UK-based insurance and asset management firm Aviva has launched its own corporate venturing unit, Aviva Ventures, and plans to invest £100m ($150m) in startups over the next five years.
Aviva Ventures will be based at Aviva’s Digital Garage in London, and will commit £20m per year to companies developing technology centred on the internet of things, data and analytics, customer experience, and services distribution platforms operating in the sharing economy.
Aviva has established the fund in order to help it identify innovative business models, services and technologies that can be applied to its digital insurance offerings.
The unit’s first investment is in Cocoon, the UK-based developer of a connected home security system.
Cocoon closed a $3m seed round also featuring Breed Reply Investments, a corporate venturing subsidiary of business services provider Reply, and undisclosed early-stage investors this week.
Ben Luckett, managing director of Aviva Ventures, said: “Aviva Ventures aims to invest in the best new technology and digital businesses around.
“It is highly appropriate that our first investment is with Cocoon – an exciting new business which combines a unique product, pioneering technology and a strong management team in a home security sector which is set for significant growth.”