Microsoft M12 Boss Shares His 5 Tips for Founders Seeking Investment

On Oct 2, 2021

Microsoft’s venture-capital arm, M12, has invested millions into more than 100 startups since 2016.
It’s among the growing number of corporate VCs backing startups in the US and Europe.
M12’s recently appointed managing director shared his top tips for founders seeking investment.
See more stories on Insider’s business page.

It’s been five years since M12 — previously Microsoft Ventures — launched.

In that time, the tech giant’s venture-capital wing has pumped millions of dollars into 110 startups including the ID-verification startup Onfido and the Norwegian education-tech giant Kahoot. M12 usually writes checks from $1 million to $20 million.

After the firm’s boss Nagraj Kashyap left for SoftBank in February, Matthew Goldstein, a Silicon Valley veteran and longtime M12 investor, was appointed the company’s new managing director.

“I’ve always thought that corporate VC done right should be better, not worse, than institutional VC, as they have something unique to offer entrepreneurs,” Goldstein, who is based in London, told Insider.

“Microsoft struck me as the most important and partner-friendly software company upon which to build a B2B VC, so when they decided to set one up, I jumped at the chance.”

Over the past decade, corporate venture funds run by tech giants — including Google’s GV, Salesforce Ventures, and Intel Capital — have been among the most active in Silicon Valley.

Unlike most VC firms, which are focused on making returns on their investments, such corporate funds are usually more interested in how their portfolio might work with their parent company, something Goldstein said had led to them earning “a reputation for being tourists or time wasters.”

“Because of that stereotype, we have to work harder than others to prove that we’re positive contributors to the startup ecosystem,” he said.

“To reinforce that commitment, we like to work with co-investors who are also committed to positively contributing to the ecosystem — particularly if they’re able to bring something unique to the table.”

Insider sat down with Goldstein to find out his tips for founders hoping to win investment from a tech giant like Microsoft.

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