Alcatel today announced the formation of Alcatel Ventures Fund I Limited Partnership, an information technology venture capital partnership, investing primarily in Internet and related high technology emerging and "start-up" companies in the US and in other high growth countries.
Steve Y. Kim, previously CEO of Alcatel's Internetworking business unit and founder of Xylan, a company acquired by Alcatel in 1999, will be the Fund's Managing Partner and Managing Director. He will be joined by Victor J. Lee, also a co-founder and Partner, who was formerly at BT Ventures, the venture capital division of Bankers Trust. Alcatel Ventures will be a limited partnership company and it is planned to have an eventual target fund of $150 million. Alcatel, as the largest and majority limited partner, will be the lead investor.
The Fund's general investment strategy will be to maximize returns through both leveraging established operations and in new start-ups, focusing on telecommunications, software, technology services and the Internet. Companies within the portfolio of the Fund will also be able to explore synergies with Alcatel.
"Alcatel has a diversified strategy to developing and fostering new technologies - a vital part of our business and a proven track record in internally developing leading edge technologies like ADSL and optical products", said Serge Tchuruk, Chairman and CEO of Alcatel. "This new investment vehicle widens our ability to acquire critical technologies quickly and to ensure that we have a finger on the pulse of the latest telecoms developments."
"In a fast changing world this Fund will provide an opportunity for the next generation of technology companies to get the backing they need from experienced and well resourced companies like Alcatel" said Steve Kim. "I am very excited about the opportunity to promote the 'Silicon Valley' business model around the world and to continue working with Alcatel in bringing future technologies to the market." The Fund will focus on opportunities in the West Coast of the United States and further afield, especially in Europe, Israel and Korea. For start-up companies the Fund can add significant value beyond just providing capital. The Fund will actively help portfolios companies in the development of their strategy and help build and strengthen the management teams, provide operational experience, venture capital expertise and broad business networks. Alcatel Ventures will be based in Los Angeles and has offices in Menlo Park, CA and Seoul, Korea.
Published by Israel's Business Arena on January 25, 2000.