As part of my venture capital learning journey, I recently revisited the concept of Corporate Venture Capital (CVC). I’d heard of it before, glimpses here and there in startup newsletters, investor conversations, and especially from Edge by Dream VC. But something about hearing it discussed again, during a session with Newton Venture Program, nudged me to dig deeper. What started as a curiosity led to a rich exploration of how CVC is shaping startup ecosystems in Europe and Africa, and the opportunities for that growth in the lawtech space in Africa.
Heads up, it's going to be a long class…
What is Corporate Venture Capital?
Corporate venture capital is when established companies invest in startups, typically through dedicated venture arms or funds. Unlike traditional VC, which pools funds from external limited partners aiming for financial returns, CVC is funded by the parent company and is often motivated by strategic goals. That means the corporate isn’t just betting on high-growth startups for profit — it’s seeking insight into emerging markets, new technologies, and potentially lucrative acquisitions. Examples are Orange Ventures, Google Ventures, Thomson Reuters Ventures, and Vinted Ventures
The benefits of this concept can be mutual. For startups, a CVC backer brings more than just capital; it offers credibility, access to industry networks, potential customers, and technical support. For corporates, it’s a way to stay innovative, gain early exposure to disruptive ideas, and even rejuvenate internal culture by engaging with startup agility. But this relationship can be tricky. Corporate timelines, governance, and strategic priorities don’t always align with startup speed, pivots, and scaling plans. And yet, when both sides are clear-eyed about the risks and aligned on the value exchange, the results can be powerful.
Key Differences Between CVC and Traditional VC:
Source of Funds: CVC uses the corporate’s own capital, while traditional VC manages money from external investors.
Investment Horizon: CVC may have a longer-term perspective than traditional VC funds with fixed lifecycles.
Objectives: CVC often balances strategic benefits with financial returns, whereas traditional VC primarily focuses on financial returns.
Expertise: CVC investors typically possess deep industry expertise relevant to the parent company’s field.
Exit Pressure: Traditional VCs have a fiduciary duty to seek profitable exits within a specific timeframe, while CVCs may be more flexible and potentially view the startup as a future acquisition target.
Benefits of Corporate Venture Capital
For Startups:
Funding: Provides crucial capital for growth and development.
Strategic Partnership: Offers access to the corporate’s expertise, network, resources, and market channels.
Enhanced Credibility: Investment from a well-known corporate can boost the startup’s reputation and attract further investment or customers.
Potential Acquisition: Can lay the groundwork for a future acquisition by the corporate investor.
Long-term Support: CVCs may have a longer-term investment horizon compared to traditional VCs.
For Corporates:
Access to Innovation: Provides insights into emerging technologies and market trends.
Competitive Advantage: Helps the corporate stay ahead of disruption and identify new growth opportunities.
Market Intelligence: Offers a window into new markets and customer needs.
Talent Acquisition: Successful investments can lead to acquiring talented teams and innovative mindsets.
Financial Returns: Can generate significant returns on investment.
Synergies: Creates opportunities for collaboration and integration between the startup and the parent company.
Challenges of Corporate Venture Capital:
For Startups:
Misaligned Goals: Corporate strategic objectives might not always align with the startup’s best interests.
Loss of Autonomy: Corporate investors may seek influence over the startup’s direction.
Bureaucracy: Involvement with a large corporation can sometimes lead to slower decision-making processes.
Potential Conflicts of Interest: The corporate might be a competitor or have strategic interests that conflict with other investors or potential partners of the startup.
Terms and Control: CVCs might request specific terms, such as the right of first refusal for acquisition, which could deter other investors.
For Corporates:
High Risk: Startup investments are inherently risky, with a high failure rate.
Need for Autonomy: The CVC unit needs some independence to operate effectively and attract talent.
Patience Required: Returns on investment may take a long time to materialise.
Integration Challenges: Integrating the startup’s technology or business model into the corporation can be complex.
Reputational Risk: Failure of a high-profile investment can negatively impact the corporate’s reputation.
