
Didi Chuxing, Coatue
Mangement
Beijing, China
Zymergen B 10/17 $130
SoftBank Group, True
Ventures, DFJ
Emeryville, CA
Unity
Biotechnology
B 10/27 $116
ARCH Venture Partners,
Mayo Clinic Ventures
San Francisco
Source: PitchBook
Source: PitchBook
*As of 10/31/2016