to either lead or co-invest with other venture capital firms, but always as a minority investor. The value we can add comes not only from the funding we provide to start-ups, but also with the understanding that we want to be a customer of technology being developed by the start-up company. The concept of not only being an investor, but also a customer, is a unique source of value that GM Ventures offers for start-up companies that we invest in.
X: Tell us about what you have funded so far, and why.
JL: We’ve closed two investments since we were formed about four months ago, and I expect a couple of others to close in the near future. Our investments to date have been have been:
Bright Automotive—GM Ventures invested $5 million. Bright is developing a light-weight, plug-in hybrid commercial van. In addition to our investment, we expect that we will finalize a commercial agreement in which Bright will use a GM powertrain and other components in their vehicle.
Sakti3—GM Ventures invested $3.2 million. Our investment in Sakti3 gives us access to an innovative battery technology that has the potential to be a mainstream solution for electrically driven cars and trucks of the future.
X: Are you limited to the fund size you currently have, the way a traditional venture fund would be, or can you tap corporate coffers for more funds if necessary?
JL: The first year of funding for GM Ventures was set at $100 million with the understanding that we will assess the funding for future years based on
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Author: Robert Buderi
Bob is Xconomy's founder and chairman. He is one of the country's foremost journalists covering business and technology. As a noted author and magazine editor, he is a sought-after commentator on innovation and global competitiveness. Before taking his most recent position as a research fellow in MIT's Center for International Studies, Bob served as Editor in Chief of MIT's Technology Review, then a 10-times-a-year publication with a circulation of 315,000. Bob led the magazine to numerous editorial and design awards and oversaw its expansion into three foreign editions, electronic newsletters, and highly successful conferences. As BusinessWeek's technology editor, he shared in the 1992 National Magazine Award for The Quality Imperative.
Bob is the author of four books about technology and innovation. Naval Innovation for the 21st Century (2013) is a post-Cold War account of the Office of Naval Research. Guanxi (2006) focuses on Microsoft's Beijing research lab as a metaphor for global competitiveness. Engines of Tomorrow (2000) describes the evolution of corporate research. The Invention That Changed the World (1996) covered a secret lab at MIT during WWII. Bob served on the Council on Competitiveness-sponsored National Innovation Initiative and is an advisor to the Draper Prize Nominating Committee. He has been a regular guest of CNBC's Strategy Session and has spoken about innovation at many venues, including the Business Council, Amazon, eBay, Google, IBM, and Microsoft.
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