That is what they search for

Amid the enterprise business’s funding slowdown in 2022, nontraditional buyers like hedge funds and personal fairness corporations ran for the hills. Many assumed that company enterprise capital funds would, too — however they didn’t.

These strategic backers remained constant in 2022 and, in line with PitchBook knowledge, really elevated their presence in enterprise offers. In 2022, CVCs participated in 26.2% of enterprise offers, up solely a hair over 2021’s 25.6%. Whereas this isn’t a significant change by any means, it does stand out as a result of each different class of crossover investor participated much less in 2022 than in 2021.

Whereas common enterprise agency fundraising isn’t anticipated to be notably sturdy this 12 months — and funding total has continued to hunch thus far — there are indicators that company enterprise capital will stay a gentle supply of funds in 2023.

Scott Lenet, the co-founder and president of Landing Ventures, which helps companies arrange their CVCs, informed TechCrunch+ that the agency is getting extra inbound than ever from companies trying to begin a fund of their very own.

The volatility of the previous few years has led to extra funds trying to deploy capital, which must be welcome information to startups. Plus, getting the backing of an investor who isn’t tied to a selected fund lifecycle in an unsure exit setting undoubtedly has its enchantment.