LG invests USD $10 million in SBVA’s Alpha Intelligence Fund

LG Electronics has committed USD $10 million as a key limited partner in the newly established USD $130 million Alpha Intelligence Fund (AIF) by SBVA to expand its investments in AI and deep-tech startups. SBVA, formally established as SoftBank Ventures Asia under the SoftBank Group and later became independent, will curate a portfolio for AIF by selecting startups with high growth potential in AI, deep tech, and robotics. They will leverage their global networks and resources to support the growth and achievements of these startups.

For over 20 years, SBVA has been investing in global startups, enhancing its expertise in information and communication technology (ICT), and strengthening its international network. In participating in the SBVA fund, LG aims to share information on rapidly changing innovative technology trends and reflect these global market changes in its management strategies.

Eugene Yoo, vice president and leader of the Open Innovation Task at LG, stated, “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. We plan to discover and collaborate with capable startups to explore future business opportunities.”

Through this investment, LG seeks to expand cooperation with innovative startups and continue efforts to secure future technologies, ultimately aiming for qualitative growth. The company plans to strengthen its networking with global companies and startups, discover opportunities for strategic investments, and secure technological capabilities for future businesses.

LG intends 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. The company plans to continue efforts to secure future core technologies and expand its business areas beyond the home to include business spaces, mobility, and more.

In recent moves towards this goal, LG acquired an 80% stake in Athom, a smart home platform company headquartered in Enschede, Netherlands, in July and has signed a contract to acquire the remaining 20% within the next three years. In March, LG invested USD $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.

Additionally, through LG NOVA, the company’s Silicon Valley-based innovation centre, LG has been conducting annual contests since 2021 to discover and nurture startups with innovative ideas and support their commercialisation, thereby seeking new business opportunities. LG NOVA focuses on building sustainable growth and nurturing systems for future innovative industries such as digital healthcare, clean tech, and AI.

SBVA CEO JP Lee said in a statement, “We will continue to make investments that accelerate technological innovation, leveraging our differentiated technical expertise, global network, and investment experience. We plan to maximise the growth potential of these companies by supporting the establishment of joint ventures with startups and major investors and by promoting collaborative business projects.”

Meanwhile, SBVA manages assets totalling approximately USD $2 billion, investing in over 100 companies and operating offices in San Francisco, Israel, Singapore, and Seoul. The firm plans to conduct a second closing within the year to increase the size of the AIF.