US-based insurance firm State Farm formally launched a $100m corporate venture capital fund known as State Farm Ventures yesterday.
State Farm’s core business involves life, health, property and casualty insurance as well as financial services products, but it has also moved into areas such as home automation, connected care and backup energy technology.
The company has not disclosed any corporate venturing investments but it runs an open innovation and research hub called 485 Think Lab, and was one of 11 corporates that provided $11m in funding for autonomous vehicle research lab Mcity in November 2017.
Michael Remmes, a State Farm innovation executive who recently moved over from an associate general counsel position, will head the fund. It has not disclosed which particular areas it will target or the amount of funding it expects to provide for each portfolio company.
Remmes said: “Throughout our history, continuous innovation and adaptation has positioned State Farm as the leader in a highly competitive industry.
“In today’s rapidly changing marketplace, we recognise that even more innovation and adaptation are required to be relevant to customers in the future.”
The insurance segment has become an increasingly popular venue for corporate venturing, with US-headquartered insurance providers including Northwestern Mutual, New York Life, MassMutual, Blue Cross Blue Shield, Aegon, Liberty Mutual and USAA all operating CVC vehicles.