Germany-based e-commerce group Rocket Internet is preparing to raise between $1bn and $2bn for a corporate venturing fund that will predominantly invest in the US, Bloomberg reported yesterday.
Rocket Internet will be the lead partner in the find but is seeking additional investors to contribute capital, with the fund expected to be closed as soon as December this year, a person familiar with the situation told Bloomberg.
Founded in 2007, Rocket Internet operates an incubation and venture capital model that involves both building and investing in e-commerce platforms and online service providers, usually in Europe or in emerging markets where business models already successful elsewhere can be replicated.
The vehicle will represent Rocket Internet’s first significant foray into the US and will also look to invest more in artificial intelligence-influenced companies.
The exploration of the fund comes after the company reported a consolidated profit of €75m ($88m) from revenues of about €10bn for the first quarter of 2018.
Although Rocket Internet has not disclosed contributions from any particular investors for the newest fund, its past backers include retailer Tengelmann, conglomerate Access Industries, telecoms firm PLDT, internet company United Internet and investment firm Kinnevik.
The company also has strong links in place with Global Founders Capital, the venture capital firm launched by Rocket Internet co-founders the Samwer brothers.