Last month ZF established a company called Zukunft Venture GmbH that will invest in technology companies including start-ups, the Germany-based supplier said in a press release on Monday (17 October). Zukunft Venture is headquartered in Friedrichshafen, Germany.
Zukunft Venture will identify and invest in companies, including start-ups, which are developing technologies that could be relevant for ZF. “To secure this position and build on it long-term, we need to access innovative technologies quickly,” said Dr. Stefan Sommer, CEO of ZF. "Zukunft Ventures are a flexible and quick tool that enables companies to keep up the pace of innovation," Sommer said.
Significance: Major automotive suppliers are taking various approaches to have access to future technologies in emerging areas such as electro-mobility, connectivity, and autonomous driving. One approach that is gathering pace is making strategic investment in companies that are researching and developing advanced automotive technologies. Bosch, for instance, has been operating one such company, called Robert Bosch Venture Capital GmbH, which has invested in several technology companies including start-ups at various stages of funding.
Some other suppliers like Denso and Delphi have been making strategic investments in technology companies including start-ups even if they have no dedicated venture firms like Bosch, and now ZF. Denso was the lead investor in the latest round of funding by a US-based start-up ThinCI, which is working in the area of deep learning and vision processing. In August this year, Delphi was the main investors when another US-based start-up Quanergy raised USD90 million. Quanergy is working in the area of low-cost Lidar sensor, which is vital for autonomous driving cars. ZF was investing in technology companies even before it set up Zukunft. In August, the company invested an undisclosed amount in Ibeo Automotive Systems, which specializes in Lidar technology. Last month, ZF acquired 40% in another technology company, doubleSlash, which develops software for vehicle networking.
Paolo Martino
Principal Analyst
IHS Automotive
