SAP Ventures plans to be disrupter, not disrupted, with new $650M to invest
- Cromwell Schubarth
- Senior Technology Reporter- Silicon Valley Business Journal
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"The venture capital industry right now is being disrupted," the head of the Palo Alto-based venture wing of German software giant SAP told me.
"It's happening both from the bottom up with all the angels and micro funds and AngelLists of the world," he said. "And it's also coming from the services model that firms like Andreessen Horowitz are bringing to bear."
"But folks like us who are the best of both worlds in terms of traditional venture and corporate venture capital are playing our part, too," Marakovic told me.
SAP on Wednesday announced its third fund, with $650 million to invest, bringing his total raised in the past year to more than $1 billion.
It follows on the first direct investment fund raised by SAP Ventures in 2011, which had $353 million and is fully committed. The second fund has $405 million and invests indirectly through early stage venture firms, including SV Angel, August Capital and Data Collective.
New investment tools rolled out recently by funders and founders platform AngelList has some talking about disruption of traditional venture investing, but Marakovic is skeptical about that.
"It won't affect us in any substantial way unless it disrupts early stage investing, which could affect some of the funds we invest in through our fund of funds," he told me, adding, "I'm not concerned. I think AngelList might replace some angel groups but I don't think a collective of non-professional investors will replace professional VCs."
Cromwell Schubarth is the Senior Technology Reporter at the Business Journal. His phone number is 408.299.1823.
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