BMW i Ventures, the independent venture capital fund of the BMW Group, has launched its third fund with $300 million to invest in startups applying AI across the automotive industry, manufacturing, and supply chains.

Fully backed by the BMW Group, Fund III will focus on physical AI, agentic AI, industrial software, manufacturing technologies, supply chain technologies, and advanced materials. The fund will invest across North America and Europe from seed through Series B. The launch brings BMW i Ventures’ total capital under management to $1.1 billion.

The fund will back AI-native enterprise applications that automate complex workflows in industrial environments, as well as physical AI that enables robots and autonomous machines to perceive, plan, and act in the real world. Circularity and advanced materials remain a core investment pillar, with Fund III targeting technologies that support recycling and recovery of critical materials, circular manufacturing processes, and new materials that combine performance improvements with more efficient resource use.

Since 2011, BMW i Ventures has invested in more than 90 companies and realized more than 30 exits, including GaN Systems, acquired by Infineon for $830 million, and 11 portfolio companies that have gone public, such as Kodiak, Chargepoint, and Xometry. Active portfolio highlights include Skylo, Embotech, Tekion, Rive, and Synera.

KEY QUOTES:

With BMW i Ventures, we are investing in technologies that will shape the future of our industry. Our corporate venture capital activities play a key role in our innovation strategy, complementing our internal R&D and building strategic partnerships across the entire automotive value chain. BMW i Ventures is launching the third fund at the perfect time: AI has shown its tremendous potential to transform products, operations, and entire value chains.

Oliver Zipse, CEO, BMW Group

With Fund III, we’re backing the founders who are turning AI into an industrial advantage, on the factory floor, in logistics networks and across global supply chains. The new fund sharpens our focus for a world where AI-native software, robotics, and materials innovation will define the next generation of suppliers.

Circularity is not only about reducing emissions, it’s about securing access to raw materials and reducing exposure to constrained supply chains. The new fund’s focus on AI expands the toolkit for sustainability rather than replacing it.

Marcus Behrendt, Managing Partner, BMW i Ventures

AI is quickly becoming part of the operating system of the modern enterprise. We’re particularly interested in AI that can execute workflows end-to-end, driving real ROI through autonomous systems. That’s where productivity gains have real business impact.

Kasper Sage, Managing Partner, BMW i Ventures