Corporate Venture Capital in Europe
When I first delved into the world of corporate venture capital (CVC) in Europe, I was struck by how it has transformed from a niche activity into a central pillar of the continent’s innovation landscape. Back in 2010, CVCs were involved in just 10% of startup deals; by 2024, that figure had risen to approximately 25%. This shift reflects a broader trend of established companies seeking to stay ahead in rapidly evolving sectors like artificial intelligence, climate technology, and healthtech.
Take Novo Holdings, for example. As the investment arm of the Novo Nordisk Foundation, it has become one of Europe’s most active CVCs, deploying €4.6 billion into life sciences ventures in 2024 alone. Their investments span from small-molecule drug discovery to circular waste technologies, illustrating the diverse interests driving corporate investments today.
However, aligning the objectives and timelines of startups with those of large corporations isn’t always straightforward. The success of CVC investments often hinges on a corporation’s commitment to innovation and its willingness to adapt. Despite these challenges, the momentum behind CVC in Europe shows no signs of slowing. As the ecosystem continues to evolve, the collaboration between startups and corporates is poised to drive significant advancements across various industries.
Current State and Post-2020 Trends in Europe
Over the past decade, Corporate Venture Capital (CVC) has evolved from a niche strategy to a cornerstone of Europe's innovation landscape. Once cautious, European corporates are now embracing CVC to stay ahead in rapidly changing markets.
Despite global economic headwinds, European CVC activity has remained robust. In 2023, corporate venture groups participated in over 2,100 transactions, totalling €26.16 billion. By late 2024, more than 770 corporately backed deals, worth over €12 billion, had been recorded, indicating sustained momentum. While overall venture investment in Europe has cooled since its 2021 peak, corporates have maintained, and even increased, their participation, becoming a larger piece of the funding ecosystem.
New players have entered the scene. BBC Studios (UK) launched a venture arm in 2022, making its first startup investment by 2024. The Financial Times established FT Ventures in 2024. Industrial and energy firms are also active; French nuclear company Orano invested €50 million in a new CVC fund in partnership with Supernova Invest. However, not all ventures have persisted. SAP.iO, the venture arm of German software giant SAP, was shut down in early 2024 after seven years, despite a strong performance. Similarly, Emasa Ventures, a $20 million unit of Chilean car parts company Emasa, closed amid broader restructuring. These shifts reflect the "feast or famine" nature of CVC, with commitment often tied to corporate performance.
Sector-wise, CVC investments are diverse but show particular strength in pharmaceuticals, climatetech, energy, and financial services. Novo Holdings, affiliated with Novo Nordisk, was among the most active corporate venture investors in 2024, with 29 deals. Oil and gas giants are investing in clean energy tech and digitalisation. Banks and insurers are also active; Spain's Banco Sabadell, through Sabadell Venture Capital and BStartup 10, has executed over 100 deals since 2018. These investments indicate a strategic use of CVC to explore innovation in core industries and diversify into high-growth areas like AI and mobility.
Geographically, Europe's startup ecosystem has sometimes lagged behind the US in scaling businesses due to a shortage of late-stage capital. CVC is increasingly seen as a solution to this growth-stage capital deficit. European corporates, with deep balance sheets, are stepping in to fill this gap, especially as US and Asian investors became more risk-averse during 2022–2023. Policy makers and industry leaders are exploring ways to steer corporate funds into European startups to power the continent's tech surge. A PwC report found that European companies with more than 10 startup financing rounds per year saw significant improvements in their market-to-book ratios over the last decade, suggesting that active CVC programs are associated with investor perceptions of company innovativeness.
In summary, Europe's CVC landscape post-2020 is characterised by deeper integration into the venture ecosystem, broader sector and deal stage coverage, and a recognition that corporates are key stakeholders in tech innovation. While challenges remain, the sustained activity and strategic investments indicate that CVC is not just a trend but a fundamental component of Europe's innovation strategy.
