Amid the enterprise business’s funding slowdown in 2022, nontraditional buyers 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 keeping with PitchBook knowledge, truly elevated their presence in enterprise offers. In 2022, CVCs participated in 26.2% of enterprise offers, up only a hair over 2021’s 25.6%. While 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.
While common enterprise agency fundraising isn’t anticipated to be notably strong this year — and funding total has continued to droop thus far — there are indicators that company enterprise capital will stay a gradual source of funds in 2023.
Scott Lenet, the co-founder and president of Touchdown Ventures, which helps firms arrange their CVCs, told TechCrunch+ that the agency is getting more inbound than ever from firms seeking to begin a fund of their own.
The volatility of the last few years has led to more funds seeking to deploy capital, which ought to be welcome information to startups. Plus, getting the backing of an investor who isn’t tied to a particular fund lifecycle in an unsure exit atmosphere positively has its enchantment.
CVCs remained constant buyers in 2022 by Rebecca Szkutak initially printed on TechCrunch