The Corporate Capital Correlation — One Year Later

Selina Troesch – Well-run corporate venture capital (“CVC”) units can deliver many benefits to their parent companies. A year ago, we hypothesized that CVC efforts could positively impact corporate stock price, because of the long term benefits of venture capital investing. Our analysis showed that the stock price of the median U.S. corporation on the “Global Corporate Venturing 2016 top 100 most active CVC list” appreciated 30% more than the price of its listing index since the establishment of its venture capital program through the end of 2016. To monitor this result, we refreshed the data as of the end of 2017. We found that the stock price of the median U.S. corporation studied appreciated 42% more than the price of its listing index from the time of CVC unit establishment through the end of 2017.

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