That is what they search for
Amid the enterprise business’s funding slowdown in 2022, nontraditional traders like hedge funds and personal fairness companies ran for the hills. Many assumed that company enterprise capital funds would, too — however they didn’t.
These strategic backers remained constant in 2022 and, in line with PitchBook information, truly elevated their presence in enterprise offers. In 2022, CVCs participated in 26.2% of enterprise offers, up solely a hair over 2021’s 25.6%. Whereas this isn’t a significant change by any means, it does stand out as a result of each different class of crossover investor participated much less in 2022 than in 2021.
Whereas common enterprise agency fundraising isn’t anticipated to be notably strong this yr — and funding total has continued to stoop to this point — there are indicators that company enterprise capital will stay a gradual supply of funds in 2023.
Scott Lenet, the co-founder and president of Landing Ventures, which helps companies arrange their CVCs, informed TechCrunch+ that the agency is getting extra inbound than ever from companies seeking to begin a fund of their very own.
The volatility of the previous couple of years has led to extra funds seeking to deploy capital, which must be welcome information to startups. Plus, getting the backing of an investor who isn’t tied to a selected fund lifecycle in an unsure exit setting positively has its enchantment.