Some of the world’s largest tech companies manage sizable venture funds under their auspices.
But not every big company with capital to commit to venture has the reach and resources of Alphabet’s GV or Intel Capital.
That’s where Pegasus Tech Ventures comes into play. The San Jose, California-based firm recently announced that it is open for business, working with companies to outsource their venture investing needs. The firm says it offers large companies a novel approach to investing in emerging technologies through what it calls a Venture Capital-as-a-Service model.
The firm currently runs 23 funds, most of which have a single investor, including such large corporations as the gaming company SEGA and the computer maker ASUS.
Each of these funds is tailored to the needs and interests of the investing company.
Pegasus currently manages about $600 million in assets, General Partner and CEO Anis Uzzaman told VCJ. Fund sizes range from $20 million to $50 million, he said.
The firm has a team of 90 worldwide, including eight partners. One of the partners is the longtime Silicon Valley investor and entrepreneur Bill Reichert, who is also a managing director of Garage Technology Ventures.
Large corporations that invest out of their own VC funds generally do not have global reach and cannot help with business development, Uzzaman said. Pegasus regularly introduces its portfolio startups to its investing corporations, he explained.
The firm invests in Series A and sometimes Series B rounds, writing checks for about $5 million, Uzzaman said.
Many of Pegasus’ investing corporations are located in Asia, but there are several European and North American LPs as well, he said.
Since starting the firm in 2011, Pegasus has invested in 140 startups and realized 20 exits, Uzzaman said.