Porsche is establishing an “innovation office” in Tel Aviv, Israel, with the aim to guarantee access to technology trends and talent.
In line with this goal, the German carmaker has invested an eight-figure sum in the Magma and Grove venture capital funds, with further investments in start-ups and funds planned.
Porsche executive board chairman and executive board for finance and IT member Lutz Meschke said Israel is a key market or IT experts and engineers.
“It has more startups per capita than any other country in the world.
“This talent and technological know-how coupled with the great expertise offered by our employees creates the ideal breeding ground for future business models,” he said.
He added that close collaboration with Israeli experts is necessary so that the company can quickly assess new technologies, develop good relationships and pilot appropriate solutions.
The Magma Venture fund invests since 1999 and is currently focused on artificial intelligence and automotive.
With investments in numerous successful start-ups like Waze, Magma Venture is one of the major venture capital funds in Israel and has 600 million US dollars under management.
Established in 2015, Grove Ventures is a venture capital company with a volume of $100 million.
Its primary early stage investment areas are the Internet of Things (IoT), Cloud Technologies and Artificial Intelligence.
“Innovations need to be developed systematically, which is why we are starting to open up; it is both desirable and essential for us to welcome inspiration from other industries.
“That’s why we are working together with start-ups, but also establishing partnerships with other companies and the scientific community as well as investing in funds that are relevant to our sector,” said Meschke.