France-based aerospace and defence equipment producer Safran has provided a further €30m ($33.5m) for its corporate venturing fund, taking its capital under management to approximately $89.1m, Les Echos has reported.
Safran Corporate Ventures launched in 2015 with $55.6m of capital set to be invested in European and North American startups in the aerospace, defence and security sectors over an intended period of three years.
The unit has invested in 10 companies to date, using up slightly less than its original capital allocation. The total figure consists both of initial investments and money set aside for follow-on funding.
The only exit to be achieved by Safran Corporate Ventures to date came in 2016 when its inaugural portfolio company, microelectromechanical systems developer Tronics Microsystems, was acquired by electronics company TDK Corporation for $55m.
The unit had become an investor in Tronics during the latter’s initial public offering in 2015. Its remaining portfolio companies include optical fibre component manufacturer CaiLabs and computer microprocessor developer Kalray.
The additional capital will enable Safran Corporate Ventures to invest some $16.8m per year, providing up to $5.6m per portfolio company and maintaining its focus on early-stage businesses in Europe and North America.
The unit will also undertake indirect investments and has already committed an unspecified amount to an unnamed fund raised by venture capital firm Btov Partners.
The fundraising effort follows Safran Corporate Ventures’ appointment of Florent Illat, formerly a senior venture partner at investment firm Quadrille Capital, as its new head in June 2019, replacing Grégoire Aladjidi.
