Mobile device manufacturer Nokia made the first investment from its $100m Connected Car Fund yesterday, co-leading a $8m series B round for US-based connected car service Zubie.
Automotive parts supplier Magna International co-led the round, which also featured Castrol innoVentures, the strategic investment arm of lubricants producer Castrol, as well as communications company Comporium and venture capital firm OpenAir Equity Partners.
Zubie is the creator of the Zubie Key, a hardware dongle that plugs into a diagnostic port under a car’s dashboard and analyses system functions to provide suggestions on car maintenance, driving habits and methods of lowering driving costs.
The funding will provide cash to support product growth. Nokia, which invested through corporate venturing fund Nokia Growth Partners (NGP), could also strike a deal to incorporate data from its mapping subsidiary, HERE, in Zubie’s product.
Paul Asel, a partner at NGP, will now join Zubie’s board of directors.
The Connected Car Fund, formed in May this year, invests in companies developing technology for connected and intelligent vehicles.
Zubie was founded in 2012 as GreenLight Connectivity Solutions. It raised $18m in series A funding in 2013 from Castrol InnoVentures, Comporium and OpenAir.