BY AUTOMOTIVE VENTURES | 10 APRIL 2023 | VIEW ONLINE ➡️

We will be conducting the final close of the Automotive Ventures DealerFund at the end of this month (April 30th). If you’re a dealer who wants to invest in early-stage AutoTech companies that benefit your business, let me know. We are still accepting new investors, but only until the end of this month. (Link)

U.S. auto-industry sales, beaten down through much of the pandemic, are starting to rebound as buyers see something they haven’t in a long time: more cars and trucks on dealership lots. (Link)Last year was "hands-down the most profitable year ever" for auto dealers, says J.D. Power. This year, rising production and increasing competition are already driving down prices and profit margins. (Link)Many consumers already struggled to pay the large car loans they took out to buy vehicles after prices surged in 2021 and early 2022. They are less likely to keep paying if they also have to foot steep bills to keep the cars on the road. (Link)Ram CEO Mike Koval Jr.: "The cost of electrification is expensive, so for sure we need to make sure that we protect the profitability of our current in-market [internal combustion engine] business to help fund the transition to electrification." Ram had an 81-day supply of vehicles at the end of March, he said, which is reminiscent of dealership inventory before the pandemic. (Link)China has rolled out more public charging facilities than the rest of the world combined. The problem is many are barely being used. The low usage illustrates the tricky reality of public charging networks: Reliable infrastructure is needed to help ease consumers’ anxiety about running out of battery range, but more EVs are needed to make the stations economically viable. (Link)A handful of experiments point to the astonishing potential of generative AI to replace workers. Goldman Sachs economists conclude generative AI could raise labor-productivity growth—the building block for economic growth—by almost 1.5 percentage points a year, a de facto doubling from its current rate. (Link)Tech-savvy thieves have found a new way to steal cars, using specially crafted devices that simply plug into the wiring harness behind the headlight of a victim's car. Once they're plugged in, they're able to unlock, start, and drive away before the owner even catches wind of what's going on. (Link)Tesla has reduced prices again, as requirements to qualify for the $7,500 federal tax credit tighten. While lowering prices may boost sales, it comes at a cost. Tesla has enjoyed one of the higher automotive margins in the sector. Selling its vehicles for lower prices could chip away at that profit margin unless it can reduce costs elsewhere. And the price reductions can’t go on forever. (Link)For decades, American cities have had a parking problem: too much of it. Recognizing this, cities are shrinking the number of spaces, freeing up the land for other uses, with far-reaching consequences. (Link)The US Environmental Protection Agency (EPA) is expected to propose ambitious greenhouse gas emission standards for cars that are so stringent, they’re designed to ensure that at least half the new vehicles sold in the United States are all-electric by 2030, up from just 5.8 percent today. And the rules could put the nation on track to end sales of new gasoline-powered cars as soon as 2035. (Link)Lithium prices are reversing after a two-year tear, a potential boost for consumers and automakers that got hit by rising battery costs last year. Prices for lithium are down more than 30% this year, ending the two-year run that pushed up the value of the key battery material by a factor of 12. (Link)One of the big advantages of switching to an electric vehicle over the past few years has been the cost savings from swapping electrons for gasoline. But rising electricity rates, declining gas prices, and increases in the cost of fast charging on the road have complicated the savings calculation. (Link)The transition to EVs is going to be messier, more expensive, and take far longer than the policymakers who are pushing it believe. (Link)Have a great week,Steve Greenfield

Forwarded this email and not yet a subscriber? 

🎤 I caught up with ASOTU to discuss the April Automotive Ventures Intel Report, including Software Subscriptions, Over-The-Air (OTA) Updates, and where specifically auto dealers should be paying attention. (Link)🎤 Thanks to the Nova Scotia Automobile Dealers Association for having me as a guest speaker last week. It was nice being back up in Canada. (Link)🗞️ On this week's Future of Automotive segment on CBT News we explore challenges that dealers may face regarding vehicle "Features-as-a-Service." (Link)🎤 I'm the keynote speaker at the GoFast Solutions' 2023 Mobile Expo on April 12th in Springfield, MA. (Link)

🎤 I'm the keynote speaker at the ToolTech 2023 conference on April 18th in Albuquerque, NM. (Link)🎤 I'm very excited to be hosting the "Emerging 8" nominees at the Auto Intel Summit on April 19th in Raleigh, NC. (Link)🗞️ Thanks to Joe Overby and Auto Remarketing for the coverage of the Automotive Ventures DealerFund. (Link)

🌟Carmatic maximizes how dealers already work with car buyers. Smart search/discovery, enhanced retailing, multi-user desking, data-rich vehicle recommendations, and marketing automation all rolled into one. (Link)🌟Riderr is revolutionizing how biking data is collected by making it automatic, easy, and rewarding (think Fitbit) with a new app automatically detects when you're riding a bike and automatically tracks your rides, miles, and CO2 savings. (Link)

