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

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.