Philip Morris International plans to dedicate a further $200 million to minority investments in early and growth-stage companies through PM Equity Partner (PMEP), PMI’s corporate venture capital arm. This allocation follows a 2016 commitment of $150 million that PMEP has since fully invested and is intended to support PMI’s smoke-free and beyond nicotine ambitions.
With this latest round of funding, PMI will leverage its strengths to help investee companies translate innovation into commercial success. Developed through PMI’s journey to replace cigarettes with smoke-free alternatives, the company’s best-in-class capabilities include advanced life science expertise, preclinical and clinical research, and aerosolization.
PMEP is focusing its investment activities on four distinct technology segments: life science innovations, such as inhaled therapeutics and computational research methodologies; industrial technologies like industrial robotics and automation, the internet of things and technology-based process optimization; product technologies, particularly those that relate to inhalation and aerosolization, chemical formulation and bio-authentication; and consumer engagement technologies, such as user identification and age authentication, innovative customer care and experience management.
“PMI’s scientific and technological leadership has enabled us to reinvent our company in our pursuit to ‘unsmoke’ the world,” said PMI Chief Financial Officer Emmanuel Babeau in a statement. “We are dedicating further funds to our venture capital arm at a moment when we are in an even stronger position to leverage our expertise to support the development and commercialization of cutting-edge technologies to the benefit of both PMI and investee companies.”
“PMEP is looking to invest in companies that can help PMI accelerate and further sophisticate our transformation while we support them through our industry-leading expertise to mature their technologies and businesses,” said Alexander Stoeckel, head of PMEP. “We see this exchange as a win-win for PMI, the companies we invest in and society.”