SAP plans to double the number of startup investments in 2018 | #VentureCanvas

Anirban Sen | DealStreetAsia – VC


German software giant SAP SE, which earlier this year launched a global $35-million fund to invest in technology product start-ups, plans to increase its investments in 2018 and aims to close nearly twice the number of deals it signed in 2017, a top company executive said.

SAP will tap the world’s most innovative start-up ecosystems, including the Silicon Valley and Israel for the next big ideas in the technology products space,  Ram Jambunathan, senior vice president and managing director of the $35-million SAP.iO fund said in a phone interview.

“SAP has the bold vision to be the business software leader in the next generation of the cloud and digitization era. To achieve this, SAP realized that it needs to embrace innovation deeply because successful software companies that have achieved sustained success…have invested in ground-breaking innovation beyond incremental customer requirements ,” said Jambunathan.

SAP also runs a separate, joint-accelerator programme with US-based Techstars Accelerator called SAP.iO Foundry in Berlin. This year’s batch of 10 start-ups include five early-stage ventures from India—Praktice.ai, Sustanalyze, Greendeck, Bewgle and RefineAi.

The Berlin-based Foundry accelerator program, which is currently also present in cities such as San Francisco, New York and Tel Aviv, typically focuses on mentoring start-ups that are building disruptive solutions in areas such as artificial intelligence, machine learning and Internet of Things. SAP Foundry held its annual demo day for start-ups on Wednesday.

The SAP.iO fund makes direct equity investments of $150,000-250,000 in early-stage start-ups. The fund invested in an Indian start-up called Niki.Ai. earlier this year and Jambunathan did not rule out SAP backing more Indian start-ups in the future, given the depth and breadth of the Indian start-up ecosystem.

“Obviously, India is a very important market from a customer standpoint and an innovation standpoint and we have significant presence within India as well. We’ll continue to look for opportunities to invest in India and startups to support through our Foundry network,” said Jambunathan.

By the end of 2017, Jambunathan said the start-up would look to back at least 8-10 early-stage ventures, spending $1.5-$3 million in total from the fund.

“Next year, we will look to double that figure (of the number of investments),” he said.

This article was first published on Livemint.com

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