Corporate Venture Capital (CVC) – The Strategic Perspective; and FAMGA as Venture Capitalists (VC) – The Financial Perspective
Looking at FAMGA’s ventures, it becomes even more evident that these companies are making many bets, likely both out of a strategic motivation as well as a pure financial motivation. FAMGA and all their investment vessels have taken a share in close to 2.300 ventures since 1995.
There have been 140 venture investments/participations in unicorns by FAMGA (startups with a valuation above $1bn), some resulting in acquisitions. Interestingly, quite often, more than one FAMGA is involved in the same venture. VC insiders claim that companies making minority investments in other companies makes no sense, and these types of investments are equal to future call options or outsourced R&D.
Among FAMGA’s unicorn bets are companies like Uber, Lyft, Airbnb, SpaceX, Waymo, Slack, WhatsApp, Lending Club, 23andME, SolarCity, Glassdoor, Waze and Turo. Some have already been converted to acquisitions. But it is fair to say that FAMGA is making a lot of bets and buying a lot of tickets—and many of them will be a large part of our lives, while producing valuable data for the companies.