Volvo Cars has completed the first strategic investment via its newly-founded investment fund by taking a stake in Luminar, a start-up in the development of sensor technology for use in autonomous vehicles.

The investment in Luminar, based in Palo Alto, California, and Orlando, Florida, deepens Volvo Cars’ existing collaboration with the firm, which currently focuses on development and testing of its sensing technology on Volvo cars. LiDAR technology, which uses pulsed laser signals to detect objects, is a crucial element of creating safe autonomous vehicles.

The Volvo Cars Tech Fund was launched earlier this year and aims to invest in high potential technology start-ups around the globe. It focuses its investments on strategic technology trends that are transforming the industry, such as artificial intelligence, electrification, autonomous driving and digital mobility services.

Companies will benefit in a number of ways from participation by the Volvo Cars Tech Fund. Apart from the association with one of the world’s leading premium car makers, start-ups may gain the ability to validate their technologies and accelerate the pace of achieving product market fit.

Source: Volvo Cars