PitchBook Analyst Note: A Lack of Pathway From US CVC Investments to an Eventual M&A

From Vision to Action: Europe’s First Pan-European Business Angels Network, Dedicated to Defence Technologies, Goes Operational

The CVC paradox: High investment activity, low acquisition rates by corporate sponsors

Corporate venture capital has been an undisputed force in the US venture ecosystem. Since 2014 it has accounted for more than 46% of total VC deal value and 21% of deal count. Yet despite having deployed massive capital, CVCs haven’t converted many of their portfolio companies into acquisitions.

PitchBook’s latest analyst note examines 25 years of CVC activity, exploring the reasons why M&A may not be the end goal for many of these investors. Senior analyst Kaidi Gao lays out some of the strategic and financial considerations for these investors and how a changing M&A landscape may impact potential CVC-backed acquisitions in 2025 and beyond.

Table of contents

Key takeaways	1
Introduction and methodology	2
Why US CVC investments have not led to many M&As	4
Case studies	9
Outlook	12

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