Volvo Cars launches investment fund aimed at technology start-ups
Volvo Cars, the premium car maker, has launched a new investment fund aimed at investing in high potential technology start-ups around the globe.
The aim of the Volvo Cars Tech Fund is to invest in strategic technology trends that are transforming the industry, such as artificial intelligence, electrification, autonomous driving and digital mobility services.
The first strategic investment as part of the Tech Fund is a seed round investment into a California-based technology firm developing advanced sensors, underlining Volvo Cars’ growing presence in the technology hub of Silicon Valley.
Companies will benefit in a number of ways from participation by the Volvo Cars Tech Fund. Apart from the association with one of the world’s leading premium car makers, start-ups may gain the ability to validate their technologies and accelerate the pace of achieving product market fit.
Moreover, start-ups may have the opportunity to benefit from Volvo Cars’ unique access to the Chinese car market, its largest, as well as potential access to Volvo Cars’ global network of automotive and technology partners.
Zaki Fasihuddin, currently Vice President of Strategic Partnerships in the Volvo Cars Silicon Valley Technology Center, has been appointed CEO of the Volvo Cars Tech Fund.
“We seek to invest in companies that can provide us with strategic access to new technologies, capabilities and talent,” said Zaki Fasihuddin. “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.”
“We work closely with promising technologies and when we see value creation potential for us as a user, we can now also invest to help accelerate the venture,” said Mats Moberg, Board Member for the Tech Fund and Vice President within R&D at Volvo Cars.
The launch of the Volvo Cars Tech Fund is part of a continued push for innovation by Volvo Cars and accelerates the company’s digital transformation. Last year Volvo Cars established a digital organisation in Silicon Valley, providing an additional centre of gravity for the company’s development of technology and services.
In the fall of 2017 Volvo Cars also acquired the assets and key personnel of Luxe, a US based premium valet and concierge service. This acquisition provided a major boost to Volvo Cars’ development of digital services.
For more information and contact details, please visit: https://group.volvocars.com/company/innovation/volvo-cars-tech-fund or follow the tech fund on twitter.
Volvo Car Group in 2017
For the 2017 financial year, Volvo Car Group recorded an operating profit of 14,061 MSEK (11,014 MSEK in 2016). Revenue over the period amounted to 210,912 MSEK (180,902 MSEK). For the full year 2017, global sales reached a record 571,577 cars, an increase of 7.0 per cent versus 2016. The results underline the comprehensive transformation of Volvo Cars’ finances and operations in recent years, positioning the company for its next growth phase.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 571,577 cars in 2017 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
In 2017, Volvo Cars employed on average approximately 38,000 (30,400) full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).