Investing in VC funds gives Honda Xcelerator Ventures, the Japanese carmaker’s investment arm, a view into moonshot technologies while seeding a future pipeline for direct, strategic investments, says Hyundo Kwon, principal at the corporate venturing arm.

Corporate investing in venture capital funds is becoming an increasingly important part of corporate venture strategy. More than half of CVCs now take limited partner stakes in VC funds, according to GCV Keystone survey data. Thirty-five percent of CVCs allocate more than…