Renault-Nissan-Mitsubishi launches venture capital fund to invest up to $1 billion over five years
Renault-Nissan-Mitsubishi announced at CES 2018 the launch of Alliance Ventures, a new corporate venture capital fund that plans to invest up to $1 billion to support open innovation over the next five years.
In its first year, the fund expects to invest up to $200 million in startups and open innovation partnerships with technology entrepreneurs focused on new mobility, including vehicle electrification, autonomous systems, connectivity, and artificial intelligence.
Carlos Ghosn, Chairman and CEO of Renault-Nissan-Mitsubishi, said, “Our open innovation approach will allow us to invest and collaborate with start-up companies and technology entrepreneurs, who will benefit from the global scale of the Alliance. This new fund reflects the collaborative spirit and entrepreneurial mind-set at the heart of the Alliance.”
The company says its new fund is unique because it offers potential partners access to the global scale and scope of Renault-Nissan-Mitsubishi. Alliance Ventures will invest in startups to bring new technologies and businesses to the alliance while ensuring a fair financial return. The fund will reportedly make strategic investments at all startup stages and will incubate both new automotive entrepreneurs and forge new partnerships.
The first deal by Alliance Ventures will be a strategic investment in Ionic Materials, a US-based company that is developing solid-state cobalt-free battery materials. The equity acquisition coincides with the execution of a joint-development agreement with the alliance for the purpose of R&D cooperation. Ionic, based in Massachusetts, is the developer of a solid polymer electrolyte that enables improved performance and cost effectiveness of high-energy density batteries for automotive and multiple other applications.
Alliance Ventures will be led by François Dossa and is expected to be co-located in Silicon Valley, Paris, Yokohama, and Beijing, close to the technology and research centers of the alliance member companies, as well as to areas with strong innovation ecosystems.
Renault (40%), Nissan (40%), and Mitsubishi Motors (20%) will jointly fund the entity, which will have a dedicated investment committee to make investment decisions and monitor their performance.
“This investment initiative is designed to attract the world’s most promising automotive-technology start-ups to the Alliance,” said Ghosn.
As part of the Alliance 2022 strategic plan, Renault-Nissan-Mitsubishi is forecasting that the combined revenues of its member companies will reach $240 billion and that annual unit sales will exceed 14 million by the end of 2022.
For more information about Alliance Ventures and to submit investment proposals, go to https://www.alliance-2022.com/venture-about-us/.