CVC and the Growth of Lawtech in Europe
Corporate venture capital has had a noticeable impact on the rise of legal technology in Europe, intertwining Big Law, big business, and tech startups in interesting ways:
Direct Corporate Investment in Legaltech: European corporates are actively investing in legaltech startups to enhance their service offerings and operational efficiency. Thomson Reuters, for instance, launched a $100 million CVC fund in 2021 and followed up with a second $150 million fund this year, focusing on early-stage companies in legal technology, among other sectors. These investments not only provide capital but also offer startups access to extensive industry networks and expertise. Other legal companies, such as publishing and software companies, are also joining the fray. For instance, Clio, a Canadian legal software firm with a presence in Europe, has a corporate venture wing, Clio Ventures, that has beeninvesting in AI-driven legal startups to expand Clio’s ecosystem.
Law Firm Incubators and Ventures: European law firms have established incubators to nurture legaltech startups. Mishcon de Reya's MDR Lab and Allen & Overy's Fuse are prominent examples. These programs offer startups mentorship, funding, and the opportunity to test their solutions in real-world legal environments. Such collaborations accelerate product development and facilitate the integration of innovative technologies into legal practice. The presence of these incubators in London and other European legal hubs has created a mini-ecosystem where startups can refine their tools in real law firm environments, a great advantage when scaling solutions to a wider market.
Record Investment and AI Rush: The past two years (2023–2024) and the first quarter of 2025 have seen record legaltech investment in Europe, much of it backed by corporate or venture capitalists interested in AI. The emergence of advanced AI spurred a wave of investment in legaltech start-ups looking to apply AI to legal work. At the close of 2024, legaltech companies received a record level of funding, as investors rushed into the space to avoid being left behind. This boom has been driven partly by corporate participants: For instance, some European banks and consulting firms have invested in contract automation startups (with a view to ultimately utilising the tools in-house), and insurance firms have invested in insurtech startups that intersect with legal services (such as automation of claims processing). So, Europe now has a pretty decent roster of legaltech scale-ups — those contract lifecycle management platforms, AI document review providers, and regulatory compliance software. Many of them started with law firm pilots or some corporate investments and have become large players globally.
Collaborative Innovation: CVC has also fostered a collaborative approach to legal innovation. Instead of law firms or corporates building all the solutions internally, they are more willing to invest in or partner with startups. A law firm can invest in a promising legaltech venture rather than trying to build a similar tool itself, aligning incentives through equity. Similarly, corporates (for example, a big four accounting firm or legal publisher) can seed a startup building technology they can later integrate or acquire. This has sped up legaltech adoption in Europe’s legal sector, as startups scale faster with corporate funding and access to clients, and end-users gain exposure to more advanced tools sooner.
Examples of Impact: A great example is Libryo, a legal compliance SaaS platform that began its journey in South Africa and later established its headquarters in London. Libryo's mission is to assist businesses in understanding their legal obligations across various jurisdictions. By providing real-time, site-specific regulatory information, it enables companies to navigate complex legal landscapes efficiently. The company's growth was bolstered by a $1 million seed investment from notable backers, including Seedcamp, Nextlaw Labs, and Innogy's UK Innovation Hub, facilitating its expansion into Europe, Africa, North America, and Australia.
In Europe, CVC serves as a catalyst for legaltech advancement, providing startups with the resources and industry connections necessary to innovate and grow. The synergy between Corporate venture arms, law firms, and legaltech startups means that the founders are not on their own; they usually work in partnership with the help and feedback of the individuals using their products (i.e., lawyers, law firms, and corporate legal departments, and this in turn fosters a dynamic ecosystem.
Whew! Let’s go all the way to Africa…
Corporate Venture Capital in Africa
Corporate venture capital (CVC) is still a relatively new player in Africa’s startup ecosystem. While it hasn’t taken root as deeply as in Europe, the potential is unmistakable. As African startups push boundaries, CVC could play a transformative role if done right.
One of the most pressing challenges African startups face is access to capital, particularly at the growth stage. Traditional VC is still finding its feet across the continent, and the funding dip of 2023 exposed just how fragile the ecosystem remains. Many promising ventures struggled to raise follow-on funding, and only a few corporate investors stepped in; a missed opportunity, maybe?
