From Screens to Systems. How LG Technology Ventures Builds the Next Era

Feb 10
8 min read

LG isn't just writing checks and hoping for the best. Over the past years, they've invested over 400 billion Korean won across 64 global startups and venture funds, with half of those bets placed squarely on artificial intelligence, bio, battery, and mobility. That's the kind of focus you see when a company knows exactly where the world is headed.

The shift from consumer electronics giant to "Smart Life Solutions" company becomes crystal clear when you look at moves like their $10 million commitment to the $130 million Alpha Intelligence Fund. Three LG affiliates have already committed $192 million to LG Technology Ventures' second fund. This isn't about quick wins — it's about building something that lasts.

What we're seeing here is a masterclass in corporate evolution. LG Technology Ventures is systematically constructing the technological foundations that will power our collective future. But how exactly are they doing it?

From Consumer Electronics to Corporate Innovation

The LG you knew ten years ago? That company doesn't exist anymore.

What we're witnessing is one of the boldest corporate pivots in tech history. The company that built its empire on televisions and refrigerators has completely rewired itself for a world where hardware alone gets you nowhere fast.

How LG evolved from hardware to systems thinking

The numbers tell the transformation story better than any corporate presentation could. The share of high-performance businesses in LG's total revenue jumped from approximately 29% in 2021 to 45% by late 2023, while their contribution to operating profit soared from 21% to about 90% during the same period.

That's not incremental change — that's complete business model reconstruction.

📌 LG stopped thinking about products and started thinking about connected experiences across multiple domains

📌 They shifted from standalone devices to integrated systems that actually talk to each other

📌 The focus moved from selling hardware to providing "Smart Life Solutions" that solve real problems

The birth of LG Technology Ventures in 2018

Here's where it gets interesting. To power this evolution, LG planted their flag in Silicon Valley and launched LG Technology Ventures in 2018. They started with over $400 million in fund assets, backed by six LG Group affiliates.

But this wasn't your typical corporate venture play. The investment team brought together experienced investors, entrepreneurs, technologists, and industry domain experts who create value beyond mere funding. Their mandate? Hunt for early-stage startups across artificial intelligence, mobility, advanced materials, life-sciences, next-generation display, mobile, and 5G technologies.

Why LG needed a CVC to stay competitive

Simple answer: speed ❗

LG Technology Ventures operates as the conglomerate's advance guard — finding and vetting new businesses for potential acquisition while the competition is still figuring out what's next. The CVC functions as an integral mechanism for securing innovative technologies that power LG's core growth engines.

The result? LG actively expands cooperation with innovative startups while pursuing qualitative growth. It's a two-way street that benefits everyone involved.

Inside LG Technology Ventures' Investment Strategy

Five sectors. That's where LG Technology Ventures places its bets — and the focus is paying off in ways that traditional corporate venture arms rarely achieve.

Focus areas: AI, mobility, energy, bio, and deep tech

We see a deliberate strategy unfolding across artificial intelligence, mobility solutions, energy technologies, biotech innovations, and foundational deep tech. This isn't the scattershot approach of chasing every hot trend. LG has built genuine expertise in areas where technological convergence creates the most value.

The concentrated approach makes sense when you consider LG's evolution into a solutions provider. Each investment feeds into their broader "Smart Life Solutions" vision, creating a portfolio with clear strategic alignment rather than random bets on emerging technologies.

The venture client model: more than just capital

Here's where LG gets creative: they don't just invest — they become customers.

📌 LG serves as both investor and potential customer for portfolio companies, creating immediate commercial opportunities for startups while securing early access to breakthrough technologies.

This dual relationship establishes what we like to call a virtuous cycle. Startups gain validation through real-world implementation, accelerating their growth. LG gets firsthand operational insights into emerging technologies before broader market adoption. Everyone wins.

How LG selects enterprise-ready startups

LG's investment process prioritizes one thing above all: commercial viability. They examine technical maturity, scalability potential, and compatibility with existing LG business units. Proof-of-concept isn't enough — they want startups ready for substantial growth.

