US-based company builder The Hive closed a $26.5m fund yesterday with contributions from industrial conglomerate General Electric, industrial automation technology producer Rockwell Automation, telecommunications firm Verizon and enterprise software provider Software AG.
Verizon invested through its Verizon Ventures subsidiary, while the others participated directly. Limited partners in the fund, the third to be closed by The Hive, also include venture capital firm March Capital Partners and a range of undisclosed private investors.
Founded in 2012, The Hive is a VC firm and co-creation studio that targets technologies including artificial intelligence (AI), edge intelligence and computer vision for use in industries such as financial services, retail and insurance.
The firm initially makes seed-stage investments ranging from $1.5m to $2m, offering portfolio companies follow-on funding, syndication assistance and co-working space in Palo Alto, California.
The Hive III will favour startups looking to exploit AI and blockchain-related technologies in enterprise settings, industrial verticals such as logistics or health, and the industrial internet-of-things space. It expectes to spawn seven startups within the next three years.
The Hive has so far co-created or backed 24 companies, achieving six exits. Verizon Ventures had previously backed its second fund, Hive II, which closed in 2015 with $22m.
Vijay Doradla, director at Verizon Ventures, said: “This will offer Verizon an opportunity to support crucial enabling technologies and application ecosystems in AI, blockchain, robotic process automation and other areas.
“We believe The Hive, utilising its growing entrepreneurial network and innovation track record, will offer Verizon unique value as we build the next-generation network economy.”