Deutsche Telekom has combined its venture capital investments into a new unit in an effort to streamline and boost investment in TMT innovation.
Deutsche Telekom (ETR:DTE) has combined its venture capital investments into a new unit in an effort to streamline and boost investment in TMT innovation.
The new unit, Deutsche Telekom Strategic Investments (DTSI), includes its original venture capital group T-Venture and investment fund Telekom Innovation Pool, the German incumbent said in a statement. Already operationally effective, DTSI has over €360m (US$399m) in capital under management.
The Bonn-based telco said T-Venture, founded in 2007, had grown into one of the largest corporate venture funds in the technology industry, with a portfolio of some 90 companies, including several unicorns.
“Recognising that Silicon Valley is no longer a region, it is a high-velocity platform, DTSI will allow us to deliver a more agile and consistent engagement model to startups seeking access to our strategic capital,” said T-Venture supervisory board chairman Vicente Vento.
“Through DTSI, we’re intensifying our commitment to support and encourage breakthrough innovation that produces new and exciting customer services and solutions.”
Deutsche Telekom is one of numerous operators investing in startups to help them compete and innovate in the digital age and make smart investments in the process. Telefonica, Orange and KPN are among other European telcos with dedicated venture capital units while, in the Middle East, Kuwait-based Zain recently participated in a funding round for MENA-focussed investment firm Wamda Capital, granting it access to the startups the firm invests in.
In July, Orange head of digital development, group development and strategy, Yann Kandelman, told TelecomFinance that key aims of its digital ventures unit include developing synergies and keeping abreast of new, disruptive technologies.
“Corporate venture is here to stay – M&A is the new R&D,” he said.
Separately, Deutsche Telekom has reportedly hired Credit Suisse to look into a potential sale of T-Mobile Netherlands as, like many European telcos, it seeks to exit mobile-only markets to focus on convergence.