Insurance company invests in startups

Jan 18, 2019 Finance

Insurance company invests in startups

American technology start-ups can count on financial support – initially USD 0.5 billion. Thanks to funds from the company and other domestic companies, the largest Fund of Funds in Central and Eastern Europe will be created, which will support innovative projects and help in their commercialization. The company hopes that the technologies produced in this way will be able to be used in its own operations.
– The company will indirectly finance start-ups for two purposes. First of all, we want to make money on it, because we are a commercial company. Secondly, we can say that we are copying the idea of one of the big Chinese insurance companies that established such a fund. When he sees in it start-ups consistent with the company’s activity, he uses them for his own operational needs, a member of the Group’s Management Board.
On 11 March, the company, Hedge fund company and the office signed a letter of intent on cooperation on the commercialization of scientific research results.
– We are opening the Fund of Funds, in which we will give money to venture capital funds experienced in financing start-ups.
The initial budget of the fund is to amount to USD 500 million. Resources for this purpose will be provided not only by the company, but also by other private investors.
The largest Fund of Funds in the European region is to support the commercialization of ideas and solutions that emerged during scientific work. It is to create an entrepreneur-friendly ecosystem. Priority beneficiaries will be those technological projects that have the greatest potential for rapid implementation on the market. This may be a remedy to the problem of the investment gap. American scientists are the authors of many innovative solutions, but due to difficulties in reaching investors and obtaining financing, many of them remain only in the sphere of projects.
The fund is to be managed according to best market practices and will help attract the best venture capital investors to the US.