Nokia launches E40m corporate venture fund

The fund will provide seed capital to ventures that develop from within the company group.

Nokia has launched a E40m corporate venture fund that will invest in early stage technology companies that emerge from within its ranks.

The Nokia Early Stage Technology Fund will provide internal entrepreneurs with seed capital for opportunities that are closely linked to its core vision, but have an uncertain immediate value, said Petteri Terho, managing partner of the new fund.

Over the last two years Nokia has been gradually increasing its participation in venture capital. The company has participated in a number of finance rounds, each time joining forces with venture capitalists. A recent example is Nokia’s investment alongside 3i, Accenture and Sampo to invest in Meridea Financial Software, a Finnish company developing banking and financial software for desktop and mobile online services.

Earlier in the year, the company invested in Enition, a French-based developer of internet and wireless payment technology. Others to invest in the company included Galileo Partners and Softbank Europe Ventures.

Another Nokia-related venture capital operation is Nokia Venture Partners, which currently has around $650m under management. It launched a $500m fund at the end of 2000, having invested in more than 25 European and US companies from its first fund. Third party investor with an interest in the fund include Goldman Sachs, BMC Software and CDBWebtech.