Porsche is planning to launch six startups by the end of 2025 through a partnership with US-based venture builder UP.Labs. The Germany-based carmaker is investing an eight-digit sum into the project.
The startups will operate in areas related to Porsche’s core activities, such as predictive maintenance technology or products which can boost transparency in the supply chain.
Formed by venture capital firm UP.Partners, UP.Labs co-develops startups with strategic partners, with Porsche the first to come on board. It will invest in them through a $250m fund backed by corporates Alaska Air, Toyota, Standard Industries, Hillwood and OSM Maritime.
Porsche will own a minority stake in each new business to emerge from the partnership and will have a three-year option to acquire them. The first two startups in the programme are expected to be unveiled by the end of this year.
The corporate is already a frequent participant in the corporate venturing space. Its Porsche Ventures subsidiary has a portfolio of more than 30 companies including electric vehicle technology producer Rimac and solar installation services provider 1Komma5°.
Lutz Meschke, deputy chairman of Porsche’s executive board, said: “We want to strengthen our existing, broad-based startup ecosystem with an external growth engine.
“Through UP.Labs, Porsche secures access to international talents and their know-how. The aim is to further enhance Porsche’s position in the current transformation phase of the automotive industry in the long term. Above all, we strive for new sources of innovation.”
UP.Labs founder and CEO John Kuolt and president Katelyn Foley were both formerly managing directors at consulting firm Boston Consulting Group’s venture building arm, BCG Digital Ventures.
