German telecom giant Deutsche Telekom has announced it is creating a $620 million investment fund for new and mature tech startups in an effort to “considerably expand the scope and volume of its investments in venture capital and technological innovation.”
The new company will be called Deutsche Telekom Capital Partners (or DTCP).
The fund will invest in companies over the next five years and replaces the telecom company’s previous smaller investment vehicle, T-Venture. The new fund will more than double its investment commitments.
‘Best of both worlds’
Deutsche Telekom chief executive Tim Höttges said in a press release:
DTCP combines the expertise and strength of a large corporation with the agility and flexibility of a small investment company: the best of both worlds to take Deutsche Telekom forward.
DTCP will have a “special focus on Germany’s exciting and growing startup scene,” according to the release.
In addition, the fund will let DT branch into private equity investments in larger tech companies to “foster operational cooperation between over-the-top companies and Deutsche Telekom.”