VIDEO: SAP Ventures now has $1bn to invest – what should we expect?

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SAP Ventures now has $1bn in newly-available funding for technology companies around the world with “quite a number of investments” expected in Germany.

Palo Alto-based SAP Ventures is the investment arm of Germany’s SAP, maker of a wide range of enterprise software applications and employer of about 65,000 people around the world. It’s fully funded by its parent but – it says, firmly – wholly independent.

Up until now, SAP Ventures has worked out of two funds: SAP Ventures I, a $353m direct investment fund coming to the end of its investment period, and the Hana Real-Time Fund, which is primarily a “fund of funds” for early-stage venture capital firms.

Today, SAP Ventures announced a new $650m direct fund, SAP Ventures II, and the expansion of the Hana Real-Time Fund from $155m to $405m. The latter isn’t news, as those funds were raised in May 2013, but it does bring the total raised this year to $1bn.

What’s going to happen to all that cash?

SAP Ventures Fund II will typically invest between $5m and $20m in growth-stage technology companies. “We expect quite a number of investments in Germany,” SAP Ventures CEO and Managing Director Nino Marakovic explained in an interview in Berlin.

The Hana Real-Time Fund invests anywhere between $2m and $10m in other funds. It currently backs about 10 firms, including Ron Conway’s SV Angel in San Francisco, Magma Venture Partners in Tel Aviv, and Earlybird and Point Nine Capital in Berlin.

We asked Marakovic (right) and Earlybird partner Jason Whitmire (left) about how the two firms interact, how they view Berlin – and when to expect those elusive big exits.