Ericsson VC Fund To Fuel Mobile Technology Innovation - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Ericsson VC Fund To Fuel Mobile Technology Innovation

Ericsson Inc. and three financial powerhouses plan to begin making investments in mobile Internet technologies through a $300 million venture-capital fund. Ericsson, Merrill Lynch, and two Swedish companies, AB Industrivarden and Investor AB, each will contribute $75 million and expect to begin making investments in the next two months.

Kathy Egan, an Ericsson VP, says the fund is intended to leverage Ericsson's mobile infrastructure technologies by fueling development of complementary products and services. According to Egan, the fund will invest in companies at various stages, and Ericsson hopes to take preferred equity stakes and occupy board seats in each of the investments. Egan says studies indicate that by 2003, mobile Internet users will outnumber their wired counterparts. In light of such explosive growth, she says, it was important that Ericsson remain aggressive in encouraging industrywide development.

Tim Luke, a senior VP with Lehman Bros., says Ericsson has been talking about forming a venture fund for a while, and he sees the decision to finally do so as a strong move. "If Ericsson's goal is to deliver data across wireless networks, they need to have a lot of innovators driving the development of applications and services," Luke says. He expects to see more of these corporate venture funds being created.

Egan says each of the financial players in the fund was selected for strategic reasons. Investor AB is one of Ericsson's largest shareholders, and Merrill Lynch has a global reputation as a technology underwriter. Industrivarden, meanwhile, is one of Sweden's largest holding companies, with a number of portfolio companies competing in mobile technologies markets. Some of those companies are expected to be recipients of the fund's investments.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Slideshows
IT Careers: 10 Industries with Job Openings Right Now
Cynthia Harvey, Freelance Journalist, InformationWeek,  5/27/2020
Commentary
How 5G Rollout May Benefit Businesses More than Consumers
Joao-Pierre S. Ruth, Senior Writer,  5/21/2020
News
IT Leadership in Education: Getting Online School Right
Jessica Davis, Senior Editor, Enterprise Apps,  5/20/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll