Nokia Corporation (ADR) (NYSE:NOK), the Finnish telecom giant, has launched a venture fund worth USD 100 million for the purpose of investing in auto technology all over the world including India. The automobile market is growing very rapidly and holds huge potential for technological advancement for being smart and intelligent.
Nokia already enjoys a major presence in auto-electronics
Nokia Growth Partners or the NGP will manage the Connected Car Fund, which will work with HERE, a Nokia Corporation (ADR) (NYSE:NOK) division engaged in the provision of mapping and location services and products, for the development of an ecosystem around it. NGP would make huge investments in high potential businesses in the U.S., India, China and Europe.
“The fund will identify and invest in companies whose innovations will be important for a world of connected and intelligent vehicles,” Nokia said in a statement, and added that the HERE division of Nokia provides the connected vehicles with the location intelligence and is a strong player in the automotive industry. Navteq division of Nokia supplies navigation and mapping data for the vehicles that are enabled with sat-nav systems. Through this division, Nokia has quite an important presence in auto-electronics.
Growing technological advances
With the growing technological advances, it has now become possible to manufacture vehicles that are safer, cleaner, increasingly connected, intelligent and more affordable. The new developments are because of the strong surge for innovation over the past few years, and just like the phones and tablets, the vehicles are becoming the new platform for the adoption of technology as expressed by Paul Asel, Managing Partner at Nokia Growth Partners.
“We are excited to deepen our collaboration with HERE through the Connected Car fund to invest in companies that are driving the future of the auto ecosystem, local services and personal mobility,” Asel added.
The new fund will bring up the total managements by NGP for Nokia Corporation (ADR) (NYSE:NOK) up to USD 700 million. Rocket Fuel, Heptagon and UCweb are few technology companies into which NGP has invested in the past and these companies have been successful at making an impact globally in whichever industry they operate. In the past decade, three funds have been managed by NGP on Nokia Corporation (ADR) (NYSE:NOK)’s behalf and Connected Car fund is the fourth.