Sweden-based commercial vehicle manufacturer Volvo Group has established a presence in North America for its rebranded corporate venturing unit and is eyeing setting up in Asia.
The company, which has appointed a San Francisco-based executive, has renamed its corporate venturing unit Volvo Group Venture Capital from Volvo Technology Transfer, to reflect its broadened mandate. Jonas Landström is listed as the San Francisco point of contact.
This expanded strategy opens the group up to do “majority investments and acquisitions as a complement to minority investments”.
Volvo Group Venture Capital president Johan Carlsson said:“When I took over this portfolio almost two years ago I looked over the transactions, trying to identify which ones had been more successful and where we have not added leverage to businesses or good financial growth. In hindsight it became clear to us we are good investing when we can combine the capabilities of the group with a company that has a new product that is ready for market and ready to be scaled up. This makes for a good investment for ourselves and other investors. That is where our venture model works best.”
Carlsson added: “We leaned on this investigation and went fully towards that model. We also came to the realisation that everything good doesn’t happen in Sweden, so we have expand our reach into an international business, which led us to open an office in San Francisco.
“There are lot of things happening in the Bay Area right now affecting the industrial business model. The majority of growth in commercial vehicles, excavators and rollers also comes in Asia, so we are looking at how to engage our investment model over there.” Carlsson added he expected the Asian expansion to take place next year.
The group will take a board seat and collaborate closely with portfolio companies.