M12 operates from a single evergreen fund capitalized directly off Microsoft's balance sheet and explicitly positions itself as financially driven rather than "strategic," having removed restrictive corporate terms from its term sheets in 2019 to stay founder-aligned. The fund uses a thesis-driven model tightly integrated with Microsoft's internal product teams, with over half its staff dedicated to portfolio value creation rather than new deals, steering companies into Microsoft product integrations and co-selling motions while investing only in areas where Microsoft's cloud, security, and distribution footprint can be a decisive accelerator.