Chevron Press Release - Chevron Creates Venture Capital Unit To Invest In Emerging Technologies
SAN FRANCISCO, June 30, 1999 -- Chevron today announced it has created a new subsidiary, Chevron Technology Ventures LLC. Over the next five years, the company will invest in a substantial portfolio of technology start-up companies whose innovations could significantly benefit Chevron's existing businesses and lead to new growth opportunities.
With this new unit, Chevron becomes the only petroleum company with a venture capital group established to make equity investments early in new technologies.
Chevron Technology Ventures will work with select venture capital firms and also make independent investments in three primary areas: information technology, biotechnology and materials science.
Investments will be made in companies that provide the potential for outstanding financial returns, and whose technologies can be applied or adapted for the energy industry. These companies should also provide opportunities for corporate growth.
"The energy industry has always been technology-intensive, which has led to new markets for emerging technologies like high-performance computing and new materials," said Don Paul, Chevron Corp. vice president of technology and environmental affairs.
"Now, more than ever, we're relying on technology to reduce the cost of finding oil and gas, to improve the efficiency of operations and the quality of products, and to protect the environment."
"By investing early in these dynamic companies, we can gain access to new technologies that are likely to play a vital role in transforming the petroleum industry..
Citing several ways this venture will benefit both Chevron and the emerging technology companies in which it invests, Paul said the new Chevron company will:
- Create opportunities for expanded equity positions in new technology-based growth businesses;
- Facilitate the development of new technologies in ways that would open the petroleum industry market for them, and potentially be a lead customer for the technologies;
- As appropriate, provide technical and scientific expertise to companies to help develop technologies and their application to targeted markets.
Chevron Technology Ventures has already made initial investments with ARCH Venture Partners, which has a successful 12-year record of investing in seed and early stage technology companies, and with Ampersand Ventures, which has a record of top tier investment performance in specialty materials businesses.
Updated: June 1999