Good morning. Companies are investing more in corporate venture building. Many are competing with startups to launch their next corporate unicorn, a term that typically describes a privately held startup company with a valuation of $1 billion.
EY-Parthenon's survey of 1,000 U.S. C-suite executives takes a look at corporate venture building, which is a business that is created by a large corporation resulting in a new source of revenue. About 22% of respondents dedicated at least one-fifth of their operating budget to venture building in 2023 and plan a similar level of investment this year. This represents a five-fold increase in the number of companies that dedicated at least 20% of their budget to venture building in 2022, according to the report.
