Nokia Invests $250 Million in Funding For Mobile Ecosystem
Venture capitalists to focus efforts on the U.S., Europe and Asia.
Nokia has announced that it's investing quarter of a billion dollars in its venture funding division, Nokia Growth Partners. The cash injection will allow Nokia Growth Partners members to invest in "high potential businesses within the mobile ecosystem." The venture capitalists will focus on Nokia's markets in the U.S., Europe and Asia.
The Finnish smartphone manufacturer, which made a profit of $269 million during 2012's fourth quarter, has expanded its presence in China by appointing former AMD China president David Tang as its managing director. Lu Guo, a former Keystone Ventures vice president, will take up the role as principal.
Nokia's latest investment is its third since it founded Growth Partners back in 2005. The fund has been invested in a number of firms such as mobile user interface company Swype.
"Over the past decade, Nokia has developed an innovative venturing strategy," said Timo Ihamuotila, Nokia executive vice president & chief financial officer. "Our ongoing commitment to Nokia Growth Partners reinforces Nokia's support for a vibrant mobile ecosystem and our determination to collaborate with industry innovators to build great mobile products."
"Nokia Growth Partners is delighted with Nokia's continuing commitment, which recognizes strong financial performance since our formation in 2005," said John Gardner, managing partner of Nokia Growth Partners.
"What sets NGP apart from pure financial investors are the partnerships and insights our invested companies get from their close association with Nokia. In the past year, NGP has also realized several successful exits, including the IPOs of Morpho and Inside Secure and sales of Swype, Summit Microelectronics and Netmagic. We are excited about our existing strong portfolio of companies and their potential impact globally."
Search giant Google is another technology firm known for its investment spending as well; it last invested $300 million into its venture-capital arm for start-ups.