Germany-based automotive manufacturer Porsche has invested an eight-figure sum in two Israel-based venture capital funds and plans to also open an innovation office in the country.
Porsche’s first commitment was to Magma Venture Partners, which was established in 1999 and which focuses on the information and communication technology space, including artificial intelligence (AI) and automotive technology.
The second investment went to Grove Ventures, a $100m VC fund that concentrates on early-stage investments in AI, cloud technology and the internet of things.
Porsche, which established a dedicated technology investment subsidiary called Porsche Digital in June 2016, intends to make further investments in both startups and other VC funds.
The firm is also setting up a dedicated centre in Tel Aviv, Israel, to help guarantee better access to technology trends and talent.
Lutz Meschke, deputy chairman of Porsche’s board, said: “Israel is a key market for IT experts and engineers. It has more startups per capita than any other country in the world.
“This talent and technological know-how coupled with the great expertise offered by our employees creates the ideal breeding ground for future business models.”