BMW has long been collaborating with startups in its search for innovations. Now the Munich-based global corporation is massively increasing its venture fund.
The automotive industry is undergoing a transformation: Cars are becoming digital and connected, the electric car (likely) belongs to the future, and autonomous driving is no longer a utopia. In the wake of these radical changes, new competitors are entering the market. Automakers have responded by developing their own channels to bring innovations from the startup scene into their own companies.
For this purpose, BMW maintains its Startup Garage and turns innovative startups into suppliers. The Munich-based company also invests with its VC fund BMW i Ventures Since 2011, the fund has invested in 15 startups from New York City. The fund initially has a volume of $100 million.
Fivefold volume and move to the Valley
Now BMW is increasing its VC fund and wants to invest up to a half a billion euros invest in startups. BMW i Ventures is also relocating its headquarters to California Mountain View in Silicon Valley. Google and its parent company Alphabet are also based there.
"The mobility of the future and our industry will be determined by ever-accelerating technological change. Those who want to be successful must shape this change and have access to the best ideas."
says BMW board member Klaus Fröhlich. Board colleague Peter Schwarzenbauer explained:
"Innovations today increasingly come from the startup scene. Venturing allows us to tap into this potential at an early stage."
Schwarzenbauer also announced that he would expand his venture activities in Europe.
