Corporate venture capital investing in young, entrepreneurial firms is an important tool through which large, established organizations can stimulate innovation and knowledge generation within their own boundaries. In this study, we examine the conditions under which CVC investing influences the investing firm’s degree of exploratory knowledge creation. This is an important question since exploratory knowledge creation helps firms discover new opportunities and generates the potential for future exploitation. However, little research has explored the determinants of the direction of knowledge creation resulting from CVC investments. Drawing upon the innovation search literature, we examine how characteristics of the startups funded by corporate investors enhance novelty of investors’ knowledge creation.