BMW is on a mission to finance location-based mobile apps. And yes, you read that right.

The premium car company launched a $100 million venture fund in February that is aimed at developing what it calls "individual mobility solutions." On Thursday, it announced that it will open a startup incubator in Lower Manhattan.

BMW i Ventures will focus on startup solutions that make it easier for individuals to navigate urban areas. Apps that crowdsource parking information or traffic conditions and apps that help consumers navigate multiple modes of transportation are some examples that fall in this category, said i Ventures Managing Director Alexander Diehl in a phone call.

Unlike the $100 million venture fund that GM launched in July 2010, BMW is interested in financing solutions related to any form of transportation, whether that be car, bike, subway or walking. This might seem counterintuitive for a car company, but while BMW may not historically be interested in non-automotive transportation, many of its customers and potential customers in urban areas are.

"Urban environments are becoming more relevant to our consumers," explains Joerg Reimann, another managing director of the fund. "We see services arising that are relevant for everyone that is part of the mobility game...Being part of the mobility playground, we have to be able to play on the service area as well as the product area."

BMW has already made an effort to target city dwellers with a car sharing program that it announced in March, and the kind of startups that it plans to finance will likely increase its visibility among a similar crowd.

i Venture's first investment of $5 million went to MyCityWay, a company that makes location-driven city guidebook apps. Those apps now include a "powered by BMW i" banner. Other apps funded by the company will include BMW advertising on a case-by-case basis.

The startup was a winner of the NYC BigApps competition, which challenges developers to create apps using city databases. This year, BMW is sponsoring the competition by matching the prize money in each app category.