Volvo Cars launches investment fund aimed at technology start-ups

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. Volvo says the companies will benefit in a number of ways from participation in the Tech Fund. Apart from the association with a huge car maker, start-ups may gain the ability to validate their technologies and accelerate the pace of achieving product market fit. They may have the opportunity to benefit from Volvo Cars’ access to the Chinese car market as well as potential access the company's 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.