The Changing Landscape of Corporate Venture Capital in 2022 - Technologies News


The Changing Landscape of Corporate Venture Capital in 2022



The year 2021 had been extraordinary with a bull market in almost all assets, including venture capital. Gone are the days when venture capital was limited to the cottage industry. Currently, corporate VC funds raise billions of dollars annually with significant and consistent growth. As the world enters 2022, the corporate VC market is expected to continue breaking records. Hire professional VC services to keep up with the changing landscape of corporate venture capital in 2022.

Digitized B2B Payments

Many corporate VC investors are interested in B2B payments. The consumer payment system has gone through significant digitization over the last few years, but nothing much has happened for B2B payments. In 2022, business intelligence will combine with payments to make B2B payments digitized. The Covid-19 pandemic has accelerated the acceptance of digital platforms in the corporate VC landscape. Possibilities of digitization in venture capital are visible, and experts are making efforts to address the inefficiencies questioned earlier.

Focus on Economic Discipline

Moderation in the liquidity and capital markets will improve focus on startups’ economic discipline. Liquidity was in sellers’ favor in 2021, and investors struggled to find good deals. However, most companies who raised the capital have strong fundamentals, with some exceptions. Easy capital access and resistant capital markets shifted focus away from growth balance and profitability. In 2022, businesses may bring their focus back to their economic discipline. Investors always want to invest in growth-focused companies. Therefore, they will focus more on the underlying economics while disconnecting with valuation.

Imminent Consolidation

The large capital amounts raised during 2021 will fund industry leaders to buy complementary assets. However, they need to justify their valuation. As a result, they must look for faster avenues and alternatives to exhibit a more substantial top-line growth. Industries like online education and content businesses have already seen an intense consolidation scenario. A similar trend is likely to follow in new sub-verticals and verticals.

Technology for Supply Chain

Global supply chains have gone through tough times during the post-pandemic recovery period. This has opened up huge potential for businesses that have adopted technology and digitization. Slower-moving corporates who do not have access to cutting-edge technology may find it challenging to solve these issues. VC services from experts implement new technologies and provide actionable insights based on real-time big data analysis. Startups may have access to high budgets to move the world’s supply chain process again in 2022.

Automation and Artificial Intelligence

The use of technology will reduce reliance on humans since technology has been reliably replacing a wide range of manual activities. Although the world is still several years away from Artificial General Intelligence, businesses and industrial processes can now perform various functions through machines. The labor shortage experienced due to the pandemic has augmented the use of automation and artificial intelligence much more widely than before. Companies are now looking for technological solutions to keep their operations running.

For venture capital firms at any stage, VC services come as a great help for deal sourcing, target evaluation, portfolio monitoring, advisory, and fund-level support. Those looking forward to investing in potentially lucrative startups must hire these services to make data-based decisions.

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