Corporate venture capital (CVC) transformed the startup landscape in 2024, driving innovation across AI, healthcare, fintech, and renewable energy. Despite market uncertainties, CVC-backed startups in the U.S. and Canada experienced a 14% funding boost in Q1. Here’s what stood out:
- Alphabet (Google Ventures): $2.5B invested in 120 deals, focusing on AI (40%) and healthcare.
- Microsoft's M12: $275M across 50 deals, emphasizing early-stage AI, cybersecurity, and enterprise software.
- Intel Capital: $500M in 30 deals, targeting AI, semiconductors, and quantum computing.
- Salesforce Ventures: $250M fund for enterprise software, with 40% of investments outside the U.S.
- Eli Lilly Ventures: Precision medicine and AI-driven drug discovery as primary focus areas.
- Novartis Venture Fund: $300M across 25 deals, including gene therapy and AI drug discovery.
- JJDC (Johnson & Johnson): Investments in precision medicine, digital health, and medical devices.
- BP Ventures & Shell Ventures: Accelerating clean energy and carbon reduction technologies.
- Total Carbon Neutrality Ventures: Focused on renewable energy, battery systems, and fusion energy.
Quick Comparison Table
| Investor | 2024 Focus Areas | Total Investment | Notable Deals/Outcomes |
|---|---|---|---|
| Alphabet (GV) | AI, healthcare, climate tech | $2.5B (120 deals) | $300M in Anthropic (AI safety) |
| Microsoft M12 | AI, enterprise software, security | $275M (50 deals) | $20M in AI-powered gaming |
| Intel Capital | AI, semiconductors, quantum tech | $500M (30 deals) | $100M in SambaNova (AI platforms) |
| Salesforce Ventures | Enterprise software, AI, no-code | $250M fund | $100M in AI customer service platform |
| Eli Lilly Ventures | Precision medicine, AI drug discovery | $45M Series B | Neuron23 for neurodegenerative R&D |
| Novartis Venture Fund | Gene therapy, AI, rare diseases | $300M (25 deals) | $50M Series B in gene therapy |
| JJDC | Precision medicine, digital health | $75M Series C | Encoded Therapeutics (gene therapy) |
| BP Ventures | Clean energy, carbon capture | $125M+ | $50M in hydrogen fuel cells |
| Shell Ventures | Renewable energy, battery tech | $125M+ | $75M in advanced battery technology |
| Total Carbon Neutrality Ventures | Fusion energy, smart grids | $75M Series C | Battery and fusion energy startups |
CVCs are not just funding startups - they’re offering strategic partnerships, technical expertise, and global networks, helping startups scale faster and tackle global challenges. Dive into the article to explore how these investors shaped 2024's innovation landscape.
How Corporate VC Investment Strategy Differs from Institutional VCs
1. Alphabet (Google Ventures)
Google Ventures (GV) had a strong performance in 2024, investing $2.5 billion across 120 deals - up 15% from 2023. The firm focused more on larger, established startups, with nearly half of its investments going to AI and machine learning. Other key areas included healthcare and climate tech.
In 2024, 40% of GV’s investments were directed toward AI and machine learning. This included backing companies like Anthropic and Cohere. Highlights included Anthropic's $300 million round for AI safety research and Recursion Pharmaceuticals' efforts in AI-driven drug discovery. GV also maintained its presence in enterprise software and sustainability-focused sectors.
"GV's approach combines the best of venture capital with the best of Google – merging capital with the technical expertise and operational excellence of Google." - David Krane, CEO and Managing Partner of GV, Annual Letter 2024
Focus on AI and Ethics
GV took a thoughtful approach in 2024, emphasizing AI safety and ethics. Two key initiatives stood out:
- A $50 million fund dedicated to underrepresented founders
- Blind review processes for evaluating initial pitches
This strategy balanced advancing cutting-edge AI with addressing broader challenges like sustainability. GV’s shift toward funding larger, later-stage startups aligned with a cautious trend across corporate venture capital, while staying committed to groundbreaking technologies and supporting diverse entrepreneurs.
2. Microsoft's M12
In 2024, M12 invested $275 million across 50 deals, marking a 25% increase from the previous year. This approach enabled M12 to assist startups in their early growth phases, providing both funding and strategic support. It reflects the growing trend of corporate venture capitalists taking calculated risks on earlier-stage investments.
