Lenovo is investing $500 million in in startups shortly after it announced a new fund. According to Lenovo, this fund has the purpose of backing companies with synergies, specifically those in cloud computing, AI, big data, and robots.
In addition, Lenovo also launched an incubator program for its own businesses. Similar to Baidu’s programs, Lenovo is creating a “subsidiary incubation” program that allows the businesses to go independent and raise money in addition to tapping into the lew LCIG, Lenovo Capital and Incubator Group. Some beneficiaries of this program include SHAREit, Lenovo Cloud, and Lenovo Connect.
This new fund and startup push occurs at a time when the company is restructuring after its first loss last year. Even though it remains the top PC seller worldwide, Lenovo’s sales are going down as the market shrinks. Other issues include Lenovo’s struggles with the smartphone market.
Given Lenovo’s history of making skillful investments, it would be very interesting to see how this fund turns out.