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THE H1 2016 CORPORATE

VENTURE CAPITAL REPORT

A comprehensive data-driven look at the first half of 2016’s

corporate venture capital activity globally.

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ABOUT CB INSIGHTS

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TABLE OF CONTENTS

#

SECTION

5

Summary

6

Global Data

19

Country Recaps

24

USA

48

Sector Recaps

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SUMMARY OF FINDINGS

H1’16: CORPORATE VCs

PARTICIPATE IN $12.7B ACROSS 633 DEALS: Deals involving corporate VCs fell 6% when compared to the same period in 2015, while dollar funding from those deals increased 3%. In 2016, CVCs participated in a range of $100M+ deals

including those to Lu.com, Magic Leap, Oscar Health Insurance, Slack Technologies, and many others.

CORPORATE VENTURE ACTIVITY RISING IN THE UK AND INDIA: Deals with CVC participation to UK and Indian startups reached all-time highs in Q2’16. California-based Qualcomm Ventures was the most active CVC investor in both countries.

2016 ON TRACK TO SEE RECORD NUMBER OF NEW CVCs: Globally, 53 new CVC units made their first investment in 2016, continuing a steadily upward trend in the number of new CVCs since 2011. Furthermore, 76 CVCs made investments in seed stage companies in H1’16. This puts 2016 on track for a record in new CVCs, as well as CVC investment at the seed stage.

CVC AVERAGE DEAL SIZES ARE LARGER THAN VCs’ AVERAGE DEAL SIZE: Globally, the average CVC deal size has consistently been larger than the average VC deal size over the last 14 quarters. The same is true for US-based deals, with CVC deal sizes above $20M+ the last 5 quarters.

GOOGLE VENTURES SURPASSES INTEL CAPITAL AS THE MOST ACTIVE GLOBAL CVC IN FIRST HALF OF 2016 GV (Google

Ventures) leads all CVCs in the first half of 2016. In terms of geographic focus, 91% of GV’s investments took place in the United States while roughly 9% took place in Europe.

GLOBAL CVCs’ DEAL SHARE BY STAGE

DOMINATED BY EARLIER STAGES: In Q2’16, seed stage companies accounted for 20% and Series A stage

companies accounted for 26% of global deal share from CVCs. Additionally, Series B deals took a significant portion of the pie accounting for 24% of CVC participation.

CVCs INVOLVED IN $8.6B ACROSS 376 US DEALS IN H1’16: Corporate venture capital deal activity into US-based startups fell by 14% when compared to H1’15. Furthermore, on a quarterly basis, dollar funding from these deals fell 35% in Q2’16.

NOTE: REPORT ONLY INCLUDES INVESTMENT BY CVC ARMS. With the exception of pg. 18, this report only covers the funding activity of specific, separately demarcated corporate venture arms. Corporates making strategic investments directly are not included.

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Global Corporate Venture

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CVC DEAL ACTIVITY FALLS TO

9-QUARTER LOW

7

H1’16 corporate VC participation hit $12.7B across 633 deals. CVC-backed deal activity fell 11% in Q2’16 on a quarterly basis, while overall funding from deals with CVC

participation fell 41% from Q1’16.

Quarterly Global CVC Financing Trend

Q1’12 – Q2’16 $1.7 $2.1 $2.3 $2.2 $1.7 $2.7 $2.6 $2.7 $3.8 $5.1 $3.5 $4.5 $4.9 $7.4 $11.3 $5.5 $8.0 $4.7 160 190 191 219 212 227 253 268 283 303 340 334 325 350 377 313 335 298 Investment ($B) Deals

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CORPORATE VENTURE IN EUROPE

ON THE RISE

In Q2’16, European startups took 19% of all deals with CVC participation, a 5-quarter high. North America still accounted for more than 60% of deals involving CVCs.

Quarterly Global CVC Deal Share By Continent

Q2’15 – Q2’16 68% 63% 59% 63% 62% 17% 20% 23% 21% 17% 14% 16% 17% 15% 19% 1% 1% 1% 1% 1% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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EARLY-STAGE CVC DEAL SHARE REMAINS

STEADY IN H1’16

9

Early-stage (seed/angel and Series A) deals accounted for 46% of all deals with CVC participation in Q2’16. Across the 5 quarters, at least one-fifth of deals involving CVCs were at the Series B stage, with the exception of a drop in Q1’16.

