Two Chinese firms ranked in the top five corporate venture capital groups last year, in terms of number of companies in which they invested, according to a new report from CB Insights.
Corporate venture capital refers to a type of funding where corporations use investment arms to buy into start-ups. For example, Microsoft invests into enterprise software start-ups through M12, its corporate venture capital subsidiary.
CB Insights’ “2018 Global CVC Report” said such firms participated in $52.95 billion worth of funding across 2,740 deals last year. To be clear, those numbers do not include strategic investments that companies made directly into start-ups.
Chinese internet giant Baidu’s investment unit, Baidu Ventures, and Legend Capital, a subsidiary of Chinese conglomerate Legend Holdings, ranked in the top five behind Google Ventures, Salesforce Ventures and Intel Capital.