It was a curious year in corporate venture capital (CVC). Some investors made significant investments in the AI rush, while others slowed their investments due to a lack of exits.

Despite the challenges, technology investments were rather strong. Here’s a breakdown of the trends that emerged in 2024.

Corporates Spend Big on AI Despite IPO Drought

The IPO market continued its struggle for the third consecutive year, with tech companies facing significant challenges in going public.

While opportunities in the public markets remained scarce, private capital flowed abundantly into AI investments. Notable investments included Microsoft’s $6.6 billion partnership with OpenAI, which valued the company at $157 billion.

Additionally, Amazon’s $4 billion investment in competitor Anthropic marked significant interest in generative AI. Google also participated in a $5.6 billion round to fund autonomous taxi service Waymo.

However, Databricks led the pack with a staggering $10 billion investment, indicating a possible resurgence in startup funding into 2025.

Emergence of AI Funds

Building on the previous year’s momentum, many corporates established dedicated AI funds in 2024. Major players like Saudi Aramco and Salesforce Ventures announced substantial commitments to AI investments.

Saudi Aramco allocated 20% of its $500 million Wa’ed Ventures fund for AI, and Salesforce Ventures launched a second AI fund worth $500 million. Cisco Investments made headlines with a $1 billion fund dedicated to AI startups.

Data Centers Respond to AI Demand

The rise of generative AI brought heightened demands on data centers to process enormous amounts of data. SoftBank Vision Fund helped GDS International raise $1.2 billion for expansion, showcasing the growing importance of data infrastructure.

Companies like Celestial AI and Altair also secured funding for technology aimed at enhancing data center efficiency.

Focus on Renewable Energy Innovations

With established alternative energy sources like solar and wind generating substantial interest, investments in new energy generation methods began to flow in 2024. Corporations engaged in nuclear energy, particularly small modular nuclear systems, with Amazon’s Climate Pledge Fund leading a $500 million round for X-Energy.

Carbon Capture Investment Grows

This year witnessed significant interest in carbon capture technologies. Startups like Heirloom and CarbonCapture attracted substantial funding, while initiatives focused on turning CO2 directly into usable fuels or materials were also popular among corporate investors.

Pharmaceutical Ventures Expand

The pharmaceutical sector embraced opportunities around Semaglutide medications for obesity, with startups engaging in new drug development raising significant funds this year as well.

Robotic Surgical Technologies Advance

Robotic surgical technologies saw increased funding, with companies like Neocis and ZAP Surgery attracting investments this year, highlighting the long-term trend towards automation in healthcare.

China’s Space Ambitions Grow

Amidst a notable shift in investments towards East Asia, China aimed to bolster its capabilities in space technology, demonstrating the significant global interest in space innovation.

The Lessons from Losses

The year closed with reminders of the risks inherent in venture investments as notable startups faced challenges leading to bankruptcy—highlighting the volatility in high-stakes investment sectors.