Quarterly Global CVC Deal Share By Series

Q2’15 – Q2’16 21% 24% 21% 14% 20% 26% 27% 28% 33% 26% 22% 20% 25% 18% 24% 14% 11% 9% 17% 14% 7% 5% 4% 5% 4% 6% 7% 5% 4% 4% 5% 7% 6% 9% 7% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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INTERNET AND MOBILE CONTINUE TO

DOMINATE CVC DEAL SHARE

In Q2’16, the internet and mobile sectors accounted for 63% of all deals with CVC

participation. Deal share to healthcare startups topped the share of software and computer hardware in each of the past 5 quarters.

Quarterly Global CVC Deal Share By Sector

Q2’15 – Q2’16 50% 41% 48% 45% 48% 19% 16% 16% 15% 15% 11% 17% 12% 16% 13% 7% 7% 5% 6% 7% 2% 3% 3% 4% 1% 11% 15% 16% 14% 17% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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CVCs PARTICIPATE IN A FIFTH OF ALL VC

DEALS IN H1’16

11

Corporate venture firms participated in 20% of the 3113 venture-backed financing rounds in the first half of 2016.

Quarterly

Global Corporate VC vs. Overall VC Financing Activity

Q1’13 – Q2’16 $1.7 $2.7 $2.6 $2.7 $3.8 $5.1 $3.5 $4.5 $4.9 $7.4 $11.3 $5.5 $8.0 $4.7 $8.8 $10.0 $10.8 $12.0 $13.8 $19.7 $16.9 $20.6 $19.4 $28.1 $29.9 $23.0 $21.9 $17.2 212 227 253 268 283 303 340 334 325 350 377 313 335 298 1364 1414 1543 1541 1566 1715 1731 1723 1754 1841 1848 1675 1577 1536 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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CVC DEAL SHARE AT 19%+ FOR 8-STRAIGHT

QUARTERS THROUGH Q2’16

On a quarterly basis, CVC deal share topped out at 19% in Q2’16, which is down from the all-time high in Q1’16 of 21% of deal share, but still consistent with previous quarters.

Quarterly Global Corporate VC Share Of All VC Deals

Q1’13 – Q2’16

84% 84% 84% 83% 82% 82% 80% 81% 81% 81% 80% 81% 79% 81%

16% 16% 16% 17% 18% 18% 20% 19% 19% 19% 20% 19% 21% 19%

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ACTIVE CVCs MORE THAN DOUBLE FROM

Q1’12 TO Q2’16

13

Since Q4’14, there have been at least 160+ corporate VCs completing deals with Q3’15 hitting an all-time high of 191 corporate VCs making an investment.

Quarterly Global Active Corporate VC Investors

Q1’12 – Q2’16 85 98 95 112 104 111 124 125 147 140 157 164 171 166 191 177 188 176 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Unique CVC Investor

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2016 ON TRACK FOR FRESH RECORD IN

NEW CVC ARMS

53 new corporate VC units globally made their first investment in the first half of 2016, including firms like General Mills Ventures and NBC Sports Ventures. The number of new CVCs making first-time investments will surpass 100 at the current run rate.

Number Of New Corporate Venture Capital Groups

2011 – H1’16 37 47 67 77 85 53 2011 2012 2013 2014 2015 H1'16

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CVC ACTIVITY AT THE SEED STAGE ON

TRACK TO SURPASS 2015 HIGHS

15

In H1’16, 76 unique CVC arms completed at least one seed VC round worldwide, already surpassing 2012 full-year totals and on track for a new annual high.

Global Active Corporate VC Investors at the Seed Stage

2012 – H1’16 53 96 122 131 76 2012 2013 2014 2015 H1'16

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CVC DEAL SIZES CONSISTENTLY LARGER

THAN VC

Average deal size with CVC participation has fallen to a 5-quarter low at $19M in

Q2’16. Despite this, CVC deal size has consistently been larger than VC deal sizes over the last 14 quarters.

