Deutsche Telekom revamps ventures unit

The German telecoms company is to restructure its E500m venture capital operations to match the company’s corporate ‘pillar’ structure.

T-Venture, the corporate venturing division of German telecommunications company Deutsche Telekom, is to be broken up into four divisions as the company seeks to position its venturing investments in line with its ‘four-pillar’ development strategy.

T-Venture's current financing volume of E500m will be split into four separate funds. These will include the T-Mobile Venture Fund and the T-Online Venture Fund, both of which are already in place. The other two funds, which will each have funds of around E100m to invest, will reflect the firm’s business in its T-Systems and T-Com divisions.

Deutsche Telekom will now look to make investments in companies that fit with the group's divisions and prospective equity-investment companies, focusing primarily on start-up level investments across relevant technology areas.

Following on from the re-alignment, Dr Klaus Radermacher has been appointed to T-Venture's executive management team to implement the new strategy and restructure the company’s venture capital portfolio. Radermacher will assume the role of chief technology officer, responsible for assessing future investment projects.

Deutsche Telekom has averaged eleven deals per year over the course of 2000 and 2001, targeting investments in innovative and high-growth service and high-tech companies. T-Venture has made only three investments this year, including its participation in a E10m financing of Ipanema Technologies, a Paris-based IP systems provider.