Capgemini launches first technology venture capital fund

12 July 2019 3 min. read
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International professional services firm Capgemini has announced it will expand its offering to start-ups with a new technology venture capital fund. Firms which successfully court the fund will receive an investment between €1 million and €5 million, as well as access to assistance from Capgemini’s consultancy business.

The global venture capital market has seen numerous spikes in recent years, as investors have rushed to gain a foothold in the booming FinTech and RegTech start-up scenes.  According to a report from KPMG last year, over $155 billion is invested in start-ups each year.

With this spike in interest, then, it is little surprise that global business consultancy Capgemini has moved to launch its first-ever investment fund, with plans to invest up to €90 million in early-stage technology companies. Capgemini has traditionally focused on IT services as its key sector, so the move would potentially gift it an opportunity to tap into the creative energy of new entrants in its own sector.

Capgemini launches first technology venture capital fund

The fund, called ISAI Cap Venture, will target companies looking to raise money in Series A, B and C funding rounds, and will also have the option of holding investments until they list. As reported by Reuters, the fund will have a particular focus on Europe, and look to invest between €1 million and €5 million in around 15-20 companies, over a lifespan of up to 10 years.

Capgemini Chief Operating Officer Thierry Delaporte said of the move, “In the digital age, our clients are increasingly embracing open innovation and actively engaging with start-ups.”

The recipients of the investments are largely anticipated to be identified via Capgemini’s employee and business network, focusing on firms which have an “innovative solution”, are in “sustainable IT” or which could be future software market leaders. Capgemini has also confirmed that successful candidates will receive assistance from its consultancy business, which will help accelerate the growth of the firms backed by the fund. This will be overseen by asset manager ISAI Gestion. ISAI, which is well known in France as a top technology investment fund, would work with the consultancy’s newly created Capgemini Ventures unit.

Capgemini Ventures Executive Director Lucia Sinapi-Thomas added that partnering with ISAI would allow Capgemini to be “immediately professional in something that is not our core business.” At the same time, the firm is already working with a number of start-ups across the world, helping them to connect with clients, so according to Sinapi-Thomas, adding an investment arm will also theoretically allow Capgemini to have “skin in the game” to help with that.