Global Corporate VC vs. Overall VC Average Deal Size

Q1’13 – Q2’16 $10 $16 $13 $13 $18 $19 $13 $18 $17 $25 $37 $22 $27 $19 $8 $9 $9 $9 $11 $14 $12 $15 $14 $18 $20 $17 $16 $13 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Corporate VC ($M) Overall VC ($M)

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THE MOST ACTIVE CORPORATE VENTURE

CAPITAL GROUPS GLOBALLY

17

GV (Google Ventures) led all CVCs in global activity, investing in more than 30 companies, roughly 17% more than second-place Intel Capital through the first half of 2016.

RANK CVC INVESTOR RECENT* NEW INVESTMENTS IN FIRST HALF 2016

1

2

3

4

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CORPORATIONS (APART FROM CVCs) ARE

INCREASING THEIR DEAL AND FUNDING ACTIVITY

Beyond dedicated venture arms, corporations themselves are also deploying dollars into VC-backed startups. In H1’16, corporates participated in $11.5B in financings across 394 deals. Corporations’ activity has ticked up in the last two quarters, in which they have been involved in 195+ deals.

Global Corporate VC vs. Corporation Financing Activity

Q1’12 – Q2’16 $1.7 $2.1 $2.3 $2.2 $1.7 $2.7 $2.6 $2.7 $3.8 $5.1 $3.5 $4.5 $4.9 $7.4 $11.3 $5.5 $8.0 $4.7 $0.9 $1.4 $1.3 $0.7 $1.2 $1.6 $1.8 $1.6 $2.8 $2.8 $3.9 $5.5 $6.5 $5.9 $10.4 $5.5 $5.3 $6.2 160 190 191 219 212 227 253 268 283 303 340 334 325 350 377 313 335 298 241 277 277 298 308 338 366 364 396 415 492 498 490 540 556 488 530 497 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 CVC Funding ($B) Corp Funding ($B) CVC Deals CVC+Corp Deals

(19)

Where is all this data from?

The CB Insights platform has the details on all the 2016

corporate venture deals included in this report.

Some of our happy customers

Click here to sign up

for free

(20)

Country Recaps:

(21)

UK CVC DEAL ACTIVITY REACHES RECORD

LEVELS IN Q2’16

21

In Q2’16, UK deal activity hit a record high of 21 deals, despite funding participation falling 33% on a quarterly basis.

UK Quarterly Corporate VC Financing History

Q1’12 – Q2’16 $58 $43 $127 $61 $78 $37 $76 $104 $65 $147 $225 $177 $107 $657 $432 $553 $313 $209 7 4 10 8 15 8 6 5 5 12 12 14 7 15 8 14 13 21 Investments ($M) Deals

(22)

CVC DEAL ACTIVITY IN CHINA HITS

8-QUARTER LOW

Corporate VC firms participated in roughly $2B across 29 deals in China in the first half of 2016. In Q2’16, CVCs were involved in 12 deals to China-based startups, the lowest quarterly total since Q2’14.

China Quarterly Corporate VC Financing History

Q1’12 – Q2’16 $10 $98 $38 $30 $14 $95 $75 $106 $139 $161 $386 $245 $324 $1.4B $4.2B $628 $1.7B $282 8 8 2 10 2 8 7 9 11 7 24 19 13 17 27 14 17 12 Investment ($M) Deals

(23)

INDIA CVC DEAL ACTIVITY HITS ALL-TIME

HIGH IN Q2’16

23

Corporate VC firms participated in $205M across 20 deals in the first half of 2016. Both deal and funding participation rose on a quarterly basis in Q2’16 with CVCs involved in $171M across 13 deals.

India Quarterly Corporate VC Financing History

Q1’12 – Q2’16 $56 $35 $9 $20 $65 $9 $13 $287 $89 $111 $96 $36 $66 $298 $34 $34 $171 3 5 3 3 5 2 6 7 8 9 5 3 7 11 5 7 13 Investment ($M) Deals

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MOST ACTIVE CVCs IN UK, CHINA, & INDIA

Qualcomm Ventures was the most active investor in India and the UK. Legend Capital was the most active CVC investor in China while Intel Capital rounded out the second spot for both China and India.