Yet, the capital is there, at least in some countries. In South Africa alone, it’s estimated that over R1.4 trillion sits idle on corporate balance sheets. Redirecting even a fraction of that into venture deals could unlock a new wave of innovation. And it’s not just about money. When startups partner with corporates, they often gain access to hard-to-reach infrastructure and networks. A mobile services startup, for instance, could scale quickly by leveraging a telecom’s distribution channels.
There’s also mentorship to consider. Corporates bring deep, domain-specific expertise, banks guide fintech on regulation, and logistics giants help streamline operations. This kind of guidance can be invaluable in markets often defined by regulatory complexity and fragmented systems.
Then there’s credibility. A corporate backer lends a startup a stamp of legitimacy that opens doors with customers, regulators, and future investors. It signals seriousness and stability, which can smooth the path to partnerships or approvals. At the same time, corporates aren’t just giving — they’re getting. CVC gives them a front-row seat to emerging innovations tailored to local needs, from agri-tech and healthtech to supply chain and fintech. A mining company backing a drone startup improving site safety is not just investing, it’s solving a real operational problem. Done well, CVC can be a win-win: startups grow with support and resources, while corporates stay competitive through locally relevant innovation.
But the reality on the ground is more complicated. Beyond a few pioneers like Naspers in South Africa and Safaricom in Kenya, many African corporates remain on the fence. Even when the will is there, the staying power often isn’t. Many corporate venture arms globally last just four years, and in Africa, leadership changes or strategic shifts can cause initiatives to vanish overnight. Add to that the continent’s economic and political volatility, and it’s easy to see why corporates often retreat to their core business when things get tough. Cross-border investing presents its own hurdles. Africa’s regulatory landscape is fragmented, and unlike the harmonised systems in Europe, corporates investing across African markets face a patchwork of rules. That calls for patience, local knowledge, and a willingness to play the long game ; traits not always aligned with internal pressure for quick wins.
In summary, CVC in Africa holds immense promise, but only if both sides approach it with realism and readiness. Done thoughtfully, CVC could be one of the cornerstones of Africa’s innovation future.
Current State and Post-2020 Trends in Africa
VC Boom and Correction: Africa experienced a venture capital boom from 2020 to 2021, and record investments flowed directly into tech startups. By 2021, African startups had raised beyond $2 billion, and this rebounded to pre-pandemic levels and then some. This growth continued into 2022, with a record of 787 reported VC deals on the continent (more than double the number in 2020, according to some reports). However, 2023 brought about a correction. This was found to be in line with the global VC downturn. The number of deals dropped to 545, a 31% year-on-year decrease. This drop marked the first dip within a decade. A similar magnitude drop occurred in total VC funding in Africa (down ~25% in 2023) and in 2024. Even with quick expansion, the system is not impervious to global financial shifts.
CVC’s Growing (but Modest) Role: Corporate venture capital (CVC) has historically made up a smaller share of Africa’s venture activity, but its presence is growing steadily. In 2022, CVC participation accounted for around 10% of all venture deals on the continent. While that’s still modest compared to mature markets, where CVCS made up roughly 25–30% of deals, and could rise to 35% by 2025, it marks a clear upward trend. This growth is being fuelled not just by global patterns, but by local ambition. More African corporates are beginning to explore venture investing as a strategic opportunity, gradually following the path carved by their international counterparts. Foreign corporates investing in Africa also display similar behaviour, further nudging the upward trend. Interestingly, while global venture investors pulled back significantly in 2023, CVCs held their ground. Corporate venture capital remained active in African tech deals, alongside traditional fund managers and investment firms. In fact, with some international VCS taking a pause, corporate players became even more visible, highlighting their staying power and growing role in the evolving ecosystem.