This disciplined selection explains why LG's portfolio consistently features companies prepared for enterprise environments rather than early experimental ventures. They're not interested in lab projects; they want technologies ready to scale.

What LG looks for in founders and teams

Beyond the technology itself, LG places extraordinary emphasis on leadership.

They seek entrepreneurs with domain expertise paired with adaptability — leaders who understand corporate partnership complexities while maintaining startup agility.

📌 Teams demonstrating both technical excellence and business acumen receive priority consideration, particularly those with experience handling enterprise sales cycles.

This founder-focused approach reflects LG's understanding that technological promise must connect with exceptional leadership to deliver meaningful results. The best technology in the world won't matter without the right team to execute.

Strategic Startup Partnerships That Define the Portfolio

The real test of any investment strategy isn't what you say — it's who you back. LG Technology Ventures' portfolio tells the story of a company that doesn't just spot trends, but actively shapes them through strategic partnerships across multiple sectors.

Anthropic: AI safety and large language models

📌 LG's bet on Anthropic reflects something crucial: responsible AI development isn't optional anymore. Anthropic's work on AI safety tools like Petri enables autonomous testing of large language models, identifying risks such as deception, power-seeking behaviors, and security vulnerabilities across 14 leading LLMs. This partnership positions LG at the forefront of AI safety — a space that's becoming more critical by the day.

WeaveGrid: EV-grid integration and energy storage

The WeaveGrid investment shows LG thinking several moves ahead in the EV infrastructure game. This partnership brings critical energy storage expertise to WeaveGrid's platform, enabling advanced vehicle-grid integration where AI technology orchestrates EV charging while keeping the grid stable.

📌 "This collaboration enables us to optimize battery performance at both vehicle and grid level," notes WeaveGrid CEO Apoorv Bhargava. That's exactly the kind of dual optimization that will define the energy transition.

Bear Robotics: AI-powered service automation

Bear Robotics' Servi Plus robots are already making waves across restaurants, corporate campuses, and senior care facilities. The numbers speak for themselves: thousands of robots deployed across the US, Japan, and Korea, saving restaurant workers approximately 25 miles of walking weekly. LG's investment here isn't just about automation — it's about reimagining how service industries operate.

Allganize: LLM-based enterprise productivity

What catches our attention about Allganize is how they've cracked a fundamental enterprise problem: making data immediately actionable without extensive cleaning. Their advanced RAG technology comprehends complex documents and proactively seeks clarification on ambiguous queries, while enabling non-coders to build custom AI agents through an intuitive interface. That's the kind of practical AI application that drives real business value.

Inworld AI: Virtual characters and immersive tech

Inworld AI rounds out the portfolio with AI-powered virtual characters that exhibit distinct personality traits, emotions, and goals. The company has raised USD 130M in venture capital, but what's more telling is how LG supports beyond the check.

📌 "The LGV team accompanied us on our business trip to Korea... helping us work not only with LG affiliates but also with other Korean companies," shared Inworld's VP of Operations. This hands-on approach to partnership building is what sets LG Technology Ventures apart from traditional investors.

How LG Scales Startups and Builds the Next Era

Building the future requires more than just smart investments — it demands the right infrastructure to turn promising ideas into market-changing realities. LG figured this out early and built something remarkable.

The role of LG NOVA and Mission for the Future

2021 marked a turning point. That's when LG established LG NOVA as their North American Innovation Center in Silicon Valley, creating the cornerstone of their open innovation strategy. Their flagship program? "Mission for the Future" — a nine-month challenge that discovers startups working to improve quality of life through greener, smarter, more-connected solutions.

Here's what makes it work: LG sets aside up to USD 20 million to support concept development for finalists. But the real value comes from direct access to LG NOVA's California team — the kind of partnership that turns good ideas into game-changing businesses.

Creating synergy between startups and LG business units

CEO William Cho's 3B strategy — Build, Buy, and Borrow — comes alive through LG NOVA's approach. The proof? Primefocus Health, their first new venture launched in 2024. This platform shows exactly how deep collaboration works, connecting cutting-edge technology with personalized patient care while giving healthcare providers the critical data they need.