RANK CVC INVESTOR 1 2 2 4 5

Most Active CVCs in the UK

2012-H1’16 RANK CVC INVESTOR 1 2 3 4 5

Most Active CVCs in China

2012-H1’16

Most Active CVCs in India

2012-H1’16 RANK CVC INVESTOR 1 2 3 4 5

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25

US CORPORATE VC

TRENDS H1’16

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US CORPORATE DEAL ACTIVITY FELL

TO 10-QUARTER LOW

Corporate VCs participated in $8.6B across 376 deals to US-based companies in the first half of 2016, a 14% drop in deals when compared to the same period in 2015.

US Quarterly Corporate VC Financing History

Q1’12 – Q2’16 $1.4 $1.6 $2.0 $1.6 $1.5 $1.9 $2.1 $2.0 $3.0 $4.3 $2.2 $3.5 $3.7 $4.9 $5.6 $3.6 $5.2 $3.4 105 128 128 132 140 145 172 158 176 211 202 203 212 225 233 180 202 174 Investment ($B) Deals

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CALIFORNIA DEAL SHARE HITS

5-QUARTER HIGH

27

Across the 5 quarters, California accounts for at least 48% of all US deals with CVC participation. New York is taking an increasing percentage of deals, with its proportion reaching as high as 20% in Q1’16.

US CVC Deal Share By State

Q2’15 – Q2’16 52% 55% 53% 48% 58% 12% 13% 12% 20% 16% 11% 8% 12% 8% 5% 4% 3% 1% 5% 4% 3% 3% 2% 3% 2% 19% 19% 20% 17% 16% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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MID-STAGE DEALS TAKE PLURALITY OF

SHARE IN THE US IN Q2’16

Investment flowed into the mid-stage with Series B and Series C stage deals attracting 46% of CVC investment in Q2’16. More than 1/5 of deals went to Series A stage

companies in Q2’16.

US CVC Deal Share By Series

Q2’15 – Q2’16 18% 21% 16% 10% 16% 23% 26% 29% 30% 21% 23% 22% 27% 18% 32% 17% 14% 11% 21% 14% 9% 5% 7% 7% 7% 7% 9% 8% 5% 4% 3% 3% 2% 7% 6% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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INTERNET CONTINUES TO DOMINATE IN

US IN H1’16

29

Among US deals, the internet sector took the highest concentration of deals from

corporate VCs. Healthcare and mobile took 15% and 14% of deals, respectively, in Q2’16.

US CVC Deal Share By Sector

Q2’15 – Q2’16 47% 42% 48% 42% 47% 13% 20% 14% 18% 15% 16% 17% 14% 14% 14% 8% 6% 4% 7% 7% 2% 3% 3% 1% 5% 13% 12% 16% 17% 12% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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CVCs PARTICIPATE IN OVER A FIFTH OF US

VC DEALS IN H1’16

In the first half of 2016, corporate VCs participated in 22% of the 1600+ US VC deals.

US Corporate VC vs. Overall VC Financing History

Q1’13 – Q2’16 $1.5 $1.9 $2.1 $2.0 $3.0 $4.3 $2.2 $3.5 $3.7 $4.9 $5.6 $3.6 $5.2 $3.4 $6.7 $7.5 $7.7 $8.8 $9.8 $14.2 $11.0 $13.7 $12.7 $17.9 $15.5 $12.4 $12.4 $11.5 140 145 172 158 176 211 202 203 212 225 233 180 202 174 866 889 975 941 958 1106 1088 1032 988 1104 1040 928 866 816 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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CVC US DEAL SHARE AT 19% OR HIGHER

FOR 9- STRAIGHT QUARTERS

31

CVC quarterly deal share in the US topped out at 23% during the peak of Q1’16 and leveled out to 21% in Q2’16.

US CVC Deal Share Of All VC Deals

Q1’13 – Q2’16

84% 84% 82% 83% 82% 81% 81% 80% 79% 80% 78% 81% 77% 79%

16% 16% 18% 17% 18% 19% 19% 20% 21% 20% 22% 19%

23% 21%

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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NUMBER OF ACTIVE CVCs IN US FALL

STEEPLY AFTER PEAK IN Q1’16

The number of active corporate VCs hit a 8-quarter low in Q2’16, with just 107 unique CVCs completing a US-based deal.

