...necessarily the all and end all. "ROI is just one of three [equally weighted] criteria we have for investing in a start-up," says Dr Dietrich Ulmer, CEO of Siemens Acceleration in Communications (SAC). "The other two are 'market grooming' and 'market presence'."

One market that Dr Ulmer wants to 'groom' is mobile data. "We're looking for companies that can drive [traffic growth]--either through technology or applications--which would then increase demand for infrastructure kit. That not only helps us, but other vendors as well."

As for 'market presence', this is a notion alien to the traditional VC. "We view every investment as a potential acquisition," says Dr Ulmen "We don't make an investment without a sign-off from one of the heads of a Siemens business unit. This makes absolute sense. If nobody has any interest [within Siemens] in the start-up then it's not going to get the support it needs."

SAC currently has 22 companies in its portfolio. It has yet to acquire any of its start-ups but is in the process of making its second market exit. "We're just waiting for the lawyers to come up with the contract," says Dr Ulmer (speaking in early March).

SAC's first...

NOTE: All illustrations and photos have been removed from this article.



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