📌 It's not just about funding — it's about creating genuine partnerships where both sides win.

Expanding global reach through funds like AIF and Nova Prime

LG partnered with Clearbrook LLC to launch the NOVA Prime Fund, targeting more than USD 100 million. Meanwhile, LG NOVA is increasing its startup promotion fund to over USD 100 million by end of 2024. The focus areas? Sustainable energy, digital health, immersive AI, and future industries.

Why LG's CVC model is built for long-term transformation

What sets LG apart from traditional corporate venture arms? They offer startups something better than the usual M&A or lengthy R&D cycles. Their Partner Alliance Program brings together powerhouses like IBM, Niantic, and Mayo Clinic Innovation Exchange.

This ecosystem approach ensures LG stays ahead of innovation while creating lasting value across industries. We're watching a company that doesn't just invest in the future — they actively build it.

Conclusion

Here's what makes LG Technology Ventures different: they're not just betting on the future — they're actively building it.

We've watched countless corporate venture arms come and go, chasing trends and quick exits. LG's approach stands apart because they understand something fundamental: tomorrow's market leaders won't be selling products, they'll be orchestrating experiences. The journey from consumer electronics giant to "Smart Life Solutions" provider isn't just smart positioning — it's survival.

📌 Their venture client model creates real value for startups beyond capital — immediate market validation through actual deployment.

📌 Partnerships with companies like Anthropic and WeaveGrid position LG at the intersection where AI, energy, and infrastructure converge.

📌 Initiatives like LG NOVA and "Mission for the Future" provide structured pathways for innovations to scale beyond proof-of-concept.

The ecosystem they're building connects startups, established businesses, and research institutions in ways that accelerate innovation cycles while maintaining enterprise reliability. Companies like IBM, Niantic, and Mayo Clinic Innovation Exchange are already part of their Partner Alliance Program, creating cross-sector collaborations that generate sustainable value across multiple industries.

What we're witnessing is a masterclass in strategic patience. While others chase quarterly returns, LG is methodically constructing the technological foundations that will power the next decade of innovation. Their evolution from screens to integrated systems shows how forward-thinking companies can shape technological frontiers rather than simply react to them.

Building with corporates requires more than capital — it requires the right entry points. At Elpis Labs, we work with founders navigating corporate venture ecosystems, helping them position for real partnerships, pilots, and long-term scale. If corporate collaboration is part of your growth strategy, let’s explore what that could look like.

FAQs

Q1. What is LG Technology Ventures and how much funding does it manage?

LG Technology Ventures is LG's corporate venture capital arm, managing approximately $780 million in funding to support promising startups globally. It was established in 2018 and has since expanded its investment platform significantly.

Q2. What are the main focus areas for LG Technology Ventures' investments?

LG Technology Ventures primarily invests in five crucial sectors: artificial intelligence, mobility solutions, energy technologies, biotech innovations, and deep tech. These areas align with LG's strategic vision for future growth and technological advancement.

Q3. How does LG Technology Ventures' investment strategy differ from traditional venture capital firms?

LG Technology Ventures employs a "venture client model," where LG acts as both an investor and potential customer for portfolio companies. This approach provides startups with immediate commercial opportunities and gives LG early access to groundbreaking technologies.

Q4. Can you name some notable startups in LG Technology Ventures' portfolio?

Some notable startups in LG Technology Ventures' portfolio include Anthropic (AI safety and large language models), WeaveGrid (EV-grid integration), Bear Robotics (AI-powered service automation), Allganize (LLM-based enterprise productivity), and Inworld AI (virtual characters and immersive tech).

Q5. How does LG support the growth of startups beyond just providing funding?

LG supports startup growth through initiatives like LG NOVA, which offers programs such as "Mission for the Future" to nurture innovative startups. The company also facilitates collaborations between startups and LG business units, and has established funds like NOVA Prime to accelerate global innovation.