Mexico City — 2022 was record year for corporate VC-led deals in the U.S., and the trend could continue into 2023, especially after the banking crisis that triggered the collapse of Sillicon Valley Bank (SVB), known as the startup bank because of its risk tolerance.

An analysis by PitchBook, a financial data firm, notes that there were 634 rounds led by corporate venture capital for some $22.4 billion in 2022, significantly higher than the previous record of $17.6 billion in 596 deals in 2021.

Corporate VC is the venture capital that comes from large companies. It is seen as an investment alternative to venture capital where investors can add their experience and knowledge to the startups. Meanwhile, entrepeneurs find a consultancy and management to consolidate their business.

"Considering that there were more deals led by corporate venture capital in 2022 than in the period between 2002 and 2009, it is clear that these investors are becoming incresingly active in their pursit of venture opportunities", said Vincent Harrison, VC analyst at PitchBook in a report.

In the U.S., more than 2,070 Corporate Venture Capital (CVCs) invested in U.S.-based startups in 2022, nearly four times the number seen just a decade ago, says PitchBook.

"These all-time record figures illustrate not only a growing number of active CVC investors within the venture ecosystem, but also a growing willingness and desire on the part of startups to take on CVC capital", Harrison added.

In Mexico, some companies like Femsa (FEMSAUBD), Cemex (CEMEXCPO, CX) and Coppel have invested in startups in different industries and could become a stronger investment vehicle in Latin America in the face of the bannking crisis, according to PitchBook's analysis.

Femsa Ventures was the sixth largest startup investor in Mexico in 2022, according to Transactional Track Record (TTR) data, just behind Tiger Global Management, Clocktower Technology Ventures, Dila Capital, Wollef and Y Combinator.

Source: Bloomberg Línea