Regional Hotspots: Where CVC Activity Is Taking Root: CVC in Africa is still finding its footing, but when it does appear, it tends to cluster in the continent’s leading tech hubs: Nigeria, Kenya, South Africa, and Egypt. These four countries consistently draw the lion’s share of venture capital in Africa, where most CVC activity naturally follows. Among them, South Africa stands out for its relatively mature corporate landscape. It’s home to 14 of Africa’s 20 largest companies by revenue, including heavyweights like Naspers and Old Mutual. Several of these giants have stepped into venture investing over the past decade. Naspers, for instance, has long played on the global stage and backed local e-commerce player Takealot. Kenya, too, was an early mover. Its leading telco, Safaricom, launched the Spark Fund in 2014, targeting promising mobile and fintech startups in the region. Egypt followed with Commercial International Bank’s CVC arm, CVentures, established in 2018. Nigeria tells a slightly different story. As Africa’s largest startup market by total funding, one might expect a bustling CVC scene. Yet, despite having some of the continent’s most profitable banks and telecoms, some even ranking among the most profitable globally, domestic corporates have largely stayed on the sidelines. Fintech dominates Nigeria’s startup landscape, but local CVC involvement has been limited.
International Corporate Investors: A significant portion of CVC in Africa actually comes from foreign corporates or their venture arms looking for growth markets. Examples include Google, which through its Africa Investment Fund has made equity investments in African startups, such as SafeBoda; Japanese corporates like Toyota (via its Mirai Creation Fund) investing in mobility startups; French telco Orange’s venture arm that has funded African fintech and energy startups; and Sony, which in 2023 set up a $10 million Africa-focused fund and invested in a South African gaming startup, Carry1st. These moves underscore that global companies see African tech as an opportunity and are using venture investments as a way to enter or understand these markets. Their involvement boosts the ecosystem’s capital pool and often brings global expertise to local founders.
Sector Trends: Fintech remains the star sector for African venture investment, and naturally, it’s also where corporate venture capital is most concentrated. In 2023, financial services and fintech made up about 23% of all VC deal volume across the continent, maintaining their lead as the most funded sector. It’s no surprise: banks, card networks like Visa and Mastercard, and telecom operators (many with mobile money offerings) are all eager to secure a foothold in Africa’s fast-moving financial innovation landscape. Beyond fintech, investment flows have also been strong in information technology (20%) and consumer services (17%), making up the next tier of leading sectors. These industries continue to attract a mix of traditional VC and corporate capital, thanks to their scale and growth potential. But it’s not just the usual suspects drawing attention. Emerging sectors, particularly clean energy and climate tech, are seeing rising interest from corporate players, especially those in the energy and utility industries. Deals like Nigeria’s Starsight Energy merger with a South African solar company, involving global energy firms, signal a growing CVC appetite in this space. As Africa pushes for climate resilience, corporate investors, local utilities and international energy giants are increasingly stepping into the frame.
Challenges: Progress is being made, but hurdles remain. The contraction in venture funding during 2023 laid bare a key vulnerability: Africa’s continued reliance on global capital. When international investors pull back, local capital sources, including corporates, can still not fully fill the gap. For corporates considering CVC, the question of returns looms large. Many want clarity on how and when they might realise value from these investments. Exits remain a sticking point. IPOs are rare across the continent, and most exits come via acquisitions. Yet even here, many African corporates haven’t historically acquired startups at scale, which limits potential outcomes for CVC-backed ventures.
Building confidence in Africa's startup ecosystem is a journey that will take time and tangible success stories. Demonstrating successful returns is crucial, yet change tends to unfold gradually. Corporates often approach with caution, especially amid persistent macroeconomic challenges. Inflation, currency volatility, and rising interest rates have collectively made funding more expensive and harder to secure. Ironically, these tough conditions highlight the essential role of capital, particularly patient capital like that of corporate venture capital (CVC). Such funding helps startups navigate difficult periods and continue building. As more corporates recognise the long-term value of steadfast commitment, their participation could evolve from a contingency plan into a foundational pillar for innovation across Africa.
CVC and the Growth of Lawtech in Africa
Legal technology in Africa is still something of a hidden gem. While other regions boast well-funded startups and active investor scenes, the African legaltech ecosystem is only just beginning to take shape. It's promising, but it's still in the early days.