Industry Focus and Key Investments
M12 concentrated its 2024 investments in three major areas:
| Focus Area | Notable Investments |
|---|---|
| Artificial Intelligence | $20M in AI-powered voice gaming |
| Enterprise Software | $15M in engineering intelligence platforms |
| Cybersecurity | $20M Series A in Sym's security workflow platform |
One standout achievement was CloudOptix's IPO, which reached a $1.2 billion valuation. These investments highlight M12's focus on emerging technologies and its ability to identify promising opportunities.
Boosting the Startup Ecosystem
M12 leveraged Microsoft's technology, particularly in AI and cloud computing, to strengthen its portfolio companies. This support not only enhanced the startups' capabilities but also attracted additional investors, further energizing the startup ecosystem.
"At M12, we're not just writing checks. We're leveraging Microsoft's vast resources and relationships to help our portfolio companies accelerate their growth and success." - Nagraj Kashyap, Corporate Vice President and Global Head of M12
3. Intel Capital
In 2024, Intel Capital committed over $500 million across 30 deals, targeting cutting-edge technologies like AI, semiconductors, and quantum computing. With an average deal size of $20 million - 15% higher than in 2023 - Intel Capital showed a clear focus on supporting mature startups working on advanced tech.
Here’s a look at two standout investments:
| Company | Investment Round | Amount | Focus Area |
|---|---|---|---|
| Mythic | Series B | $50M | AI Chip Development |
| SambaNova Systems | Series D | $100M | Computing Platforms |
Where They're Investing
Intel Capital allocated 40% of its funding to AI and machine learning startups, while 25% went to semiconductor and hardware companies. They also prioritized quantum computing and advanced computing solutions, leveraging Intel's expertise to gain an edge in these fields.
"Our investment strategy in 2024 is focused on identifying and nurturing startups that are pushing the boundaries of technology, particularly in areas like AI, quantum computing, and next-generation semiconductors. We're not just providing capital; we're offering our expertise and vast network to help these companies succeed." - Anthony Lin, President of Intel Capital
More Than Just Funding
Intel Capital didn’t stop at writing checks. They provided technical guidance, business development opportunities, and access to Intel’s global network. For example, their $45 million investment in Quantum Machines helped accelerate quantum computing advancements while enabling collaboration with Intel's research teams.
This hands-on approach was particularly impactful in the semiconductor space, connecting startups with established players in the industry. Intel Capital’s strategy highlights the growing influence of corporate venture capital in driving progress in AI and computing, shaping the future of technology in meaningful ways.
4. Salesforce Ventures
Investment Activity in 2024
Salesforce Ventures introduced a $250 million fund aimed at enterprise software, increasing Series C and D investments by 30%. Impressively, 40% of their new portfolio companies were based outside the U.S. The firm participated in over 50 funding rounds, with a strong focus on Series B and C investments. Among their standout moves were a $100 million stake in an AI-powered customer service platform and a $75 million investment in a cloud-based data analytics startup.
Impact on Startup Ecosystem
Salesforce Ventures provided its portfolio companies with a robust support system that included:
| Support Type | Benefits Provided |
|---|---|
| Technical Integration | Access to Salesforce APIs, expert technical guidance, and product discounts |
| Market Access | Connections to Salesforce's global network of customers |
| Strategic Growth | Opportunities for co-marketing and exposure at events like Dreamforce |
Additionally, their $50 million diversity fund led to a 40% increase in investments in startups with diverse founding teams, setting a new standard for inclusive funding practices.
Industry Focus and Strategic Direction
In 2024, Salesforce Ventures concentrated its investments on technologies driving the next wave of enterprise innovation:
| Focus Area | Investment Allocation |
|---|---|
| AI/ML Applications | Solutions tailored for enterprise use |
| No-code Platforms | Tools empowering business users to develop without coding expertise |
| Sustainability Tech | Technologies aimed at reducing environmental impact |
"Our focus is on creating the world's largest ecosystem of enterprise cloud companies and empowering them to connect with their customers in entirely new ways." - John Somorjai, EVP of Corporate Development and Salesforce Ventures [3]
This focused strategy not only strengthened Salesforce's overall ecosystem but also accelerated the growth of its portfolio companies. By targeting AI, sustainability, and no-code platforms, Salesforce Ventures is staying ahead of trends shaping the future of enterprise software. Their approach has solidified their position as a leader in the space, inspiring other corporate venture capital firms to follow suit.
