SAP Ventures, an affiliate to SAP AG (SAP - Analyst Report) declared recently that it has raised a total of $1 billion in a year for investment. The company’s SAP HANA Real-Time Fund raised $405 million along with $650 million raised for a new direct investment fund, SAP Ventures Fund II. SAP AG is a limited partner of SAP Ventures, which is an independent venture capital firm.
SAP Ventures total assets are now at about $1.4 billion, including the $353 million that was raised from the SAP Ventures Fund I, launched in 2011. SAP Ventures is focused on building an expansive ecosystem for its partners and enterprise customers including venture capitalists, intellectual founders and some of the world’s most innovative entrepreneurs.
SAP Ventures provide their customers with proven strategies for expanding the existing business and for new acquisitions. The SAP Ventures Fund II has been designed to fund firms having proven business model; whereas the SAP HANA Real-Time fund caters to funding firms in their initial growth stage.
The company is also assembling a business development team comprising 10 members who would be responsible for leveraging the potential of the company’s enterprise ecosystem in collaboration with SAP AG. This team will be working with firms in SAP Ventures’s portfolio and providing them access to the strategies for accelerating growth and increasing revenues.
SAP Ventures has been witnessing a record growth in 2013; having initiated as many as five IPOs and seven mergers & acquisitions to date. The companies in its portfolio that went public include Control 4, Just Dial, Marin Software, Tremor Video and Violin Memory, whereas the seven firms that were acquired included Aepona, Apriso, Datria, ExactTarget, Ignite, ScaleIO and Voxeo.
In the near future, SAP Ventures expects to expand its network of portfolio companies and investment experts via its SAP HANA Real-Time Fund. This will lead to an increased availability of strategically important connections for all the entrepreneurs associated with SAP.
SAP currently has a Zacks Rank #3 (Hold). Other stocks in the software industry that are more promising at the moment include Dealertrack Technologies, Inc. , Trend Micro Inc. (TMICY - Snapshot Report) and Infoblox Inc. (BLOX - Snapshot Report), all three carry a Zacks Rank #1 (Strong Buy).