Sweden’s Volvo Makes Strategic Investment as DriveCam Goes Global
Volvo Group Venture Capital has made a strategic investment in San Diego-based DriveCam, which marked its fourth year of profitable operations in 2012 with more than $100 million in orders. The amount of Volvo’s investment was not disclosed in the statement today.
Volvo Group Venture Capital is part of the Volvo Group, based in Göteborg, Sweden. The company is a leading manufacturer of trucks, buses, construction equipment, and marine and industrial engines. The Volvo Group also noted its history of vehicle safety, saying its analysis of truck accidents has been one of the important bases for design and safety-related improvements at the company.
DriveCam, founded in 1998, uses dashboard video and telematics technologies to provide behavior-based risk mitigation—helping fleet operators, insurance companies and customers improve the way people drive. The company helps prevent collisions and reduces fuel costs by combining data and video analytics with driver coaching and real-time data feedback.
The transaction would have no material effect on the Volvo Group’s global earnings. Volvo Group Venture Capital says it will take a minority stake in DriveCam. Other DriveCam investors include San Diego’s JMI Equity, the private equity firm Welsh Carson Anderson & Stowe, Menlo Ventures, Triangle Peak Partners, Insight Venture Partners, and Integral Capital Partners.
In a statement yesterday, DriveCam said it grew its subscription base by 50 percent and doubled the number of orders in 2012, compared with 2011. DriveCam said it had increased its subscription base through global expansion, new strategic partnerships, and continued growth within existing customer fleets.