Corporate investment in U.S. start-ups rises 16 percent in second quarter: report
The corporate-backed funds invested in some 118 companies in the United States, according to a report released on Thursday by consultancy CB Insights, with internet companies winning almost one-third of the cash.
Healthcare and the automotive/transportation sectors each took 20 percent.
Most deals involved co-investors from traditional venture capital firms such as First Round Capital, Index Ventures, and Sequoia Capital.
Big companies like to invest in start-UPS (UPS.NY)to keep an eye on potential new technologies and players in their fields. Financial gains are typically are less important than the strategic insights the bigger companies gain.
(Reporting By Sarah McBride; Editing by Daniel Magnowski)