5. Eli Lilly Ventures
Eli Lilly Ventures stood out in 2024 as one of the busiest pharmaceutical corporate VC investors, making waves with a $45 million Series B funding round for Neuron23. This investment aimed to push forward AI-enabled drug discovery for neurodegenerative diseases. Their approach for 2024 zeroed in on three main areas:
| Investment Category | Focus Areas |
|---|---|
| Therapeutic Development | Oncology, Immunology |
| Platform Technologies | AI-driven Drug Discovery, Gene Editing |
| Digital Health Solutions | Precision Medicine, Patient Monitoring |
The firm concentrated on precision medicine and AI-driven drug development, specifically targeting early to mid-stage companies across North America and Europe. This aligns with the broader movement of technology reshaping healthcare investments in 2024.
Eli Lilly Ventures offered strong support to its portfolio companies, including:
- Access to Eli Lilly's research facilities and expertise
- Connections with top healthcare institutions and experts
- Advice on regulatory compliance and trial design
- Help with market access and product commercialization
In 2024, Eli Lilly Ventures joined forces with other leading healthcare VCs, amplifying their influence in biotech innovation. Their focus on clinical development and regulatory expertise set them apart from other corporate VCs. Additionally, their investments in AI-driven platforms reflected their alignment with cutting-edge industry trends.
This strategic focus on healthcare innovation mirrors a larger shift among pharmaceutical CVCs, as seen with firms like Novartis Venture Fund.
6. Novartis Venture Fund
In 2024, Novartis Venture Fund (NVF) invested $300 million across 25 deals, including a $50M Series B in gene therapy and a $30M Series A in AI-driven drug discovery. A significant 60% of these investments went into Series A and B rounds, targeting early-stage companies working on cutting-edge therapies.
| Investment Category | Amount | Notable Outcomes |
|---|---|---|
| Gene Therapy | $50M Series B | Advanced to clinical trials |
| AI Drug Discovery | $30M Series A | Platform development |
| Quantum Computing | $25M | Drug design innovation |
| Immunotherapy | $40M | Solid tumor research |
Impact on Startup Ecosystem
NVF directed 60% of its capital to North America, 30% to Europe, and 10% to Asia, fueling key milestones such as a $1.2B gene therapy IPO and an $800M digital health acquisition. To promote diversity, the fund introduced a $50M allocation for underrepresented founders, using blind initial screenings to minimize bias.
"Our investment strategy at Novartis Venture Fund is to back innovative companies that have the potential to transform patient care. We're particularly excited about the convergence of biology and technology, which is opening up new frontiers in drug discovery and development." - Michal Silverberg, Managing Partner at Novartis Venture Fund
Expanding Industry Boundaries
NVF ventured beyond standard AI applications, exploring quantum computing for molecular simulations, organ-on-chip platforms, and biomarker development. Their therapeutic focus included oncology, neuroscience, and rare diseases.
Portfolio companies gained access to Novartis' R&D resources, state-of-the-art facilities, and extensive industry networks. One standout example was a $100M Series C round for an immuno-oncology company, showcasing NVF's ability to drive growth through strategic partnerships.
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7. Johnson & Johnson Innovation - JJDC
In 2024, JJDC made notable investments, including a $75 million Series C funding round for Encoded Therapeutics. This funding supported their work on precision gene therapies for SCN1A+ Dravet Syndrome, aligning with the growing trend of leveraging technology to reshape healthcare.
| Investment Focus | Key Outcomes |
|---|---|
| Precision Medicine | Progress in clinical trials |
| Digital Health | Platform advancements |
| Medical Devices | Expanded market reach |
| Consumer Health | Product commercialization |
Industry Focus and Investment Strategy
JJDC concentrated on advancing healthcare technologies within pharmaceuticals, medical devices, and consumer health. The firm typically invested between $5 million and $50 million per funding round, targeting projects with high potential to make an impact.
"Our mission at JJDC is to accelerate innovation and bring transformational healthcare solutions to patients worldwide. We're not just providing capital; we're offering strategic support, industry expertise, and access to Johnson & Johnson's global network." - William Hait, Global Head, Johnson & Johnson External Innovation
Supporting Startups and Driving Growth
Through its global reach and collaboration with JLABS incubators, JJDC offered startups more than just funding. Companies benefited from operational guidance, international market access, and faster regulatory pathways. This approach allowed portfolio companies to scale efficiently and achieve critical milestones.
JJDC's focus areas included:
- Precision Medicine: Advancing genomics and targeted therapies
- Consumer Health Technologies: Developing digital platforms and medical devices
- Novel Drug Delivery: Exploring new therapeutic delivery systems
Portfolio companies gained access to Johnson & Johnson's robust R&D resources and global commercial network, helping them achieve regulatory approvals and penetrate markets more effectively. JJDC's efforts reflect a broader shift among corporate venture capital firms toward integrating healthcare advancements with sustainability and cutting-edge technology, echoing similar moves by companies like BP Ventures and Shell Ventures.
