Titanium Ventures cracks $1bn revenue for portfolio companies

Telstra’s former VC arm, Titanium Ventures, says it has generated more than $1bn of revenue for its portfolio companies after developing a unique revenue acceleration platform.

Titanium Ventures’ team celebrates its 100th investment in New York, a milestone featured on the Nasdaq billboard in Times Square.

Telstra’s former venture capital arm, Titanium Ventures, says it has generated more than $1bn of revenue for its portfolio companies after developing a “unique revenue acceleration platform”.

The firm, which ditched its Telstra branding in June – six years after becoming an independent fund – says the platform is a combination of “market awareness initiatives, data science and digital enablement”.

Titanium Ventures managing director Matthew Koertge.

Managing partner Matthew Koertge said it provided direct sales opportunities as well as access to a global network of channel partners and technology buyers to help grow portfolio companies’ top line in existing and new markets.

“Titanium Ventures supports our portfolio companies with venture capital’s only Revenue Acceleration Platform. Our go-to-market experts collaborate with the company’s team to scale revenue fast,” he said.

“Our approach is sleeves-up and hands-on. We fight hard alongside our entrepreneurs to get dollars in the door, and more importantly, as today’s announcement shows, we deliver.”

Titanium Ventures has $1.35bn funds under management and has invested in 104 portfolio companies, among which there have been 13 IPOs and 18 unicorns. While it has had hits, including 42 cash-outs, which have returned almost $1bn to its investors, it has had some misses – it was a notable backer of collapsed crypto exchange FTX.

Telstra – which founded the fund 13 years ago – announced earlier this year that it was looking to offload its stake amid a $400m cost-cutting drive. Telstra has since announced a $450m bond issue at an interest rate 4.75 per cent and six-year maturity, and a €700m 12-year bond.

Telstra doesn’t disclose how much it has invested but in its latest annual report it said it had 62.5 per cent and 50 per cent stakes in Titanium Ventures’ funds II and III, which are both incorporated in tax-friendly Guernsey.

Its decision to sell out of Titanium Ventures was a turnaround; Titanium was the jewel in the crown under former chief executive Andy Penn, who said the fund was “a key part of our continued network and technology leadership”. His successor Vicki Brady, who announced in May the telco would cut 2800 jobs as it struggles to compete with bigger tech companies, has taken a more austere approach.

Titanium Ventures operating partner Gurpreet Ghuliani.

Titanium’s Melbourne-based operating partner Gurpreet Ghuliani said the firm’s $1bn-plus revenue milestone was testament to the firm’s strategy.

“This is a significant achievement as it supports our differentiated venture model to drive revenue growth for our portfolio companies and returns for our LPs,” he said.

“Our approach and reach give our entrepreneurs confidence to grow across regional markets … In support of our global approach, the $1bn of revenue has been generated across Asia-Pacific, US, Europe as well as the Middle East.

“Not only can we facilitate the delivery of innovation into a region and provide new revenue sources for ‘in-region’ channel players but also grow our companies that then support the local economy within region hires and spend.”

Titanium Ventures focuses on AI, cybersecurity and climate tech, with about half of its staff based in the US and the remainder in Australia.