CSP partnering with VC firm to eventually invest $1 billion with other telcos to advance digital transformation
Mardrid, Spain-based telecom provider Telefónica has partnered with an American venture capital firm to invest $200 million in the CSP’s startup incubation initiative dubbed Open Future, which connects entrepreneurs with investors and public and private organizations to guide research and development projects.
The VC firm, Coral Group, operates a Communications Investment Platform, which is where the $200 million will be put to work. Telefónica and Coral want to expand the Communications Investment Platform to $1 billion in capital by reaching out to up to four other CSPs.
In an announcement, Telefónica name checked next-generation network, big data, machine learning and the “Internet of Things” as specific target investment areas.
Company reps said: “Telefónica Open Future and CIP will seek to further accelerate and expand Telefónica’s global transformation into a digital telco being at the cutting edge of technology and smart investments.”
Telefónica has to date invested more than $340 million into Open Future. That includes funding of co-working spaces and acceleration academies, as well as funding joint investments with partners like China Unico, Tsinghua University and the governments of South Korea and Finland.
The investment is designed to “enhance the return on Telefónica’s future capital investments (more than $7.5 billion in 2014) and help transform the company into a major market player in areas such as next-generation networks, big data and machine learning, and the Internet of Things.”
Telefónica provides services to 325 million customers in 44 countries and employs more than 130,000 people around the world.
Coral Group focuses investments on late stage tech companies with a focus on mobile and telecom.
