ServiceNow targets enterprise-software startups with $1 billion investment in venture arm

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Cloud-computing firm ServiceNow Inc said on Wednesday it would invest $1 billion in its venture arm by 2026 to back enterprise software-focused startups in artificial intelligence and automation, among others.

The investment in ServiceNow Ventures comes at a time when funding for early-stage technology companies has dried up due to rising interest rates and high inflation.

Since its inception in 2015, the venture arm has invested about $300 million across 45 companies.

"Enterprise software is more mission-critical than ever before, as companies look to drive innovation, efficiency and productivity,” the California-based company said.

Last month, ServiceNow became a strategic partner and anchor investor in Smith Point Capital Fund I, an enterprise software-focused venture investment firm founded by former Salesforce Inc co-CEO Keith Block.