Hyundai Establishes $91 Million Venture Capital Fund for Startups

On May 27, 2025, Hyundai announced the launch of a $91 million venture capital fund aimed at supporting early-stage startups. This initiative, driven by Hyundai's venture arm ZER01NE, focuses on investing in startups specializing in artificial intelligence (AI), robotics, cybersecurity, and energy technologies.

ZER01NE Fund III: A Strategic Investment Initiative

The newly launched ZER01NE Fund III is designed to target early-stage startups in strategic technological areas. This fund is the latest addition to Hyundai's ongoing venture investment activities, which have been in place for over 15 years. The fund is sourced from contributions by 10 different Hyundai affiliates, showcasing the collaborative effort within the Hyundai corporation to foster innovation and technological advancement.

Since its inception, ZER01NE has invested in more than 105 startups, demonstrating a sustained commitment to nurturing emerging companies. This fund continues to build on Hyundai's established presence in the venture capital landscape, following the rebranding of Hyundai Ventures to Hyundai CRADLE in 2017, which expanded its reach with five global offices.

Focus Areas: AI, Robotics, Cybersecurity, and Energy

ZER01NE Fund III will concentrate on startups that are working in the fields of artificial intelligence, robotics, cybersecurity, and energy technologies. These sectors align with Hyundai's strategic goals to integrate cutting-edge technologies into its business operations and product offerings. By investing in these areas, Hyundai aims to not only boost innovation within the company but also drive advancements in these critical sectors globally.

ZER01NE's portfolio already includes notable startups like Clobot and MakinaRocks, which reflect the type of innovative companies Hyundai is looking to support. This focus on technology-driven startups underscores Hyundai's commitment to staying at the forefront of technological development and ensuring its competitiveness in the rapidly evolving market.

Supporting Startups Through ZER01NE

Founded in 2018, ZER01NE was initially created as a talent platform and has since grown to operate a startup accelerator involving 195 companies. This accelerator provides startups with the resources and support needed to refine their products and achieve product-market fit, an essential component of success in the venture capital world.

At events like the Net Zero Challenge, startups have the opportunity to secure funding and gain valuable exposure, further emphasizing Hyundai's role in fostering a supportive environment for emerging businesses. In the post-Covid landscape, venture capitalists, including those associated with ZER01NE, are increasingly prioritizing business fundamentals, ensuring that startups have a solid foundation for growth and sustainability.

Hyundai's Legacy and Future in Venture Capital

Hyundai's venture investing journey began in 2011 with the launch of Hyundai Ventures in Silicon Valley. Over the years, the company has adapted to the evolving needs of the startup ecosystem, rebranding its venture operations to Hyundai CRADLE in 2017 and expanding its global presence. With the establishment of ZER01NE Fund III, Hyundai continues to build on its legacy of supporting innovation and technological advancement.

The launch of this $91 million fund marks a significant step in Hyundai's ongoing efforts to collaborate with innovative startups and integrate new technologies into its business model. As ZER01NE continues to manage and grow its investment portfolio, Hyundai remains committed to playing a pivotal role in the development of next-generation technologies.

Hyundai's recent establishment of the $91 million venture capital fund highlights its dedication to fostering innovation and supporting early-stage startups in strategic technological areas.