TLDR:
- Telstra plans to exit venture capital firm Titanium Ventures to focus on its own investment program.
- Titanium Ventures has almost $1 billion in funds under management and a portfolio of 99 companies.
Telstra, a telecommunications company, is seeking to withdraw from its venture capital firm, Titanium Ventures, to allocate funds towards its own investment program. Telstra Ventures, which was founded in Silicon Valley in 2011 and rebranded as Titanium Ventures, has nearly $1 billion in funds under management. The firm has invested in various companies such as DocuSign, Box, and CrowdStrike, leading to 12 IPOs and 17 unicorns. Telstra expressed its intention to sell its current investments in Titanium Ventures’ funds while maintaining a collaborative relationship with the firm to access cutting-edge technologies from its portfolio companies.
Titanium Ventures focuses on startups in AI, digital, and software sectors, with investments in companies like Cequence, ASAPP, and OpenSolar. Telstra reported losses from its investments in Telstra Ventures in its financial filings, prompting the decision to exit the venture capital firm. Telstra holds stakes in Telstra Venture Fund II and Telstra Ventures III and has invested AU$74 million in 2022. The company is committed to annual capex of around AU$3 billion, with a focus on expanding its 5G network coverage by 100,000 square kilometers by June 2025.
Ultimately, Telstra’s decision to exit Titanium Ventures reflects its strategic shift towards prioritizing internal investment initiatives and capital management. This move allows Telstra to streamline its focus on expanding its 5G network and enhancing its technological capabilities, marking a significant transition in its investment strategy.
