For some time now, corporate venture capital (CVC) has been a significant part of the funding ecosystem. According to Pitchbook, in 2016 alone over $20 billion was invested in 745 US venture deals in which CVC participated. CVC is not a new phenomenon. In a post in April 2016, Pitchbook, noted that since the beginning of 2010, $125.57 billion has been invested in rounds involving CVCs. Over the past few years, much attention has been paid to the large investment amounts coming from CVCs and the growing importance of this segment of investors. (See this article from Inc. magazine from 2014 referring to a “Corporate VC boom” and this 2015 Forbes piece noting that “Corporate venture capital is booming.”)
As CVC investment matures, compensation for CVC personnel is evolving. In his piece “Comparing fund models: VC vs. CVC,” Adley Bowden of PitchBook News presents data from J. Thelander Consulting‘s CVC Salary Increase & Bonus survey. As you will see in the table below, some of the mechanisms CVCs use to incentivize their investing professionals differ from the compensation structure of traditional VCs.