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Nokia plans to invest in promising startups
Finnish company Nokia has joined forces with venture capital firm NGP Capital to create a joint fund. Fund V is designed to invest in various startups that work in cybersecurity, 5G technology, and cloud computing.
The fund has only one investor, Nokia, and the company has already invested $400 million in it. The main objective of Fund V is startups that offer interesting solutions in the application of 5G capabilities to improve industrial and business processes. The companies will be selected based on their prospects, as well as their usefulness for Nokia’s development. The fund will use clear rules for the allocation of investments; it will evaluate startups in terms of their development in the market, implementation of innovative technologies, and unit economy. In addition, Fund V analyzes companies according to ESG indicators, which include environmental, social, and corporate governance aspects.
The new fund is based on the NGP Capital model, which has been successfully operating for more than 15 years. According to a statement from the representatives of Nokia, the launch of the Fund V is one of the components of the complex measures, which the Finnish manufacturer plans. The company plans to explore new markets and develop unique products that will expand its business and strengthen its position in the electronics market. The fund’s activities will be integrated with other Nokia businesses, including Nokia Bell Labs.
It should be noted that the Finnish corporation has been cooperating with NGP Capital for a number of years. Fund V is already their fifth joint fund. The total capital amounts to 550 million dollars, but not all of it is invested. During the entire period of cooperation, NGP Capital and Nokia allocated more than 1.6 billion dollars. As for the new fund, its investment model is based on global practices – investments will be made over 10 years.
Nokia pays special attention to 5G technologies. In 2022, the company initiated a training and certification program for working with 5G networks. It was the first project of its kind in this area, through which people can gain knowledge and experience for maintenance and interaction with this communication format. The program trains participants in all basic processes, from network access to application management. Representatives of the company say that such an initiative will accelerate progress in the field of 5G technology, as well as help professionals to get the necessary qualifications. In addition, Nokia previously launched a similar program, designed for the initial level of knowledge in the field of 5G.