8. BP Ventures
In 2024, BP Ventures ramped up its investments in clean energy, targeting technologies that drive the shift toward sustainable energy. The firm directed funding toward green hydrogen production, carbon capture solutions, and AI-driven energy management tools.
| Investment Area | Technology Focus |
|---|---|
| Clean Energy | Green hydrogen production |
| Carbon Reduction | Carbon capture technologies |
| Energy Management | AI-powered industrial solutions |
Impact and Strategy
BP Ventures teamed up with leading venture capital firms to support the growth of its clean energy startups. By integrating these startups into BP's operations, the firm created opportunities for testing and scaling innovative energy solutions.
"BP Ventures plays a key role in identifying, investing in, and partnering with innovative companies that can help us reimagine energy for people and our planet." - David Gilmour, Vice President of BP Ventures
Focus Areas and Innovation
In 2024, the firm concentrated on advanced mobility, clean energy, and carbon reduction technologies, with a strong focus on solutions that offer measurable CO2 reduction. BP Ventures leaned into early-stage funding, particularly seed and Series A rounds, while also exploring opportunities in emerging innovation hubs.
These investments highlight the growing role of corporate venture capital in speeding up the energy transition. BP Ventures' approach aligns with a broader movement among energy-focused corporate VCs, such as Shell Ventures, to prioritize sustainability-driven initiatives.
9. Shell Ventures
Shell Ventures has positioned itself as a key player in advancing clean energy and carbon reduction technologies, reflecting the increasing focus on sustainable investments in 2024.
Investment Activity in 2024
In 2024, Shell Ventures led several major funding rounds in clean energy and sustainability-focused technologies, committing over $125 million. Some highlights include a $50 million Series B investment in a hydrogen fuel cell startup and $75 million directed toward advanced battery technology [1][2].
| Investment Focus | Amount | Stage |
|---|---|---|
| Hydrogen Fuel Cell | $50M | Series B |
| Battery Technology | $75M | Growth |
| Grid Storage Solutions | Undisclosed | Series A |
| Smart Grid Systems | Undisclosed | Seed |
Key Technology Areas
In 2024, Shell Ventures concentrated on three main areas:
- Renewable energy and storage advancements
- Carbon reduction and capture technologies
- Innovations in advanced materials and circular economies [4]
The firm strategically balanced investments between early and growth-stage opportunities, with particular attention to seed and Series A rounds to tap into emerging technologies [5].
Broader Impact on Startups
Beyond funding, Shell Ventures actively supported startups through initiatives like deploying AI-powered predictive maintenance software across Shell's wind farms. This not only boosted operational efficiency but also demonstrated the startup's market potential [7].
"Shell Ventures plays a crucial role in identifying and scaling innovative solutions that can help accelerate the energy transition." - Geert van de Wouw, Vice President of Shell Ventures
One of the firm's standout achievements in 2024 was a grid-scale energy storage IPO valued at over $2 billion. This exit underscored Shell Ventures' ability to nurture promising clean energy startups while attracting top-tier opportunities in the energy storage space [6].
Shell Ventures' investments highlight the increasing influence of corporate venture capital in reshaping industries and tackling global energy challenges. Its efforts complement those of other energy-focused investors, such as BP Ventures, in driving the energy transition forward.
10. Total Carbon Neutrality Ventures
Total Carbon Neutrality Ventures (TCNV) has established itself as a major force in advancing the shift to cleaner energy, following the lead of BP Ventures and Shell Ventures. Through targeted investments, TCNV is helping to drive meaningful progress in the energy sector.
Investment Strategy and Focus
In 2024, TCNV ramped up its efforts, focusing on three main areas that align with TotalEnergies' goal of achieving net-zero emissions:
- Renewable energy, including advanced solar technologies
- Energy storage and cutting-edge battery systems
- Emerging clean energy solutions, such as fusion energy
Among its notable moves were a $75 million Series C investment in fusion energy and a $50 million funding round to advance battery technology. These actions highlight TCNV's dedication to supporting groundbreaking energy innovations.
Strategic Impact and Vision
TCNV stands out by combining financial returns with measurable carbon reduction goals. Its portfolio spans Europe, North America, and Asia, with investments typically ranging from €1 million to €15 million per deal.
"Our investment strategy is aligned with TotalEnergies' ambition to get to net-zero emissions by 2050. We're looking for the most promising startups that can help accelerate the energy transition." - Girish Nadkarni, CEO of Total Carbon Neutrality Ventures
Beyond Funding: Supporting Clean Energy Startups
TCNV doesn't just provide capital; it offers startups access to TotalEnergies' global network and technical expertise. This support helps young companies overcome challenges, scale their technologies, and bring their solutions to market faster.
