BMW i Ventures, the independent venture capital arm of BMW Group, has launched its third fund with $300 million in capital, according to TechCrunch. Since becoming independent in 2016, the firm’s total assets under management have grown to $1.1 billion.
The new fund will invest in early-stage to Series B startups in North America and Europe. It will focus on agentic AI, physical AI applied to robotics and autonomous systems, industrial software, advanced materials, and manufacturing and supply chain technologies.
BMW i Ventures has invested in more than 75 startups, such as ChargePoint, Tekion, Xometry, CelLink, GaN Systems, Fox Robotics, Boston Metal, Bcomp, and Phoenix Tailings. Recent Fund II investments that fit the AI focus include Athenic AI for data analysis and business intelligence, Qualytics for automated data quality, Estes Energy Solutions for battery platforms, and Via Science for data protection.
The firm has made more than 35 investments under Fund II, and several recent AI-focused deals have not yet been announced. For Fund III, the main challenge is to find AI startups with long-term advantages, not just those following the latest trends.
Competition among corporate venture arms in automotive AI has intensified, with Porsche Ventures, Toyota Ventures, Stellantis Ventures, and Ford’s Latitude also investing in the space.
BMW i Ventures gives its portfolio companies some advantages. They can leverage the BMW Group’s engineering network, test technology in BMW production facilities, and begin working with BMW engineers, even without a commercial contract.
The new fund has not yet announced its first investments.
