GE Ventures, the corporate venturing division of US-based industrial and power technology producer General Electric (GE), is seeking a buyer for its portfolio of more than 100 startups, CNBC reported yesterday.
The revelation follows reports in January 2019 that GE Ventures could be spun out, but the corporate has ostensibly since shifted strategy. Investment bank Lazard has been hired to handle discussions with interested parties.
The unit intends to sell the entire portfolio to a single buyer and hopes to find new positions for its partners. That portfolio includes stakes in dynamic glass producer View and 3D printing technology developers Carbon and Desktop Metal, each of which are valued at more than $1bn.
GE Ventures was established in 2013 to succeed GE Capital – which continues to operate as a financial services provider – and a series of separate funds focused on distinct sectors, such as energy and healthcare.
The unit had a mandate to invest $150m a year and has been led by chief executive Sue Siegel since inception. Siegel has since also been named chief innovation officer of GE.
GE Ventures has suffered from a series of high-profile departures over the past year, including Lisa Suennen, Noah Lewis, Jessica Zeaske and most recently Alex Tepper.
GE itself is in the midst of trying to turn around its business, which had $110bn of debt on its books as of March this year. Its share price has dropped 23% over the past year and closed at just $10.33 yesterday, down from around $30 in 2016 and a peak of around $60 in 2000.
Adding to the corporate’s woes is an investigation by the US Securities and Exchange Commission and Department of Justice into its accounting practices.
Megan Newhouse, a spokeswoman for GE, said: “During this time of transformation for GE, we are evaluating strategic options for GE Ventures to continue delivering returns for our shareholders and partners.
“While we cannot comment specifically on that process, we remain committed to supporting our portfolio companies, business units and partnering with the entrepreneurial ecosystem.”