In 2024, TCNV expanded its reach into smart grid technologies and AI-driven energy management systems, complementing its primary focus on renewable energy and storage. By combining strategic investments with hands-on support, TCNV continues to play a key role in advancing cleaner energy solutions worldwide.
Trends in Corporate Venture Capital for 2024
The corporate venture capital (CVC) world is seeing major shifts in 2024, with new trends shaping how investments are made and where the focus lies. These changes reflect a response to evolving market needs and advancements in technology.
Investment Strategy Evolution
Corporate VCs are leaning into larger, more strategic investments this year. Average deal sizes have grown by 14% compared to 2023, especially in high-growth areas like AI, digital health, and sustainability. This shift shows a preference for long-term growth over quick returns, with CVCs applying stricter evaluation methods to identify the most promising opportunities [1].
New Investment Focus Areas
CVCs are putting their money into some of the most advanced sectors, including quantum computing, space tech, synthetic biology, edge computing, and climate tech. These areas reflect a strong push toward innovation and align with market demand for transformative technologies [4].
Cross-Industry Partnerships
Collaboration between corporate VCs and traditional venture capital firms is on the rise. This is especially noticeable in sectors like manufacturing and biotech, where deep industry knowledge is essential. By combining this expertise with the startup scaling experience of traditional VCs, these partnerships are creating stronger support networks for emerging companies.
Shifting Geographic Priorities
Geographic focus has also evolved. US-based CVCs are increasingly backing domestic startups, while Asian CVCs, particularly those in China, are targeting Southeast Asia. Key sectors for these investments include fintech and renewable energy, reflecting regional strengths and opportunities [7].
ESG Takes Center Stage
Environmental, Social, and Governance (ESG) factors are now a core part of CVC strategies. Investments in areas like climate tech and social impact startups demonstrate this shift. By integrating ESG criteria, corporate investors are not only driving innovation but also addressing pressing societal and environmental challenges [7].
Firms such as Shell Ventures and BP Ventures are doubling down on climate tech and carbon reduction, while Salesforce Ventures highlights the growing importance of aligning investments with long-term strategic goals. These changes show how CVCs are moving toward more purposeful and impactful investment approaches across the board.
Conclusion
Corporate venture capital (CVC) has become a powerful force in 2024, reshaping how investments drive progress across industries. Startups backed by CVCs have shown a 30% higher success rate in launching products compared to those without corporate support.
More than just providing funding, corporate investors act as strategic partners, offering industry knowledge and resources to help startups grow faster. This influence is especially clear in areas like enterprise software, where global corporate networks have helped startups quickly gain market traction.
Startups with CVC backing are 25% more likely to achieve unicorn status than those funded by traditional venture capital. This success is tied to the strategic advantages and expertise CVCs offer. Additionally, 2024 saw a 45% rise in funding directed toward diverse founders, highlighting a shift toward more inclusive investment practices.
Looking ahead, CVCs are branching into areas like deep tech, cross-industry collaborations, and ESG-focused projects. These shifts are not only helping individual startups thrive but are also driving broader changes in industries and contributing to economic growth.
"The CVC model has evolved from being primarily a financial tool to becoming a key driver of industry transformation. CVCs are increasingly taking lead roles in funding rounds and actively shaping the direction of entire sectors."
As CVCs continue to adapt, their impact on industries and their ability to tackle global challenges will likely grow, paving the way for a more dynamic and impactful investment landscape.
FAQs
What is the trend in CVC in 2024?
Corporate Venture Capital (CVC) activity in 2024 took a more cautious turn, focusing on selective investment strategies. CVC investors were involved in just 23.3% of total VC deals in Q2 2024 - the lowest level since 2014. This reflects a more reserved stance due to market uncertainties.
Even with this slowdown, 978 corporate investors stayed active in the U.S. during 2024. Deal sizes showed interesting shifts: seed and late-stage deals grew by 7% and 16% respectively, while early-stage deals dropped by 23%. Governance also tightened, with only 19% of deals skipping committee review, compared to 38% in 2021.
"Corporate investors are leaning into the ways they are different from VC investors and reaping the benefit in a tricky investment climate." - Global Venturing, 2024
These shifts highlight a focus on strategic goals and careful investment practices. Companies like Alphabet and Intel Capital have leaned into later-stage investments, aligning with corporate objectives and prioritizing thorough due diligence to achieve steady growth.
