Innovation & Job News

GM creates $100M venture capital subsidiary

Thursday, June 10, 2010

Related Tags

Investment, Transportation, Venture Capital, Wayne County

Detroit

Some big institutional wealth is tapping into Michigan's growing venture capital ecosystem.

General Motors has established a subsidiary called General Motors Ventures that will identify, develop and invest in tech start-ups. The $100 million fund will focus on the automotive and transportation sectors.

The entry of a major global corporation like GM could serve as a major boost to the local venture capital scene. Aside from the nine figures worth of investment capital, downtown Detroit's signature corporate citizen could become a more active player in acquiring emerging start-ups. That could lead to more successful serial entrepreneurs and job creation.

GM isn't the first major automotive industry player to enter the local venture capital game. Bill Ford Jr., chairman of Ford, helped found Fontinalis Partners last year. That firm has many of the same aims as GM's subsidiary.

Jon J. Lauckner, GM's vice president of Global Product Planning, will lead General Motors Ventures. His appointment takes effect in July.

Source: General Motors
Writer: Jon Zemke

Signup for Email Alerts