ST Engineering sets up $204.4m venture capital unit

It also unveiled an open innovation lab.

ST Engineering has set up a corporate venture capital unit to invest in start-ups and early stage companies, offering not just funding but also access to the Group’s established business network and distribution channels.

The group has set aside US$150m ($204.4m) for the said unit through ST Engineering Ventures Pte. Ltd. This unit will scout for and invest in promising technology start-ups that are developing new technologies or creating innovative solutions complementary to the Group’s strategic capabilities in higher growth areas, such as in the areas of robotics and autonomous technology, data analytics and cyber security.

Scouted start-ups will be able to integrate into the Group’s ecosystems for broader business capabilities to compete globally as well as tap on the Group’s technological expertise. They will also be able to access the Group’s established business network and distribution channels.

To position the Group at the scene of these early inventors, ST Engineering will set up technology scouting offices in Singapore, Israel and in the US for a start, to cover Asia Pacific, Europe & Middle East and the Americas.

Meanwhile, the group is also offering individuals and start-ups the opportunity to see their ideas go to market through an Open Innovation Lab (Open Lab) that offers a unique collaboration platform with a dedicated applied engineering team, and access to advanced equipment.

These two initiatives will support how the group harnesses and synergises new technologies and ideas externally and internally to create greater long-term value and growth.