Corporate Venture Capital Trends to Watch: AI, Sustainability, and Beyond

You might be wrong if you think that corporate venture capital is just big companies throwing money around, because it’s more strategic than that. These investments are shaping our future. The corporate venture capital trends say that the number of AI-related cancer research publications has increased dramatically, underscoring the growing intersection of AI and life-saving technologies.

But how do these corporate venture capital trends impact your business? Because CVC is behind many innovations you'll use tomorrow. We're seeing a shift in how corporations bet on the future, and it's not just about profits. It's about solving real problems. In this blog, we’ll look at the venture capital trends driving this change and what they mean for you.

What is Corporate Venture Capital?

Corporate venture capital is not the same as regular venture capital, as in this practice, businesses invest their money where their future is. Instead of just chasing returns, these businesses invest in startups that could give them an advantage.

By backing startups, these capitals get opportunities for corporate innovation. As corporate venture capital trends advance, businesses can access new talent, see a glimpse of the future tech, and even open doors to new markets.

For further clarity, let’s consider these two examples:

• Google Ventures: They place strategic bets in corporate IT, AI, and healthcare.

• Intel Capital: Since entering the market in 1991, Intel Capital has made significant investments in technology to maintain a competitive edge.

However, the greatest names in technology are not the only ones following trends in venture capital. Participating corporations include Unilever Ventures, which focuses on digital innovation and personal care. These aren't just random bets - they're deliberate acts to stay relevant in a world evolving more quickly than ever.

Trends in the Corporate Venture Capital Sector

Corporate venture capital sets trends rather than just chasing them. Therefore, CVC funding played a significant role in the energy, transportation, and sustainable industries of 2023.

This dominance by corporate venture trends was again observed in 2024, majorly focusing on telecommunication and pharmaceutical technologies. This is quite a transformation in corporate capital expenditures.

• Innovation Driven by Technology

One factor that plays a major role in this is technology investments. Executives tend to invest more in areas of artificial intelligence, blockchain, and quantum computing, among others. However, it's not just about the newest, flashiest device. Real-impact startup investments are becoming increasingly popular.

• Responsible Investment

Innovations in health and sustainable technology are also receiving a lot of attention, as they are smart businesses and good PR. Companies are realising that solving global challenges can also lead to significant opportunities.

This approach to corporate thinking is as much about future proof as it is about revenues. From green energy to digital health, we can look into the future of business through the trends we see in CVC.

AI and Machine Learning: Driving Innovation

AI is rewriting some of the major rules. And corporate venture capital is betting big on this revolution. In healthcare, it's predicting diseases before they hit. In finance, fraud is identified faster than a human could. AI also personalises shopping experiences so that you'll believe the store was designed with you in mind.

The use of AI is becoming more accessible every day. There's a plethora of startups developing AI tools that don't require any expertise to use. The truly exciting part is this democratisation of AI – where it becomes more accessible to everyone.

The trouble is that technology isn't the only factor. It's about how we use it. The smartest CVC firms aren't just following the latest AI trend. They are searching for startups that are aware of the human side of the equation.

Sustainability and Green Technologies: A Shift Towards Responsible Investment

In the world of corporate venture capital, green is the new black. And when we say this, we just are not talking about fashion. Businesses are starting to understand that sustainability is not simply a "nice-to-have." It is essential if you are planning for long-term success. Here are some examples:

• British Petroleum Ventures: They primarily focus on clean energy startup investments. And that too, strategically. They understand that solar and wind energy will power the world instead of oil.

• Siemens: They are supporting businesses redefining how cities are constructed and powered.

But this is a lot more than simply putting solar panels on every rooftop. This sustainable investment also represents the kind of innovation that pulls carbon out of the atmosphere without harming the environment.

• Why Sudden Green Fever?

It is because of ESG (Environmental, Social, and Governance) goals. Apart from the profits, investors increasingly demand solutions for environmental and social problems. The other reason could be the circular economy. It all comes down to utilising resources as efficiently as possible while reducing waste.

• Betting On the Future

These startup investments bet on the future of the business itself. As regulations tighten and consumers get savvier, companies that don't think green might get left behind.

BP Ventures has been investing in clean energy for 12 years. They have invested over $800 million in more than 40^[1] startups as a part of their ambition to become a net-zero company by 2050. Similarly, Siemens also plans to invest €1 billion^[2] in energy-efficient technologies. Their goal is to achieve carbon neutrality by 2030.

HealthTech and Biotech: Meeting Global Health Challenges

Not only did COVID-19 completely change our lives, but it also set off a fire under HealthTech investments. Companies with the potential to revolutionise the healthcare industry are receiving substantial funding from corporate venture capital firms.

• AI-Powered Diagnostics and Telemedicine

Think about telemedicine. These days, venture capitalists are placing significant bets on firms that enable remote doctor visits.

Johnson & Johnson Innovation is leading the way and providing funding for biotech innovations. And they're not alone, big pharma is realising that the next big drug might come from a tiny startup, not their own labs.

• The Development of Gene Therapy and Personalised Medicine

Another popular topic is gene therapy. CVCs are backing companies that could essentially modify your DNA to treat diseases. It goes beyond simply mending what is flawed. A whole new generation of entrepreneurs is concentrating on preventing illness in the first place.

Here, we're discussing personalised medicine, or medical care based on your particular genetic composition. Healthcare is being transformed by corporate venture capital, one investment at a time. And that's something that we should all be considering in the post-COVID world.

The Role of Deep Tech and Quantum Computing in Future Investments

The breakthroughs of the future will be powered by deep tech. Considering that these technological investments have the potential to completely transform industries, corporate venture capital firms are putting large bets here.

Quantum computing is the poster child of deep tech. Imagine being able to understand codes that would take millennia for current supercomputers to unravel in a matter of minutes. Quantum may also fundamentally change how we forecast financial markets, optimise supply chains, and develop novel pharmaceuticals.

What are the other deep-tech CVCs focusing on? Think about synthetic biology, developing materials, and connections between the brain and a computer. All these companies that are investing in deep technologies now, may become the giants of the future. There are various risks associated with it, but the rewards can be enormous.

Summing Up

Corporate venture capital is creating the future. If you are someone who follow these trends, it is important to stay updated about quantum computing, artificial intelligence, sustainability, and health technologies.

What comes next? Anticipate bolder investments in technologies that address actual issues. The distinctions between industries will become hazier as innovation accelerates.

The message to firms is crystal clear: make these investments or risk falling behind. For entrepreneurs, the challenge is to get access to this stream of corporate funding and knowledge. Work together with GrowthJockey to begin investing and make sure you succeed in the market.

FAQs

1. What is the trend in venture capital in 2024?

Most firms are investing in AI, sustainability, and biotech. Lots of money is being invested in technology and healthcare-based projects. The goal is to fund ideas that have the potential to change the world, not just make money.

2. What is the VC trend in 2025?

Keep an eye on deep tech and quantum computing. They are going to explode. Health technology is another hot topic; think AI-powered diagnostics and customised therapy. Venture capital is going to be used to fund technologies that will completely change entire industries.

3. What are the 4 Ts of venture capital?

Team, Technology, Traction, and Timing. All you need is an effective team, groundbreaking tech, proof that people want what you're selling, and the right moment to strike. Nail all four, and VCs will want to invest in you.

4. What is meant by corporate venture capital?

Corporate venture capital, or CVC, is when large corporations invest in startups or smaller companies. These investments are made to access new markets, products, or technologies. Rapid profit is only one of the goals most of the time.

1. over $800 million in more than 40 - Link ↑
2. invest €1 billion - Link ↑