US Quarterly Active CVC Investors

Q1’12 – Q2’16 61 67 67 75 73 82 85 86 104 100 111 108 115 126 132 118 131 107 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Unique CVC Investors

(33)

CVC DEAL SIZES LARGER THAN OVERALL

VC DEALS IN US

33

The average size of deals with CVC participation was larger than overall US VC deals,

mirroring the global pattern. The last 5 quarters saw US CVC deal sizes above $20M+ while each quarter in 2013 was below $20M in average deal size.

US CVC vs. Overall VC Average Deal Size

Q1’13 – Q2’16 $12 $16 $14 $14 $21 $22 $13 $21 $19 $24 $28 $22 $28 $22 $9 $9 $9 $10 $11 $14 $11 $15 $14 $18 $17 $15 $16 $15 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Corporate VC ($M) Overall VC ($M)

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THE MOST ACTIVE CVCs IN THE US

Google Ventures was the most CVC investor in the US through the first half of 2016. They are invested across a range of industries like healthcare and frontier tech; their portfolio includes Orbital Insight, Magic Leap, and ARMO Biosciences, among many others.

RANK CVC INVESTOR RANK CVC INVESTOR

1 5

2 5

3 8

4 9

(35)

Where is all this data from?

The CB Insights platform has the details on all the 2016

corporate venture deals included in this report.

Some of our happy customers

Click here to sign up

for free

(36)

US Corporate VC State

Recaps: CALIFORNIA

(37)

CALIFORNIA: $4.5B ACROSS 197 DEALS

DEALS IN H1’16

37

In Q2’16, total funding involving CVCs in California rose to $2.4B across 101 deals, a 17% increase in funding and 5% increase in deals on a quarterly basis.

California Quarterly CVC Financing History

Q1’12 – Q2’16 $0.7 $1.0 $1.0 $0.8 $0.9 $0.9 $1.3 $1.0 $2.0 $2.9 $1.6 $1.7 $1.8 $3.1 $3.6 $2.1 $2.1 $2.4 49 69 60 65 75 67 90 74 99 110 113 106 95 116 127 95 96 101 Investment ($B) Deals

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CORPORATE VENTURE ARMS ACTIVE IN

CALIFORNIA MID-STAGE MARKET

Series B deals only made up 17% of all California CVC participation in Q1’16, but grew to 34% in Q2’16. In contrast, Series A deals went from a 30% peak in Q1’16 to a 5-quarter low of 18% in Q2’16.

California CVC Deal Share By Series

Q2’15 – Q2’16 19% 20% 15% 11% 12% 20% 24% 26% 30% 18% 24% 20% 24% 17% 34% 19% 17% 14% 22% 16% 6% 5% 7% 9% 10% 9% 11% 11% 4% 3% 3% 3% 3% 6% 8% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(39)

CALIFORNIA CVC DEAL ACTIVITY CONCENTRATED

ON INTERNET; MOBILE & SOFTWARE INCREASING

39

In the first half of 2016, the internet sector received 44% of all California deals with CVC participation. Healthcare peaked in Q1’16 at 21% but dropped to 10% in Q2’16, while both mobile and software increased over the same quarters.

California CVC Deal Share By Sector

Q2’15 – Q2’16 47% 49% 49% 42% 46% 17% 19% 14% 14% 17% 10% 11% 12% 21% 10% 7% 6% 4% 6% 8% 3% 5% 4% 5% 2% 16% 10% 17% 13% 18% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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US Corporate VC State

Recaps: NEW YORK

(41)

NEW YORK: $1.7B ACROSS 68 DEALS

IN H1’16

41

In Q2’16, funding to New York-based companies involving CVCs fell by 66% while deal count fell by 30% on a quarterly basis. In Q2’16, CVCs participated in deals like the Via

Transportation $70M Series C and the US HealthVest $50M Series B, among others.