🚗 Dealer Tech & Auto Commerce

Reynolds and Reynolds has acquired DealerCorp Solutions. DealerCorp’s product, deskit, is a digital retailing tool allowing dealers to present sales and F&I options on any screen, including wall-mounted screens, kiosks, tablets, and personal computers. Financial terms were not disclosed. (Link)Black Widow Imaging has new ownership and has restructured under new management. The company, which specializes in high-quality automotive imaging, was purchased late last year in an auction in Missouri bankruptcy court by existing investors. (Link)

Auto classifieds specialist Automotive MediaVentions has acquired 100% of digital retailer Bynco in the Netherlands from AutoBinck Group N.V. (Link)carsales.com.au has acquired Publift, a local advertising technology company that helps online publishers generate ad dollars more effectively by using automated advertising technology. (Link)

Income verification startup Payscore recently raised $2.2 million. The startup, previously called The Closing Docs, offers a standalone income screening service, and the data can also be embedded into an online rental application. (Link)

✈️ Air Mobility & Space

Ascendance Flight Technologies has raised about $22.8 million (€21 million) in a Series A. The funds will be used for future test flights and certification for its ATEA hybrid-electric VTOL aircraft. (Link)Flyby Robotics, the end-to-end drone automation and delivery company, has raised $4M in pre-seed investment funding. Flyby is building end-to-end automation for drone delivery. (Link)

🦾 Autonomy, Robotics & AI

4.screen has raised €21 million in Series A funding. It allows global and local brands to interact with drivers in real time via their car screens, using in-car technology and data signals. (Link)Autonomous vehicle manufacturer Applied EV has secured their latest investment round with participation from Suzuki Global Ventures and Club Investible. Applied EV combines automotive innovation with software development and deep robotics capability. (Link)

⚡Electrification & Alternative Fuels

Double-SPAC! EV automaker Arrival (Nasdaq: ARVL) and Kensington Capital Acquisition Corp. V (NYSE: KCGI.U), a SPAC, announced a definitive agreement for a business combination. (Link)Spring Lane Capital is backing Spring Free EV, leading a $30 million investment in the financing company, which helps fleet owners convert to electric vehicles. (Link)

💵Finance & InsuranceCarmaCare launched its proprietary “healthcare-for-your-car” subscription service three months ago to take over where traditional car insurance leaves off and to provide an easier way to buy extended warranties. The company has raised $4.5 million. (Link)

🚢Maritime

Norsepower has raised €28 million in its latest Series C fundraising round to scale up production of its mechanical sails for large ships. (Link)Swedish EV startup X Shore, which creates electric-powered boats, announced a €26.5m raise. It says the cash will be used to continue to scale its in-house boat production and accelerate growth in the US. (Link)

🛴 MicromobilityIndian electric mobility startup Magenta Mobility has closed a $22 million Series A1 round. The startup has a fleet of 800 three-wheeled electric cargo trucks with which it delivers goods in seven cities across the country. (Link)Indonesia-based SWAP Energy, which provides battery-swapping solutions for two-wheeled electric vehicles, has raised about $7.2 million in a pre-Series A funding round led by Ondine Capital. (Link)

📱Shared Mobility & Subscription

Shuttlers, a Nigerian shared mobility company that allows individual and corporate passengers to take rides on multiple bus routes via an app, has raised $4 million. (Link)

🔗Vehicle Connectivity & Cybersecurity

Telematics startup LightMetrics has raised $8.5 million in a Series A round led by Sequoia Capital India. The platform monitors and processes live footage from the dashcams of trucks and transport vehicles and uses AI to provide on-the-stop feedback on things like the speed of a vehicle, risky driving behavior, hard braking, etc, apart from recording accidents. (Link)🚘 Vehicle Production & AssemblyJaguar Land Rover, boot brand Dr. Martens, and fashion group Tapestry are among the investors in an $18m round into Generation Phoenix, which has come up with a way to produce recycled leather goods on a large scale. UK-based Generation Phoenix’s production process takes waste leather from landfills and converts it to fibers that are then intertwined around a core using high-pressure water jets. The company claims the resulting material is more durable than conventional leather and it can be configured for clothes, shoes, or seating. (Link)

🏎️ Early-stage AutoTech or Mobility founder? We'd love to hear from you.🏁 Interested in investing directly into early-stage AutoTech and Mobility companies? Check out The Automotive Ventures Investment Club (AVIC)📈 Are you an auto dealer interested in investing in early-stage AutoTech? Learn more about the DealerFund here.✨ Looking for our Dealership AutoTech Company Landscape? View that here.✨ Looking for our Mobility Tech Company Landscape? View that here.🚀 Interested in exploring Automotive Ventures' portfolio companies shown below? Check them out here.