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Fund III targets physical and agentic AI, industrial software, advanced materials, and circularity-focused innovations across North America and Europe
BMW i Ventures, the corporate capital venture arm of the BMW Group, has launched its third fund, committing $300 million to the premise that AI will fundamentally reshape how the automotive industry operates and creates value across its ecosystem. Fully backed by the Germany-based automotive group, Fund III will focus on physical AI, agentic AI, industrial software, manufacturing technologies, supply chain technologies and advanced materials. It will invest across North America and Europe from seed through Series B, bringing BMW i Ventures' total capital under management to $1.1 billion.
“With BMW i Ventures, we are investing in technologies that will shape the future of our industry. Our corporate venture capital activities play a key role in our innovation strategy, complementing our internal R&D and building strategic partnerships across the entire automotive value chain,” said Oliver Zipse, CEO of BMW Group. Zipse said that the launch of the third fund comes at a time when AI has shown its potential to transform products, operations and value chains, and that through BMW i Ventures and Fund III, the company can anticipate shifts early and act quickly and efficiently on innovations.
BMW i Ventures will focus on agentic AI and AI-native enterprise applications that automate complex workflows in industrial environments, as well as physical AI that enables robots and autonomous machines to perceive, plan and act safely in the real world. As AI delivers improvements in productivity, decision-making and execution speed, the fund will support innovations across the automotive value chain in automation, engineering and manufacturing, ranging from specific production optimization to platforms for connected and intelligent operations across industrial networks.
Circularity remains a core investment pillar for BMW i Ventures, supporting industrial resilience and reducing exposure to constrained or geopolitically sensitive supply chains for critical materials. Fund III will continue to back next-generation materials innovations and technologies that advance circular industrial systems in product design, manufacturing processes and supply chains.
This includes technologies for recycling and recovery of critical materials, circular manufacturing processes, and new materials that combine performance improvements with more efficient resource use.
Through BMW i Ventures, the BMW Group gains early access to strategically relevant innovations and insights into emerging trends and disruptions across global technology ecosystems, supporting the BMW Group's long-term competitiveness and integration of new technologies into future vehicles, production systems and digital services.
Since its establishment in 2011, BMW i Ventures has invested in more than 90 companies and realized more than 30 exits. BMW i Ventures' first fund has already returned significant capital with positive Distributed to Paid-In capital (DPI), and Fund II is nearing the end of its initial investment period with over 30 portfolio companies. Fund III builds on the first two funds and is structured to lead investment rounds while maintaining its footprint in the US and Europe.
The new fund has the capacity to back AI-native companies as early as the seed stage, reflecting the speed at which AI-first companies can now be built and scaled. Operating with the independence and speed of a traditional venture firm, BMW i Ventures is structured to identify and back emerging technologies well before they reach the mainstream.
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