Samsung’s $150M NEXT Fund: Fueling the Future of Emerging Tech Startups
Samsung has long been a powerhouse in corporate venture capital, ranking among the most active corporate-backed venture firms in 2016. In 2017, the tech giant doubled down on its commitment to innovation by launching Samsung NEXT, a bold $150 million fund dedicated to early-stage startups in emerging technologies.
A New Approach to Venture Capital
Samsung NEXT represents a strategic shift in the company’s investment philosophy. As Christina Bechhold, Principal at Samsung NEXT Ventures, explained in an exclusive interview with VentureBeat:
“Our vision has always been about early stage. We started with an accelerator for ideation but have evolved to participate in full seed rounds. We’re designed to move faster than traditional corporate venture capital.”
The fund operates similarly to other major corporate venture arms like GV (Google Ventures) and Intel Capital, but with one key differentiator: speed. With Samsung as its sole limited partner, NEXT can make agile investment decisions to capitalize on cutting-edge opportunities.
Two Pillars of Innovation
Samsung NEXT consolidates the company’s startup initiatives under one umbrella:
- Samsung NEXT Start: The accelerator program focused on early-stage ideation
- NEXT Ventures: The VC arm investing in seed-stage companies
While Samsung maintains its existing Ventures arm for later-stage investments and the $100M Catalyst Fund for semiconductor businesses, NEXT represents a fresh approach to discovering disruptive technologies.
Focus Areas: Where Samsung is Placing Its Bets
Samsung NEXT targets four key technological frontiers:
1. Augmented Reality (AR)
Bechhold sees AR as potentially bigger than VR: “How do you make it easier to build and distribute AR content beyond what Pokémon Go demonstrated?”
2. Internet of Things (IoT)
Building on its SmartThings acquisition, Samsung is expanding into connected cars and homes, aiming to create seamless consumer experiences.
3. Artificial Intelligence (AI)
Following the Viv Labs acquisition, Samsung is exploring AI applications that enhance device experiences across multiple verticals.
4. Data Analytics
Focusing on B2B2C opportunities to transform raw data into actionable insights for businesses and consumers.
The Samsung Advantage: More Than Just Funding
Unlike traditional corporate investors, Samsung NEXT offers:
- Strategic partnerships without restrictive exclusivity clauses
- Access to Samsung’s vast resources (mobile, semiconductor, appliance, and TV divisions)
- Insider knowledge of future tech roadmaps
- Global reach with offices in San Francisco, New York, Tel Aviv, and Europe (Asian expansion under consideration)
Bechhold emphasizes: “We’re thinking 3-10 years ahead to identify trends that will transform user experiences. Our portfolio companies get what they need, whether that’s VR headsets or deep R&D integration.”
Recent Investments Show Diverse Portfolio
In its first wave, Samsung NEXT backed 10 promising startups including:
- Converge Industries
- Dashbot
- Entry Point VR
- Filament
- Intezer
- LiquidSky
- Otto Radio
- 2Sens
- SafeDK
- Virtru
This diverse selection demonstrates Samsung’s commitment to finding innovation across multiple tech sectors.
The Future of Corporate Venture Capital
Samsung NEXT represents a new model for corporate investment—one that combines the agility of traditional VC with the resources of a global tech leader. As Bechhold notes: “We have full autonomy to identify and nurture the technologies that will shape tomorrow’s digital landscape.”
Article updated April 2017 to clarify Samsung NEXT’s complementary role to other Samsung initiatives.
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