Corporate Venture Capital Many Multinationals Have Venture Capital Arms Investing in Innovations in Their Sector
Corporate Venture Capital: Corporate Venture Capital (CVC) involves large firms taking an equity stake in a small but innovative or specialist venture including startups and early stage companies, to which it may also provide management, technical, marketing, or other expertise in the parent company; the objective is to gain a specific competitive advantage. So they are not entirely disinterested partners, but then neither are VC firms themselves. In contrast to individual venture capitalists, who are predominently focused on financial returns, most CVCs seek strategic benefits in addition to financial returns.
The heaviest concentration of corporate venture capital operations are in the field of new technology in many sectors. If you are starting a venture without significant growth opportunities or in an established technology, this is probably not the place to look for funding. Many of the CVCs partner with other VCs when they invest.
You can choose one that fits your market sector and see if it has criteria that you can meet, and that its demands are not going to compromise unduly your own purpose. Obviously the Corporate Venture Capital operation is going to seek synergy between its own intentions/assets and yours.
This directory shows the Corporate Venture Capital name, with a link to its website and the sectors in which they are interested. You will need to look much more closely at any that are of interest, to see what compatibility your venture may have with their aspirations. By the time you make contact, you will need to have thought very carefully about any potential clash of interests. The giant’s purpose may be very different to yours and you will want to avoid ‘cannibalism’!
The information is updated, but is not a full coverage of all the corporate venture capital funds that exist, and the focus is on US funds. We would be very grateful to hear of ones that are not yet listed, or corrections to the entries below.
- AXA Strategic Ventures: invests in technologies that shape the future of insurance and asset-management: enterprise software, fintech, consumer, digital health.
- Bloomberg Beta: invests in powerful ideas that bring transparency to markets, achieve global scale, with strong, open cultures that embrace technology.
- Cisco Investments: invests in disruptive businesses that align with Cisco’s IT and networking business, while being committed to ideas that will shape the future of the broader networking ecosystem.
- Comcast Ventures: focuses its investments in advertising, consumer, enterprise and infrastructure. They look for innovative ideas that can scale big, a defensible technology, and a solid team.
- Dell Technologies Capital: “At Dell Technologies Capital, we have a fundamental understanding of what promising young companies need to change the world. We provide the resources, scale and expertise to help them continue innovating and maximize their potential,” says Michael Dell.
- Dow Venture Capital: invests in businesses and technologies that help address challenging problems including clean water, renewable energy, and increasing agricultural productivity.
- Eighteen94 Capital: was formed by Kellogg’s to back food-industry consumer products. If your product is in-market or ready to launch, they have the capital and resources to take it to the next level.
- GE Ventures: gives access to the global network of expertise and resources of General Electric. They partner and invest in the ideas within software, healthcare, energy and advanced manufacturing.
- GV: is the VC arm of Alphabet (Google’s parent) investing in the fields of life science, healthcare, artificial intelligence, robotics, transportation, cyber security, and agriculture. It was the most active CVC in 2017.
- IBM Venture Capital Group: does not do equity or seed funding, engages with established VC firms to find new, complementary, and relevant technologies for the industries and customers served by IBM.
- Infosys Innovation Fund: invests in machine intelligence, big data & analytics, infrastructure & cloud, collaboration & design, convergence of sectors, disintermediation, new business models.
- Intel Capital: has invested more than US$11.8 billion in over 1,473 companies in 57 countries, since 1991. They invest in developers and providers of hardware, software, and services.
- Johnson & Johnson Innovation: backs ideas in pharmaceuticals, consumer and medical devices sectors, focusing on therapeutic areas having the greatest potential to improve the lives of patients and consumers.
- M12: is the new name for Microsoft Ventures; it invests in AI & machine learning, big data & analytics, business SAAS, cloud infrastructure, emerging technologies, productivity & communications, security. M12 ran a $2m competition for female founders (applications closed in September 2018).
- Merck Ventures: back entrepreneurs with equity investments and hands on support in fields that could impact the vitality and sustainability of Merck’s medicines, vaccines, and animal health products.
- Next 47: the venture business of Siemens looks for big ideas, great technologies and innovation that can disrupt industries and create new markets in electrification, automation and digitalization.
- Nokia Growth Partners: invests in connected enterprise, consumer solutions, connected car, digital health and enabling technologies—in mobile, networks, data or Internet of Things.
- Novartis Venture Fund: looks for unmet need and clinical impact, novel proprietary science and understanding of mechanism, management and board experience and capital efficiency in the program.
- Pfizer Venture Investments: backs therapeutics, platform technologies, diagnostics, drug delivery, pharma services, healthcare IT + technologies impacting drug discovery and development.
- Qualcomm Ventures: interested in anything wireless, but especially virtual reality, the internet of things, robotics, cloud, and wireless health.
- Roche Venture Fund: invests to develop commercially successful innovative life science companies that generate financial return to Roche a global pharma company in medicines and in vitro diagnostics.
- Salesforce Ventures: Salesforce’s strategic venture arm focused on creating the world’s largest ecosystem of enterprise cloud companies.
- Samsung Venture Investment: looks for startups in investment areas include semiconductors, telecommunication, software, Internet, bio engineering & medical industry, film/video industry.
- Slack Fund: early stage investments in a team with a record of success/strong potential; products that improve where & how people work—built for Slack customers or to support developers using the Slack API; with a committed lead investor.
- SR One: the venture arm of GlaxoSmithKline and invests globally in emerging life science companies that are pursuing innovative science which will significantly impact medical care.
- Unilever Ventures: invests in young, promising companies, accelerating growth by providing access to Unilever’s global ecosystem, assets and expertise—in personal care and digital.
- Verizon Ventures: seeks to partner with startups in connected devices & hardware, media & entertainment, commerce & advertising, infrastructure & networking, data & analytics.
PLEASE NOTE: If you make contact with any of these organizations, it would be very kind if you would tell them that you came to know about them through venturefounders.com. Thank you.