Sweden-based carmaker Volvo Cars has launched an investment fund of undisclosed size called Volvo Cars Tech Fund to back technologies that could potentially transform the automotive industry.
Volvo Cars Tech Fund will focus on technologies such as artificial intelligence, electrification, autonomous driving and digital mobility services. Volvo recently launched a digital hub in Silicon Valley to augment its technology and services development.
The fund will invest globally and has already participated in a seed round for an undisclosed US-based advanced sensor developer. In addition to cash, Volvo could offer participating startups assistance in validating their technologies and getting their products to market.
Volvo has already been active in corporate venturing, having invested since 1997 through Volvo Technology Transfer, the unit renamed Volvo Group Venture Capital in 2012. Its portfolio companies include driverless car software developer Peloton Technology.
The company has appointed Zaki Fasihuddin, currently vice-president of strategic partnerships in Volvo Cars Silicon Valley Technology Center, to head Volvo Cars Tech Fund as its chief executive.
Fasihuddin said: “We seek to invest in companies that can provide us with strategic access to new technologies, capabilities and talent.
“By supporting promising young firms at the forefront of technological development and providing them with both capital and strategic value, we aim to strengthen our leading role in the industry’s technological transformation.”