Research: Corporate VC Programs May Boost Share Price

Scott Lenet & Eric Budin – We are a little obsessed with demonstrating that corporate venture capital creates value, so we constantly look at data to find patterns that show the benefits of a well-run corporate venture capital (“CVC”) program. In that vein, we recently analyzed how the stocks of corporations with VC programs have performed versus the market.

Our experience and instincts tell us that having a CVC group positively impacts a company’s long term performance, and therefore should boost stock price, too. But what do the facts say? We created a data set from Global Corporate Venturing’s 2016 Top 100 most active CVC list (based on investment volume from 2011–2015), and our analysis shows that the median U.S. corporation with an active venture capital unit grew its share price approximately 30% faster than its respective market index, over a period of about a decade…

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