Why Are Corporate Venture Deals Declining Amid AI Hype

Corporate venture capital activity shows a decline despite notable investments in the AI sector. As of mid-2024, U.S.-based corporate venture arms participated in 1,385 deals, aligning with last year's figures but down from 2022. Large investments, such as Alphabet's $5 billion in Waymo and Disney's $1.5 billion in Epic Games, contrast with reduced overall deal flow. Early-stage investments dropped, with only 489 Series A and B deals compared to over 700 last year, and later-stage funding showed a decline to 190 completed deals from 270. Despite these trends, some corporate investors, like Google Ventures, remain active, participating in 46 rounds this year. The landscape indicates a slowdown in corporate venture capital engagement across the board.

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