LG Electronics will form a $100 million fund with Connecticut-based investment firm Clearbrook to foster tech startups specializing in sustainable energy, digital health and artificial intelligence.

The Korean electronics company said its North American Innovation Center (NOVA) recently formed a strategic alliance with Clearbrook with a target to raise at least $100 million by the end of 2024, inclusive of the $20 million it initially injected in 2020 when the center launched in California under the initiative of finding new business models in Silicon Valley.

“As a part of our business transformation into a Smart Life Solution company, LG is innovating to expand its services and solutions in new areas of business growth,” LG Electronics CEO William Cho said in a statement.

“The strategic investments we made with LG NOVA led us to take the next step in working with Clearbrook and others to support the accelerated growth of new technological solutions in digital health, sustainability and future solutions platforms that benefit society. Clearbrook’s investment track record with a clear focus on impact and sustainable investing aligns perfectly with LG NOVA’s mission.”

Rhee Sok-woo, head of LG NOVA and senior vice president at LG Electronics, promised to utilize the funds to “move forward in our vision for a brighter future created with innovative solutions to help people live a better life.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]