Friday, June 4, 2010
GM Gets Into Venture Capital
General Motors announced Friday morning that it has entered into the venture capital industry, and created its own transportation venture capital arm called General Motors Ventures, LLC. GM said the new unit will help it to "pursue innovative technology" and would also be a path to establish partnership with other venture capital companies. GM said General Motors Ventures will focus on identifying and developing innovative technologies in the automotive/transportation sector, and will be headed by Jon J. Lauckner, former GM of Global product Planning. GM said the fund will initially be funded with $100M, and is exploring equity investments in auto-related technologies and business models. It's unclear how GM's entry into the venture capital market will affect Southern California's myriad of auto-related startups, who have managed to garner a significant amount of venture capital from non-auto related venture firms in recent years.