Deutsche Telekom gets SK Telecom support for VC arm; 5G JV agreed

Photo by Tony Stoddard on Unsplash

Deutsche Telekom‘s venture capital arm said on Tuesday it was closing its second fund to new money after raising $350 million to invest in software service companies that are powering digital transformation.

Corporate sponsors SK Telecom of Korea and German optics company Zeiss have joined Deutsche Telekom, HarbourVest, Neuberger Bermann and others in backing the fund, Deutsche Telekom Capital Partners (DTCP) said.

SK Telecom‘s $30 million investment is part of a wider agreement with Deutsche Telekom to set up a joint venture to develop technologies and services for next-generation 5G mobile networks, the Korean company said separately.

DTCP’s Venture/Growth Fund II, founded last year, has already made five investments. These include leading a funding round at Fastly, which helps accelerate internet page loads and floated recently in New York.

The fund is focusing on so-called Software-as-a-Service (SaaS) companies that offer cloud-based software with subscription pricing – a “land and expand” model that makes it easy to ramp up use without major IT headaches, said DTCP head of Venture/Growth and Managing Partner Jack Young.

“From an investor’s perspective, an enterprise SaaS business is easily measurable and predictable,” Young told Reuters, adding that digital transformation will accelerate as artificial intelligence is increasingly deployed in software.

DTCP’s first fund, set up in 2015, raised $140 million from Deutsche Telekom. It has made four exits, returning half of the capital already to investors and remains invested in nine firms.

In total, DTCP is managing or advising on $1.7 billion in assets.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.