ServiceNow’s venture arm to invest $1B in enterprise software startups with focus on AI & Automation
In early 2020, we wrote about ServiceNow after the cloud-computing firm acquired conversational artificial intelligence (AI) platform startup Passage AI to advance its deep-learning AI capabilities.
At the time, ServiceNow said the acquisition will accelerate its vision of supporting all major languages across the company’s Now Platform and products. With interest in AI on the rise, ServiceNow is doubling down with billion-dollar investments in promising enterprise software startups in AI and automation, among others.
Today, the Santa Clara, California-based ServiceNow said on Wednesday it would invest $1 billion in its global strategic venture arm, ServiceNow Ventures, by 2026.
The investment in ServiceNow Ventures comes at a time when funding for early-stage tech startup companies has dried up due to rising interest rates and high inflation. The company’s long-term investment and strategic expansion show its continued commitment to nurturing and advancing the next generation of enterprise technology startup companies.
Over the past year, the technology startup and venture capital landscape has experienced significant fluctuations. Despite startup funding reaching a nine-year low, as reported by data firm Preqin Ltd., the momentum of digital transformation remains unabated.
Enterprise software has become increasingly vital as organizations strive to foster innovation, streamline operations, and enhance productivity. In order to fulfill these customer requirements, technology startups require not only financial resources but also operational support to unlock their maximum capabilities.
“Enterprise software is more mission-critical than ever before, as companies look to drive innovation, efficiency, and productivity,” the California-based company said in a news release.
“Net‑new innovation is the only way forward. With our multi‑faceted investment strategy, ServiceNow Ventures is seeking out visionary founders and their game‑changing ideas to bring greater value to the ServiceNow Platform, our broader ecosystem, and the industry as a whole,” said Philip Kirk, senior vice president of corporate business development at ServiceNow. “With a steadfast commitment to transform the future of work, we are excited to deepen our investments, collaboration, and mentorship with companies that share in our purpose and mission to revolutionize the way work gets done.”
To date, ServiceNow Ventures has invested about $300 million across 45 companies since its inception in 2015. In April, ServiceNow became a strategic partner and anchor investor by joining forces with Smith Point Capital Fund I. This venture investment firm, established by Keith Block, former co-CEO of Salesforce Inc, concentrates on enterprise software investments.