Friday - Jun 23, 2017

Nokia has made US$100 million available for investing in interactive car technologies through their Connected Car Fund


Nokia has made US$100 million available for their Connected Car Fund

Nokia, on the lookout for diversification and growth after selling off their mobile phone based division to Microsoft for just over seven billion dollars, recently announced that they will be investing around $100 million of that sum to launch their Connected Car Fund.

Nokia’s Connected Car Fund will invest in companies involved in the development of technology around “intelligent vehicles”, under the wing of the Finnish giant’s mapping and location subsidiary, HERE.

Since Microsoft acquired Nokia’s mobile phone division, the company has kept themselves active operating their network equipment division, managing their considerable patent portfolio as well as muttering the development of HERE, which despite growing considerably since it was established in 2007, only accounts for less than ten percent of the company’s revenue.

Nokia are interested in seeing that percentage figure grow, and are putting their money where their mouth is by investing an initial $100 million in the Connected Car Fund, with the fund to be managed by the company’s venture capital arm, Nokia Growth Partners, bringing the total venture capital projects currently being managed on Nokia’s behalf to more than $700 million.

Plans are reportedly in place for the Connected Car Fund to invest in companies in the U.S., India, China and Europe, which Nokia Growth Partners anticipate seeing “a whole new class of services that keep drivers safe and connected,” by the fund’s international partners,

According to Rajeev Suri, Nokia’s recently appointed as CEO for the parent company, the connected car is a significant growth opportunity, with vehicles becoming a new platform for technology adoption very similar to phones or tablets.

Paul Asel, a partner at Nokia Growth Partners, confirmed the company’s satisfaction at deepen the fund’s collaboration with HERE through the Connected Car fund helping them to invest in innovative companies “ who are driving the future of the auto ecosystem, local services and personal mobility.”

In response, Michael Halbherr, CEO of HERE emphasised that the establishment of the Connected Car fund underscores that connectivity technology is rapidly reshaping what is possible in the car environment. “We believe that connected cars equipped with precise location awareness and sensor data can become powerful devices capable of helping drivers make sense of the world around them. “ Summed up Halbherr,

HERE plan to extend their network initially to four out of the five in-car navigation systems in North America and Europe, with a client base including BMW, Garmin, Toyota and Yahoo.

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