TLDR:
- Microsoft’s venture capital arm, M12, received $275 million this fiscal year to invest in startups aligned with its mission
- M12 currently has 110 active investments, including AI platform Typeface.ai
Microsoft’s venture capital arm, M12, has been given $275 million this fiscal year to invest in startups that align with the company’s mission, according to sources familiar with the matter. The amount of funding M12 receives each year has been kept confidential until now, but it is said to have remained relatively stable in recent years. M12 has 110 active investments in its portfolio, including AI platform Typeface.ai, and will focus on investments in AI, cloud infrastructure, and cybersecurity.
Microsoft founded its venture capital fund, initially called Microsoft Ventures, in 2016 with an annual investment of less than $100 million. Last year, the fund underwent a major strategy shift, with a focus on startups more closely aligned with Microsoft’s priorities. This change was not welcomed by all within M12, as it signaled a deemphasis on financial returns. However, funding businesses that could enhance Microsoft’s own products could have greater strategic benefits for the company.
One notable investment Microsoft made outside of M12 is its $13 billion investment in OpenAI, which has helped Microsoft emerge as a major player in AI. Microsoft has integrated OpenAI’s technology into its AI assistant, Copilot, which is being integrated into various Microsoft products.