New York Quarterly CVC Financing History

Q1’12 – Q2’16 $52 $79 $141 $155 $185 $266 $114 $301 $206 $336 $202 $229 $294 $465 $768 $176 $1.3B $438 7 11 7 14 17 12 19 24 15 19 25 31 17 27 30 22 40 28 Investment ($M) Deals

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EARLY-STAGE DEALS INVOLVING CVCs SEE

A REBOUND IN NEW YORK

In Q1’16, Series B deals accounted for 28% of NY-based deals with CVC participation, and this share increased to 32% in Q2’16. Early-stage (seed/angel and Series A) CVC deals fell to a 4-quarter low of 36% in Q1’16, but recovered to 47% in Q2’16.

New York CVC Deal Share By Series

Q2’15 – Q2’16 19% 33% 36% 8% 29% 37% 20% 27% 28% 18% 19% 27% 9% 28% 32% 7% 13% 9% 23% 7% 15% 3% 9% 10% 4% 3% 5% 5% 7% 4% 5% 4% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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MOBILE & SOFTWARE EACH TAKE 1/5 OF

NEW YORK CVC DEALS

43

The internet sector accounted for 57% of deals involving CVCs in Q2’16. Mobile as well as software deals have been in decline since Q4’15 but each still took 20%+ of deals in Q2’16.

New York CVC Deal Share By Sector

Q2’15 – Q2’16 78% 47% 59% 40% 57% 11% 30% 32% 28% 21% 3% 13% 11% 11% 30% 32% 28% 21% 5% 7% 10% 13% 4% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

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US Corporate VC

State Recaps:

(45)

MASSACHUSETTS: $512M ACROSS

24 DEALS IN H1’16

45

In H1’16, deal activity from CVCs fell by 52% when compared to the same period in 2015. In Q2’16, deal count from CVCs investing in Massachusetts-based companies fell to a

staggering 17-quarter low.

Massachusetts Quarterly CVC Financing History

Q1’12 – Q2’16 $177 $133 $231 $210 $132 $229 $274 $272 $153 $297 $87 $457 $533 $470 $596 $360 $390 $122 6 17 16 16 16 19 20 18 18 24 11 23 26 24 19 22 16 8 Investment ($M) Deals

(46)

MASSACHUSETTS CVC ACTION LEANING

TOWARDS SERIES A AND SERIES B DEALS

Over the last 5 quarters, Series A and Series B deals have accounted for at least 43% of CVC deals in Massachusetts. Seed/angel stage activity is taking an increasing share of CVC deals growing from 4% in Q3’15 to 11% in Q2’16.

Massachusetts CVC Deal Share By Series

Q2’15 – Q2’16 8% 4% 7% 12% 11% 15% 29% 31% 35% 32% 28% 33% 31% 27% 21% 25% 8% 10% 12% 11% 5% 21% 3% 4% 11% 13% 4% 10% 5% 8% 7% 12% 11% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(47)

HEALTHCARE TAKES 1/3 OF MASSACHUSETTS

CVC INVESTMENTS IN H1’16

47

In Massachusetts, healthcare has consistently taken the largest portion of CVC deals peaking in Q3’15 at 63%. In Q2’16, CVCs were involved in healthcare deals like Morphic Therapeutic (Series A, $51.5M), Imara (Series A, $31M), and Daktari Diagnostics (Series D II, $7M).

Massachusetts CVC Deal Share By Sector

Q2’15 – Q2’16 15% 11% 23% 38% 25% 12% 5% 9% 13% 42% 63% 36% 31% 38% 4% 11% 5% 13% 8% 5% 5% 19% 5% 23% 19% 25% Q1'15 Q3'15 Q4'15 Q1'16 Q2'16

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49

Global Corporate VC

(50)

INTERNET DEAL ACTIVITY REACHES

5-QUARTER LOW

Corporate VC involvement in the internet sector dropped to involvement in $5.7B of

funding across 294 deals in the first half of 2016. Notable internet deals with CVC participation include the $200M Series F of Slack, the $70M Series E of SoundCloud and the $50M Series C of Paymax.

