Nokia (NYSE:NOK) launched a $100 million fund to invest in connected cars, as the mobile equipment maker seeks to capitalize on a growing market.
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The Finnish company already offers in-car technology through HERE, its mapping and location unit. Nokia said it plans to make investments in auto tech and local services companies that strengthen HERE’s products.
The fund will be managed by Nokia Growth Partners, the company’s venture capital arm.
“Our new $100 million venture fund launched today further underlines our belief that the connected car is a significant growth opportunity where NGP is poised to make great investments,” Nokia President and CEO Rajeev Suri said in a statement.
Michael Halbherr, CEO of HERE, said the new fund “underscores that connectivity is rapidly reshaping what is possible in the car environment.”
The move comes as Nokia looks to bolster its portfolio following the sale of its handset business to Microsoft (NASDAQ:MSFT). The $7.5 billion deal was completed in April.
Shares of Nokia fell two cents to $7.33 in recent trading. The stock is down about 9.6% since the start of 2014.