Alliance Ventures open to startup partners
Autonomous vehicles are expected to be part of people’s lives at some point in the future. The question is how long it will take for that trend to hit the mainstream. Nissan Motors Co is taking the question seriously, opening itself to startups that want to join in its innovation.
Renault-Nissan-Mitsubishi recently launched Alliance Ventures, a new venture capital fund that plans to invest up to US$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 electric vehicles, autonomous systems connectivity and artificial intelligence.
“Obviously transportation is a big area and we cannot ignore the new ecosystem,” said Carlos Ghosn, chairman and chief executive of Renault-Nissan-Mitsubishi.
The open innovation approach will allow the alliance to invest and collaborate with startup companies and technology entrepreneurs that will benefit from the global scale of the alliance, he said.
“The new fund is unique because it offers potential partners access to the global scale and scope of Renault-Nissan-Mitsubishi, which sold more than 10 million vehicles in 2017 through 10 separate brands with a presence in all major automotive markets,” said Mr Ghosn.
Alliance Ventures aims to invest in startups while ensuring a fair financial return, making strategic investments at all startup stages to incubate both automotive entrepreneurs and forge new partnerships.
Its first deal is with Ionic Materials, a US-based company developing solidstate 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 pioneering solid polymer electrolyte that enables improved performance and cost effectiveness for highenergy density batteries for automotive and multiple other applications.
At the Consumer Electronics Show in Las Vegas last week, Mr Ghosn told startups they don’t need the cloud because the Alliance is developing a lot of functionality without the cloud to avoid cybersecurity problems.
“We see creative solutions to the cybersecurity traps and obstacles out there. Within the next 2-3 years, there will be a lot of technological solutions to cybersecurity problems”, he said.
“It’s very interesting to see some people are already thinking about the solutions before the problems happen. I’m confident we will find solutions, even those unrelated to cybersecurity.”
The Deloitte Center for Industry Insights reported it’s difficult to accurately determine the amount of money being invested in new technologies, but a recent study by the Brookings Institute estimates investment in the autonomous technology ecosystem to be at least $80 billion over the past three years.