Meet M12: the venture capital arm of Microsoft
Other than “Do we need a beer pong table?”
The Microsoft team asks this question while looking at a pile of money that is now piling up to an absurd ~ $ 130 billion.
One way Microsoft is deploying money …
… Is via its venture arm M12
According to Crunchbase, M12 was launched in 2016 and – investing only Microsoft money – made 107 offers.
Here are the rules he currently follows:
- Financial returns: While some venture capitalists may acquire startups for strategic reasons, Microsoft is focused on achieving high returns.
- Own terminals: Microsoft imposes virtually no restrictions on its investments (previously it included a term “right of first” which allowed it to buy out the startup first, but this is no longer the case).
- Main investor: Microsoft is leading more investment rounds (and it increased its check size to $ 20 million from $ 10 million in the first 3 years)
Startups take advantage of the Microsoft machine
M12 invests in cutting-edge technologies in all sectors, from biotechnology and robotics to productivity and cybersecurity.
Through Crunchbase, a startup that receives a check gets “Microsoft muscle” behind it, including:
- Purchase startup services
- Integrating technology in the existing Microsoft ecosystem (Azure, Office)
Microsoft is not the only Big Tech VC
Google (GV), Salesforce (Salesforce Ventures), Qualcomm (Qualcomm Ventures) and Intel (Intel Capital) have all closed more deals than M12 in the past 5 years.
With a market cap of $ 2.2 million, it’s also difficult for a venture capital deal to shake things up.
To date, M12 has invested in 13 unicorns (valuation of $ 1 billion +). If it really wants to make a splash, we think Excel-themed bedding fabric is the next frontier: