SAP Ventures unveils $650 mln for second fund

SAP Ventures has raised a second fund almost double the size of its first, a strong signal of parent company SAP AG’s growing commitment to venture investing.

SAP Ventures Fund II is more than $650 million in size and will target growth and later-stage investing in the United States and elsewhere in the world. The organization’s first fund of $353 million kicked off in 2011.

The new money is a big boost for the firm. “What you’re witnessing here is the next generation of a venture capital firm,” said Managing Director Nino Marakovic, referring to the organization’s unique structure. The firm has a sole LP—SAP AG—but is an independent organization making its own investment decisions and evaluated on its financial performance.

“We’re building out one of the largest VCs,” Marakovic said.

The new fund is the second injection of new money into the firm in recent months. In May, SAP Ventures announced the expansion of its HANA Real Time Fund to $405 million from its original $155 million. The HANA fund functions as a fund of funds investing in early-stage venture funds.

Accompanying the new money is a significant expansion of staff. SAP Ventures said it will hire about 10 new workers by the end of next year, increasing the size of the organization to about 30 people.

This story first appeared in Reuters Venture Capital Journal. Subscribers can read the original story here. To subscribe to VCJ, please email Greg.Winterton@ThomsonReuters.com.

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