Volvo Launches Investment Unit for Tech Startups

Volvo Car Corp. has formed a fund that will invest in high-potential technology startups worldwide.

The new group will focus on companies working on artificial intelligence, electrification, autonomous driving and digital mobility services. Zaki Fasihuddin, currently vice president of strategic partnerships at the car’s Silicon Valley tech center, will head the Volvo Cars Tech Fund.

Volvo says it will provide technical assistance to the companies in which it invests, including coordinating access to other tech partners. The carmaker also will help the startups validate products and accelerate commercialization efforts.

Another key focus will be to help the startups gain access to China’s automotive industry. Volvo is owned by China’s Geely Holding Group Co.

The fund’s first official deal was to provide seed funding for an unnamed California-based company that is developing advanced sensors. The fund also is targeting companies that specialize in mobility apps and services, distributed machine learning/artificial intelligence and storage, safety and security, networking and connectivity platforms, fusion and HD mapping, sensors and drive computing.