Smartphone manufacturer Nokia has provided $400m in capital for the latest fund closed by NGP Capital, the US-based venture capital firm spun off by the corporate.
NGP Capital was originally formed in 2005 as a direct subsidiary of Nokia named Nokia Growth Partners but rebranded in 2017 and now has $1.6bn in assets under management having closed five funds.
The firm invests in growth-stage developers of advanced technology in areas such as edge cloud software, cybersecurity, digital transformation and industrial digitisation.
Fund V’s close was announced together with the promotion of Bo Ilsoe from partner to managing partner. He said: “Nokia has been an amazing partner for us over 17 years and we are grateful for the continued support.”
NGP Capital utilises an artificial intelligence tool called Q which analyses more than 2 million companies worldwide, analysing some 700 growth parameters for each in order to help select funding targets. It invests globally, 38% of its portfolio being based in the US, 35% in Asia and 27% in Europe.
“Target investments will be evaluated on product market fit, unit economics and technology leadership,” Ilsoe said. “Companies with advantages obtained through applying artificial intelligence, machine learning, low-code, cloud-native, blockchain technologies and more will be prioritised.”
Although it operates independently, NGP Capital’s focus is aligned with Nokia’s 5G strategy and in practice it helps the corporate more into new technological areas. Over 40% of its portfolio have worked with Nokia in some capacity.
“We back entrepreneurs with a bold vision, who offer something unique and have an ambition to move the needle in their respective industries,” Ilsoe said. “It is the best way to make financially smart investment decisions.
“When we align these companies with insights from and access to Nokia, we believe it creates a winning combination. We believe that financially successful growth companies are in the best position to support Nokia strategically.”
NGP Capital has 42 companies in its active portfolio but its exits have included Xiaomi, the China-headquartered consumer electronics producer with a market cap currently hovering around the $420bn mark, and UK-based food delivery service Deliveroo, which floated in a $2.07bn initial public offering in March 2021.
Image courtesy of Nokia.
