SAP Ventures Raises $650M Fund as IPOs Increase

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Oct. 2 (Bloomberg) -- SAP Ventures, the startup-investing unit of German software maker SAP AG, raised more than $650 million for its latest fund, bringing the total amount it manages to $1.4 billion. Ari Levy reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Directly in startups and how much goes to investing in other funds?

We've raised a total of 1.4 billion dollars from its parent sap.

A billion of that goes toward direct investing.

Sap ventures can spend getting into startups from the early stage all the way up to companies getting ready to go public.

Then there is a $400 million pool that goes into investing other venture firms across the globe.

That's a way to spread across bond deals happening in europe, asia and south america from micro firms all the way up and you get a broader sense of the innovation happening.

To the point then, sap is not just investing.

One company that has been put into it is the food company, so it seems like sap ventures has some flexibility.

Each of these corporate venturing arms from intel to google to comcast has a different strategy in different reason why they do it.

They articulate that based on the value they can bring to these companies.

That is different based on what industry they are and they have different ways if they spell out financial returns.

It does have something to do with the strategic purpose of the investment.

I know sap ventures is looking to invest in companies that could displace some of the biggest tech vendors, but how does this work out?

This is interesting because sap along with oracle, name your legacy software or tech hardware company, their businesses are under attack by cloud computing, software or services subscription services.

And you go into the data center, you're talking about flash storage area these companies have come around since that architected their entire base.

Sap's you of this is that innovation will happen no matter what.

Newcomer the always displace old companies and you can i'll -- you can take part in it or you can fight it.

They are doing what they can to take part by getting a window into innovation.

They can potentially buy them and they are partnering with them as opposed to fighting it.

That makes all the sense in the world.

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