We’ve identified a growing number of ventures across the continent, but when you zoom in on the numbers, the picture is clear: very few of these startups have secured major funding rounds. In fact, legaltech is so new to the scene that it rarely even appears in African VC reports. That omission says a lot. Instead of splashy venture rounds, most African legaltech startups are running on bootstrapped budgets, small grants, or the support of innovation hubs. We’re seeing a few key focus areas emerge: online legal information platforms, SME-friendly contract management tools, and legal marketplace apps, but big-ticket investments? Still rare. Corporate venture capital (CVC), in particular, hasn’t really entered the group chat.
But here’s where it gets interesting...
Although direct lawtech investments are few and far between, corporates in Africa have shown a real appetite for adjacent sectors like regtech and fintech compliance. Banks and telecoms—especially those running mobile money networks- are investing in or partnering with startups offering digital ID verification and compliance tools, such as KYC software. These solutions straddle the line between fintech and legaltech. While not strictly legaltech, they show a willingness by corporates to invest in legal-adjacent infrastructure. And that could pave the way for deeper engagement.
Meanwhile, some of the most meaningful pushes in African legaltech are coming from within the legal industry itself. Take the Lawyers Hub in Kenya, for example, has its conferences and organises hackathons for legaltech supported by tech and law firm stakeholders, to spark innovation. In South Africa, we’re seeing something similar, law firms offering office space or mentorship to startups in exchange for future collaboration or a small stake. Nigeria’s U-Law is a good example. It’s not a massive investment yet, but it’s a signal. We can call it the earliest glimmer of corporate venture-style activity coming from law firms instead of big tech. If even one of these startups takes off, I wouldn’t be surprised if law firms start pooling capital to invest, just like we’ve seen with Dentons or Mishcon de Reya in Europe. Imagine a future where top African law firms co-sponsor accelerators or seed funds for legaltech. It’s possible.
Some standout startups are also beginning to break through. Juridoc, a Tunisian platform for automating legal documents, raised funding in March 2025 from 216 Capital and Go Big Partners, a major step for Francophone Africa. The money didn’t come from corporates, but it was still a milestone that could spark interest from players in related sectors, like big accounting firms or document management companies. Then there’s Libryo. It’s a powerful reminder that African-born legaltech can attract serious, even corporate-backed, capital—if it solves a global problem.
Beyond the startups, something else is shifting: mindset. African lawyers are beginning to see themselves not just as legal experts but as potential innovators. That shift could change everything. If law firms start to embrace technology not just as users but as backers—perhaps in partnership with corporates, we could see them investing in platforms that streamline justice systems: think court e-filing tools, AI translators for local languages, or digitised case management systems. Telcos and banks could fund platforms for e-signatures or SME contract support. These are the kinds of collaborations that might just bring CVC into the picture.
Looking ahead, the opportunity is massive...
As more businesses and legal systems across Africa go digital, the need for affordable, accessible legal services will grow. That demand could turn lawtech into the next frontier for smart corporate investment. Imagine a telco investing in a contract platform that helps its SME clients, or a banking consortium funding a due diligence tool for cross-border lending. What if a media giant backed a legal information platform to drive traffic and add value to their audience? These are hypotheticals, but the precedent exists. Once the big tech sectors (fintech, healthtech, etc.) mature, corporates often start looking to more niche areas. And legaltech—despite its quiet beginnings—might be next in line.
Conclusion
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This deep dive into CVC across Europe and Africa has been such an eye-opener. It’s made me realise just how much the startup world is reshaping how corporates think about innovation and investment.
For me, this exploration has sharpened my focus. I’ve always believed in the power of lawtech, but now more than ever, I’m convinced that the legal sector is not just ripe for innovation, but also worthy of smart, strategic capital. I am going to be part of the wave that helps lawtech move from the margins into the mainstream, especially in African markets where legal infrastructure, access to justice, and business compliance can all benefit from tech-driven solutions.
What’s clear to me now is that investing in lawtech isn’t just about startups, it’s about backing systems change. It’s about building trust, making legal processes more efficient, and helping the whole ecosystem work better. Whether it’s corporates getting involved, ventures stepping up, or communities building together, I’m more committed than ever to playing my part in making legal innovation a core part of our future.
