Bell Canada unit has launched a corporate venture capital arm, joining a slew of prominent Canadian corporations that have committed to back Canadian technology startups since a downturn hit the sector last fall.
Bell said Tuesday its venture capital unit would back companies that provide advanced technology solutions to help differentiate its 5G and fibre networks. It will focus on companies specializing in network security, internet-of-things, robotics, telematics, clean technology, augmented and virtual reality and the metaverse. The unit is starting with 11 investments including some made by Bell years ago.
The telecom giant has tapped senior vice-president of corporate strategy and treasurer, Curtis Millen, a former investment banker, to lead the unit along with three colleagues. He said in an interview “this is really an extension of capital allocation decisions” previously made by the corporate strategy and M&A group to build, buy or partner with companies.
Now Bell will also invest in companies ranging from startups that haven’t taken products to market to those with established demand and millions in revenues. He said Bell Ventures would typically invest $5 million to $15-million per company, and could lead financing rounds or join syndicates as an investor. Final investment decisions will be made by CEO Mirko Bibic. Unlike some corporate venture funds, Bell isn’t just backing companies it hopes to someday own outright.