Global Quarterly CVC Financing History: Internet

Q1’14 – Q2’16 $2.0 $1.6 $1.6 $1.6 $1.9 $3.9 $4.1 $2.5 $3.9 $1.8 113 128 167 136 126 176 156 151 152 142 Investment ($M) Deals

(51)

EUROPE GAINS GREATER SHARE OF CVC

INTERNET DEALS IN Q2’16

51

Corporate VC deals in the internet sector have remained relatively consistent across the top 3 continents with North America capturing the majority of all investments. Europe accounted for 20% of deals in Q2’16 after taking 16% or less in the previous four quarters.

Global CVC Deal Share By Continent: Internet

Q2’15 – Q2’16 63% 64% 60% 59% 61% 23% 21% 25% 23% 18% 14% 14% 13% 16% 20% 1% 1% 1% 2% 1% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(52)

CVC EARLY-STAGE INTERNET DEALS

HIT 5-QUARTER LOW

For deals in the internet sector involving CVCs, early-stage deals (seed/angel and Series A) fell to 46% of the total in Q2’16, a 5-quarter low. Meanwhile, internet deals involving CVCs at the Series B stage hit a 5-quarter high at 27% in Q2’16.

Global CVC Deal Share By Series: Internet

Q2’15 – Q2’16 22% 28% 26% 17% 21% 30% 28% 27% 31% 25% 20% 19% 25% 18% 27% 13% 12% 9% 17% 12% 7% 5% 5% 5% 3% 4% 6% 5% 4% 5% 4% 3% 4% 8% 7% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(53)

Where is all this data from?

The CB Insights platform has the details on all the 2016

corporate venture deals included in this report.

Some of our happy customers

Click here to sign up

for free

(54)

Global Corporate VC

(55)

MOBILE SECTOR DEAL ACTIVITY

TRENDING DOWNWARDS

55

Deal count in the mobile sector fell to a 14-quarter low with CVCs investing in 45 deals in Q2’16. Funding to mobile from deals with CVC participation dropped in the first half of 2016, after the Q3’15 spike which was driven by CVC involvement in $1B+ rounds to Didi Kuaidi and Ucar Group.

Global Quarterly CVC Financing History: Mobile & Telecom

Q1’13 – Q2’16 $310 $334 $589 $387 $697 $1.7B $386 $636 $685 $1.2B $4B $922 $680 $699 48 46 57 63 61 57 72 71 68 66 62 49 49 45 Investment ($M) Deals

(56)

ASIA CATCHING ALMOST ¼ OF CORPORATE

VC DEALS IN MOBILE

Mobile deals in North America involving corporate VCs took at least 53% of mobile CVC deals across the 5 quarters. Asia took at least 1/5 of deals in the 5 quarter-trend and ended Q2’16 on a high note taking roughly 1/4 of all mobile deals.

Global CVC Deal Share By Continent: Mobile & Telecom

Q2’15 – Q2’16 59% 65% 53% 61% 60% 21% 21% 31% 22% 24% 17% 15% 16% 16% 16% 3% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(57)

CVC EARLY-STAGE MOBILE DEAL SHARE

DOMINATES OVER 5 QUARTERS

57

Early-stage deals consistently accounted for roughly 60% of CVC deals in the mobile sector. In Q2’16, mid-stage (Series B + Series C) deals took 30% of CVC participation with deals like Cabify (Series C, $120M) and Meta (Series B, $50M) drawing CVC involvement.

Global CVC Deal Share By Series: Mobile & Telecom

Q2’15 – Q2’16 32% 39% 35% 34% 37% 27% 33% 35% 35% 29% 24% 13% 21% 23% 15% 6% 5% 6% 4% 15% 1% 2% 2% 2% 2% 3% 5% 1% 6% 3% 2% 2% 2% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(58)

Global Corporate

VC Sector Recap:

(59)

HEALTHCARE DEAL ACTIVITY SLIGHTLY

DOWN IN H1’16

59

Corporate VC involvement in the healthcare sector totaled 91 deals adding up to $2.6B in H1’16, a 2% decrease in deal activity over the same period in 2015.

