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How Citi Ventures Backs AI Startups It Thinks Can Transform Its Business

Dec 23, 2024 - news.crunchbase.com
The article is part of a series by Crunchbase News focusing on investors in artificial intelligence, featuring an interview with Matt Carbonara, managing director of Citi Ventures. Citi Ventures, the venture arm of Citigroup, has been actively investing in AI, focusing on areas like coding, compliance, data quality, and employee productivity. The firm aims to transform Citigroup's business through AI, with a significant portion of its workforce being developers. Notable investments include companies like Glean, Writer, Norm Ai, Poolside, and Galileo. Two portfolio companies, Lexion and Datavolo, were acquired this year by Docusign and Snowflake, respectively.

Citi Ventures is among the top 10 corporate venture firms investing in AI, with a team spread across major global cities and around 120 active portfolio companies. The firm is part of a broader trend of corporate investment in AI, alongside Google Ventures, Samsung NEXT, and others. Most of Citi Ventures' portfolio companies have integrated AI, with a focus on native AI applications that are beginning to generate significant revenue. Carbonara highlights the growing adoption of applied AI, noting that application companies like Glean and Writer are experiencing rapid growth and achieving meaningful revenue.

Key takeaways:

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  • Citi Ventures is actively investing in AI companies to help transform Citigroup's business, focusing on areas like coding, compliance, data quality, and employee productivity.
  • The firm has invested in several AI companies, including Glean, Writer, Norm Ai, Poolside, and Galileo, with two portfolio companies, Lexion and Datavolo, being acquired this year.
  • Citi Ventures is among the top 10 corporate venture firms investing in AI, with a team spread across major global hubs and around 120 active portfolio companies.
  • AI adoption is growing, with many of Citi Ventures' portfolio companies integrating AI, particularly in the native AI application space, which is seeing significant revenue growth.
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