LG Electronics (LG) has committed an investment of $10 million in startups specializing in artificial intelligence (AI) and deep tech.
LG is a key limited partner in SBVA’s $130 million Alpha Intelligence Fund (AIF). SBVA will be selecting startups with high growth potential in AI, deep tech and robotics.
Through this investment, LG aims to expand cooperation with innovative startups and continue efforts to secure future technologies, ultimately seeking qualitative growth.
The aim of LG is 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.
LG in AI
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 $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 startups with innovative ideas and support their commercialization. LG NOVA is particularly focused on building sustainable growth and nurturing systems for future innovative industries such as digital healthcare, clean tech and AI.
“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,” said Eugene Yoo, vice president and leader of the Open Innovation Task at LG.
“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,” said SBVA CEO JP Lee.
SBVA
SBVA, established as SoftBank Ventures Asia under the SoftBank Group, was acquired last year by The Edgeof, an investment company led by Taizo Son, chairman of the global investment firm Mistletoe, and became independent.
SBVA manages assets of approximately $2 billion AUM and has offices in San Francisco, Israel, Singapore and Seoul. It is investing in over 100 companies. SBVA plans to conduct a second closing within the year to increase the size of the AIF.
