Expect a surge of CVC exits by 2022 — corporates are already exploring options

We’re thrilled to see a new op-Ed in Sifted by our Managing Partner Olav Ostin discussing the surge of CVC exits by 2022.

According to Olav, “Corporate exits — some more public than others — are likely to become a major trend in 2022 and beyond.

Despite the Covid-19 pandemic, 2020 saw a record level of corporate investment in startups. Far from pulling back, corporate VC deals rose 24% from the previous year. But this boom time is unlikely to last. Over the next 18 months, expect to see many corporates withdraw from their non-core investments.

Why? Because people are going to be struggling for cash.

We have witnessed one of the greatest government bailouts in history over the past year. Across Europe (and indeed the world), public funds have been used to support a variety of industries and businesses of all sizes, including large corporates. That meant that any cash flow problems have, in the short-term, been covered.”

Read more: Sifted

Source: Sifted