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SAP Ventures Raises $650 Million For New Fund

Article  by Tomio Geron, Forbes Staff, covering start-ups, social and venture capital on October 02, 2013

SAP Ventures, a late-stage venture firm focusing on enterprise deals, has raised $650 million for a new venture fund.

The firm, which is independent of SAP but is funded solely by the business software company, raised a $650 million direct fund, SAP Ventures Fund II, which focuses on later stage deals. It also has a fund-of-funds called SAP HAVA Real Time Fund–recently increased to $405 million–that invests in early stage venture capital funds. Including a previous direct fund SAP Ventures I, the firm has $1.4 billion under management.

SAP Ventures is known more for its late stage direct investments, but the firm also uses the fund-of-funds to get exposure to early stage investments.

SAP Ventures focuses on primarily financial returns, but its companies often are enterprise startups that SAP can help because of SAP’s enterprise expertise. Some startups are also interested in SAP’s help in expanding into new markets globally.

SAP Ventures is also adding a new business development team of ten people who will help with customers, partners and other advice.

“Companies choose us over others because we can add value,” says Nino Marakovic, CEO and managing director, SAP Ventures. “It’s when LinkedIn LNKD +0.08% needed to go to market in India we can leverage that. Or when ExactTarget ET NaN% was going to London. And we naturally tend be the chosen partner in the enterprise space.”

With enterprise technology generating strong interest from recent IPOs like Workday WDAY -0.06%and Tableau, the firm is in a hot space. SAP Ventures has 12 exits this year and its recent IPOs include Control 4, Marin Software, Tremor Video and Violin Memory. Acquisitions include ExactTarget, ScaleIO and Voxeo. Other investments include LinkedIn and Box.