Telstra to exit venture capital fund rebranded as Titanium Ventures
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The news: Telecoms giant Telstra is looking to sell its investments in the venture capital fund that it set up in 2011, as part of efforts to free up capital and cut costs.
The numbers: Telstra Ventures, which on Tuesday rebranded itself to Titanium Ventures, has about $1.35 billion in funds under management, with investments in 99 portfolio companies. It has operated independently of Telstra since 2018.
Telstra did not disclose how much it has invested, but according to its annual report it held 62.5% in Telstra Ventures’ Fund II and a 50% stake in Fund III.
The context: Australia’s top telco last month announced up to 2800 job cuts and wide-ranging organisational changes as part of a plan to save $350 million. Telstra CFO Michael Ackland on Tuesday said the company is exploring options to sell its current investments in Telstra Ventures’ funds, consistent with its focus on capital discipline and active portfolio management.
“We believe that through the relationships we have fostered over the years, we can continue working together and Telstra will be able to access leading edge technologies in the portfolio companies of Titanium Ventures,” he added.
Titanium Ventures said it would continue to focus on AI, cybersecurity and climate tech, with about half of its staff based in the US.
The source: Telstra Ventures
