Oil giant BP shutters its corporate venture arm after 20 years

BP Ventures, the corporate venture arm of oil giant BP, is shutting down after nearly 20 years of operation. This move comes as a surprise to many in the industry, given the significant role that venture arms have played in driving innovation and growth for large corporations. The reported lackluster returns on investment from BP Ventures likely contributed to the decision to shutter the unit.

The closure of BP Ventures highlights the challenges that corporate venture arms face in delivering strong returns on investment. Many of these units were established in the early 2000s, with the goal of driving innovation and growth through strategic investments in startups and emerging technologies. However, measuring the success of these investments can be difficult, and many corporate venture arms have struggled to deliver returns that justify their existence. As the energy industry continues to evolve and shift towards new technologies and business models, it's likely that we'll see more corporate venture arms re-evaluating their strategies and priorities.

As the energy industry continues to navigate the transition to a lower-carbon future, it's likely that we'll see a renewed focus on venture investing and innovation. Companies like BP will need to continue investing in new technologies and business models in order to remain competitive. To watch next: how other corporate venture arms in the energy industry will respond to the closure of BP Ventures, and whether we'll see a shift in focus towards new areas of investment, such as renewable energy or digital transformation.

Originally reported by techcrunch.com. ChannelNews adds analysis for technology readers.