Samsung plans to invest $1.1 billion in new venturesSamsung Electronics, the world’s largest maker of mobile phones, unveiled two venture funds to invest a total of $1.1 billion, aimed at creating new businesses for its unit that makes memory chips and electronics parts.
The company announced the $1 billion Samsung Ventures America Fund and the $100 million Catalyst Fund for early stage startups, as well as a strategy and innovation center in Menlo Park, California, at an event near the site on Sand Hill Road.
“We must reach out to global hot spots and global talent,” Sohn Young, president and chief strategy officer of device solutions for Samsung, said at the event. “This is the epicenter of disruptive forces.”
Like other large technology companies such as Intel, Google and Microsoft, Samsung is trying to use its cash to encourage the development of technology that will benefit its business in the future.
Traditional venture capital investors aren’t investing in basic science and technology startups, creating a gap that Samsung intends to help fill, Sohn said.
Samsung’s venture arm, now headquartered in Seoul, has more than $1 billion in assets under management, and did 20 deals worth $160 million in 2012, Sohn said.
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