Telekom is expanding its venture capital operations to look for new business opportunities (Photo: Deutsche Telekom)

Deutsche Telekom plans to invest an additional 500 million euros in venture capital and new technologies in an effort to explore new business opportunities outside its core area of activities.

The German telecommunications group said it would launch a new company - Deutsche Telekom Capital Partners (DTCP) - with a specialist team of investment managers. These have approval to invest 500 million euros over the next five years.

The investment is in addition to a similar volume of investment planned by Telekom's existing T-Venture fund. This investment vehicle was founded in 1998 and has a portfolio of around 100 companies. The fund will be closed for further investments as new initiatives will be managed by DTCP.

DTCP, which will be one of the biggest European investment funds, will focus in particular on German startup companies. The unit "combines the expertise and strength of a large corporation with the agility and flexibility of a small investment company," Telekom CEO Tim Hoettges said in a press release.