In the latest happening in Silicon Valley, Technology Giant Microsoft has created its own venture group. This group will identify strategic and financial investments much earlier than has been the case so far, and will focus largely on cloud technologies.
If we look into Microsoft’s history, the tech giant keep on engaging with startups. Microsoft done a lot of investing in past, but not in the early stage. Microsoft’s entry into venture capital will fill those gaps, if anything left overdue. With so much venture capital in this market stuck in Silicon Valley, Microsoft continually faces a self-replicating cycle of that area being the sole focus of start-ups. So it’s hoping to change that.
Microsoft will focus its early stage investment on cloud technologies, which is both its core competency and the future of the company. “Companies developing product and services that complement Azure infrastructure, building new business SaaS applications, promoting more personal computing by enriching the Windows and HoloLens ecosystems, new disruptive enterprise, consumer productivity, and communication products around Office 365 are interesting areas from an investment perspective. But it is also interested in companies doing work in machine learning and security.
Microsoft has also opted to go small when it comes to investing in startups. That is, instead of creating a top-heavy and large team, Microsoft Ventures is a small but nimble team. But the firm expects this group to quickly have a global impact. Microsoft is not aiming to hit a specific number of investments annually but it is expected steady activity over the course of the year.