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TMT Ventures, the venture capital fund seeded by Telecom New Zealand announced today in Sydney that it had secured its second corporate partner, Lucent Technologies.
Lucent Technologies has committed A$8 million (NZ$10 million) of capital to the A$120 million (NZ$150 million) corporate venture capital fund. TMT Ventures was launched in Wellington yesterday by Telecom New Zealand Chief Executive Theresa Gattung. Telecom New Zealand has committed A$33 million (NZ$40 million) of initial capital.
Lucent Chief Operating Officer Don Baldwin said from Sydney that Lucent had joined the corporate venture fund for several reasons.
Mr Baldwin said: “Lucent is two years old in Australia and New Zealand and we have nearly 1,000 employees. Although we are growing rapidly ourselves, we see TMT Ventures as broadening our network further.”
“Lucent has in the past partnered a number of initiatives and this is another example of that. The strength of management team was also very compelling,” Mr Baldwin said.
TMT Ventures will invest in growth businesses in the technology, media and telecommunications (‘TMT’) sectors in Australia and New Zealand. The fund is being managed by TMT Management, a joint venture between venture capitalists Advent International and Direct Capital. Boston based Advent International manages US $3.5 billion in private equity and is a world leader in managing corporate venture funds. Direct Capital is a leading Australasian venture capital fund manager.
TMT Ventures is in discussions with other corporate investors and institutions as part of a programme to raise A$120 million.
Lucent is a global giant in the communications industry. It has offices in more than 90 countries and a market capitalisation of US$204 billion.
TMT Executive Chairman, Ross George said he was delighted that the second corporate to join the fund was of the size and standing of Lucent Technologies.
Mr George said: “I am very proud to have Lucent as an investor in TMT Ventures. Lucent is a very strong corporate partner and we see them being of great assistance to the fund and to investee companies.”
Mr George said that as a corporate venture capital fund, TMT Ventures will be distinctive in the Australia and New Zealand region. Corporate venture capital goes a step beyond traditional venture capital. It is distinctive because it brings not only capital but the technical expertise and support of the sector’s larger players. The benefits to investee companies include procurement leverage, technical assistance, international networks and credibility - which can be particularly valuable in the early stages of a business’s commercial development.
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