Sharikat Mubasher: LG Electronics has committed $10 million as a key limited partner in the newly established $130 million “Alpha Intelligence Fund (AIF)” by SBVA.
SBVA will curate a portfolio for AIF by selecting startups with high growth potential in AI, deep tech, and robotics. The firm aims to leverage its global networks and resources to support the growth and meaningful achievements of these startups, according to LG's press release.
For over 20 years, SBVA has been investing in global startups, enhancing its expertise in ICT technology, and strengthening its international network. By participating in the SBVA fund, LG plans to engage in the sharing of information on rapidly changing innovative technology trends and reflect these global market changes in its management strategies.
Through this investment, LG aims to expand cooperation with innovative startups and continue efforts to secure future technologies, ultimately seeking qualitative growth. The company plans to strengthen its networking with leading global companies and startups, discover additional opportunities for strategic investments, and secure technological capabilities for future businesses.
LG intends to accelerate its transformation into a “Smart Life Solutions” company by securing innovative technologies for its key growth engines, including platform-based service businesses, B2B businesses, and other new ventures. The company plans to continue efforts to secure future core technologies and expand its business areas beyond the home to business spaces, mobility, and more.
Previously, in July, LG acquired an 80 percent stake in Athom, a smart home platform company headquartered in Enschede, Netherlands, and signed a contract to acquire the remaining 20 percent within the next three years. In March, LG invested USD 60 million in Bear Robotics – an AI-based autonomous service robot startup headquartered in Redwood City, Silicon Valley, USA – through a new stock acquisition agreement to acquire a stake in Bear Robotics.
In addition, through LG NOVA – the company’s Silicon Valley-based innovation center – LG has been conducting annual contests since 2021 to discover and nurture startups with innovative ideas and support their commercialization, thereby seeking new business opportunities. LG NOVA is particularly focused on building sustainable growth and nurturing systems for future innovative industries such as digital healthcare, clean tech, and AI.
Eugene Yoo, vice president and leader of the Open Innovation Task at LG, said: “By participating in the AIF, we aim to secure AI capabilities through active open innovation activities and strengthen our position within the AI value chain. We plan to discover and collaborate with capable startups to explore future business opportunities.”
JP Lee, SBVA CEO said: “We will continue to make investments that accelerate technological innovation, leveraging our differentiated technical expertise, global network, and investment experience. We plan to maximize the growth potential of these companies by supporting the establishment of joint ventures with startups and major investors, and by promoting collaborative business projects.”