General Electric and Siemens AG compete with each other in key sectors including healthcare, industrials and energy. And in recent years, the two firms have been investing heavily in growing private companies across their competing areas of interest.
With new technologies and markets including the Internet of Things and big data now impacting, disrupting and creating opportunity for their core businesses, we wanted to analyze some high-level trends on where the two conglomerates have been investing over the past four years.
General Electric Investment Trends
In January, GE restructured its health, energy, software and manufacturing venture investment groups into its GE Ventures unit with a $150M annual fund commitment. And 2013 has been a busy year for GE which has participated in 17 deals representing $535M in funding.
Peeling back GE’s investments since 2010 by sector highlights that nearly 60% of its deals have gone to either healthcare or energy/utilities companies (which both saw a dropoff deals and dollars by corporate venture investors in Q3’13). While 14% of GE’s investments were in the software space, it’s interesting to note that a number of those deals went to startups using big data and data analytics within healthcare and energy management including Ayasdi and Predixion Software.
GE has also made a concerted effort on the connected devices front, announcing a number of projects related to the ‘Industrial Internet’ merging networks and sensors with industrial equipment and machinery. And GE has also begun making investments in its Industrial Internet push, putting $30M toward Quirky’s $79M Series D round to design and build out gadgets for the connected home.
Since 2010, the majority of GE’s investments (80%+) have gone to U.S. companies. And within the U.S., GE’s investments concentrate heavily on energy and healthcare firms in Silicon Valley. Among GE’s most recent Silicon Valley investments include Stem, Sungevity and smart window maker View.
Siemens Investment Trends
Compared to GE, Siemens has made fewer venture investments and has disclosed just a handful of deals in 2013 YTD. On a sequential basis, Siemens is on track for its lowest deal and funding participation in 2013 in four years.
Distinguishing by sector reveals that Siemens has made a concerted push in software and electronics investments. More recently, Siemens has backed software delivery automation firm Electric Cloud and Siemens spinout infrared sensor startup Pyreos. The healthcare and energy sectors make up 35% of the firm’s investments since 2010.
Compared to GE, Germany-based Siemens has invested more heavily in international startups. 32% of Siemens’ venture deals have gone to firms headquartered in Germany, Scotland and the UK.
Within the U.S., Siemens’ investment portfolio is less heavily concentrated than GE on California-based startups, which take 37% of U.S. investments. 17% of Siemens’ U.S. deals go to Colorado and Ohio-based firms, while Mass takes 8% of deals. Cali-based companies backed by Siemens include energy data analytics firm BuildingIQ and electric car charging station network Chargepoint (fka Coulomb Technologies).
All of Siemens and GE’s private company financing and M&A transactions are available on the CB Insights Venture Capital Database. Sign up for free below.