Global Quarterly CVC Financing History: Healthcare

Q1’13 – Q2’16 $423 $682 $565 $696 $437 $956 $565 $896 $1.1B $1.3B $1.9B $1.1B $1.4B $1.2B 33 43 29 38 43 51 31 45 56 37 65 37 53 38 Investment ($M) Deals

(60)

30% OF HEALTHCARE DEALS HAPPENING IN

EUROPE AND ASIA

Healthcare deals primarily took place in North America with the continent notching at least 68% of all deals in the last 5 quarters. CVCs have increased their deal activity in Asia-based healthcare startups over the past 5 quarters going from 5% in Q2’15 to 18% in Q2’16.

Global CVC Deal Share By Continent: Healthcare

Q2’15 – Q2’16 84% 72% 68% 68% 68% 5% 5% 11% 15% 18% 11% 23% 22% 15% 13% 2% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(61)

CVCs ARE BETTING ON HEALTHCARE

DEALS AT THE EARLY-STAGE

61

In Q2’16, early-stage deals accounted for 37% of CVC deals in the healthcare sector, up from 29% in Q2’15. Series C healthcare deals are trending downwards going from 17% in Q3’15 to 11% in Q2’16.

Global CVC Deal Share By Series: Healthcare

Q2’15 – Q2’16 5% 6% 3% 5% 24% 29% 27% 43% 32% 32% 31% 30% 30% 34% 16% 17% 14% 13% 11% 11% 6% 5% 8% 8% 8% 8% 5% 3% 3% 14% 6% 3% Q2'15 Q3'15 Q4'15 Q1'16 Q2'16

(62)

APPENDIX:

100 Most Active Corporate Venture

Capital Firms Of The First Half Of 2016 (Global)

1-25 26-50 51-75 76-100

Google Ventures In-Q-Tel Robert Bosch Venture Capital Kaiser Permanente Ventures Intel Capital Tengelmann Ventures Corigin Ventures UMC Capital

Comcast Ventures Orange Digital Ventures Merck Global Health Innovation Fund Leta Capital Salesforce Ventures Lilly Asia Ventures BlueCross BlueShield Venture Partners Aster Capital Cisco Investments American Express Ventures Nissay Capital Baxalta Ventures GE Ventures Nokia Growth Partners YJ Capital XL Innovate

Qualcomm Ventures Hewlett-Packard Ventures Bertelsmann India Investments Monsanto Growth Ventures Pfizer Venture Investments Legend Capital Unilever Ventures Ascension Ventures

Bloomberg Beta WuXi Venture Fund SAIC Capital Astellas Venture Management CyberAgent Ventures AbbVie Biotech Ventures Chevron Technology Ventures Broadway Video Ventures F-Prime Capital Bertelsmann Digital Media Investments Morgan Stanley Expansion Capital Yamaha Motor Ventures Samsung Ventures SingTel Innov8 Autodesk Forge Fund Health Insight Capital Ping An Ventures Saison Ventures Recruit Strategic Partners LDV Capital

Johnson & Johnson Innovation 301 INC DG Incubation Simon Venture Group Roche Venture Fund Caixa Capital Total Energy Ventures International DvH Ventures

Verizon Ventures Wipro Ventures Gibraltar Ventures Twitter Ventures

SR One Capital One Growth Ventures WPP Digital Liberty Global Ventures Citi Ventures Google Capital Globalive Capital Xiaomi Ventures

Brand Capital Springboard Santander InnoVentures Motorola Solutions Venture Capital MassMutual Ventures Rakuten Ventures Hearst Ventures Aviva Ventures Amgen Ventures NTT DoCoMo Ventures SMBC Venture Capital Reaktor Ventures Maxim Ventures Microsoft Ventures American Family Ventures IBM Watson Group Shea Ventures Novartis Venture Funds WME Ventures Renren Lianhe Holdings McKesson Ventures Telstra Ventures Boehringer Ingelheim Venture Fund Innovacom SPH Media Fund AXA Strategic Ventures Time Warner Investments CAA Ventures MediaTek Ventures

(63)

Where is all this data from?

The CB Insights platform has the details on all the 2016

corporate venture deals included in this report.

Some of our happy customers

Click here to sign up

for free

(64)

FOR ALL DATA INQUIRIES EMAIL

CB INSIGHTS AT INFO@CBINSIGHTS.COM

www.cbinsights.com @cbinsights

References

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