BY AUTOMOTIVE VENTURES | 6 MARCH 2023 | VIEW ONLINE ➡️

What I'm Reading:

Growing tensions between franchised dealers and legacy automakers over evolving sales models and vehicle service work are emerging as key issues in statehouses across the U.S. this year. (Link)The Mississippi Senate passed a bill restricting sales of electric cars to franchised dealerships, preventing automakers from selling EVs directly to customers in the state. (Link)About two out of 13 people are making monthly car payments of $1,000 or more. For trade-ins that carry negative equity, the average amount is $5,500. (Link)Ford Motor Company has submitted a patent that envisions a future where the vehicle could repossess itself. (Link)Deloitte's "The Future of Automotive Mobility to 2035," explores the macro trends shaping the industry, along with the strategic imperatives to help successfully monetize emerging profit streams. You can download the 56-page report here. (Link)Private equity investors plowed at least $647.5 million into automotive-related startups in February. Of that, almost 71%, or $457.5 million, went to companies working on battery technology. (Link)Tesla aspires to sell 20 million vehicles a year by 2030, up from around 1.3 million in 2022. (Toyota Motor Corporation was the top-selling automaker globally in 2022, having sold 10.5 million vehicles.) The company is aiming to cut costs by 50% in its next-generation vehicle. (Link)As EV buyers are finding out, speed is a range-killer. Blame the laws of physics. Because the amount of air resistance an EV needs to overcome compounds as the car speeds up, the amount of battery required to go a certain distance gets worse the faster you go. (Link)Private equity investors plowed at least $647.5 million into automotive-related startups in February. Of that, almost 71%, or $457.5 million, went to companies working on battery technology. (Link)Have a great week,Steve Greenfield

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🗞️ It’s been three years since I left the corporate world and three years since we began publishing the Automotive Ventures Intel Report. Here's the introduction article from the March issue, where I reflect on why we're on this journey. (Link)🗞️ The March Automotive Ventures Intel Report is out, and we have 8 new Companies to Watch. Download your free copy of the Intel Report here. (Link)🎙️ I had a chance to catch up with Kyle Mountsier and Paul J Daly to discuss how Automotive Ventures is helping raise money for ASOTU through our new Investment Club. (Link)

🗞️ Automotive Ventures portfolio company Recurrent is now working with Edmunds to feature the Recurrent Report prominently on Edmunds' used EV inventory listings and within tens of thousands of used vehicle listings pages. (Link)

🎙️ It was a pleasure catching up with Mike Allen from Zeus Capital to discuss the state of the retail automotive channel and the future of automotive. Listen to our podcast below. (Link)🎙️ I'm looking forward to participating in the Auto Intel Summit and NRC Spring Summit April 18-20 in Raleigh, NC. (Link)🎙️ On this week's Future of Automotive segment on CBT News we discuss Ford's new repossession patent and lithium-air batteries. (Link)🎙️ I'm excited to be back on the Ted Ings' Fixed Ops Roundtable® on May 15-18, 2023. (Link)

🌟 Solutios creates a dealer-owned, dealer-controlled merchant card processing ecosystem. They provide fully transparent reporting and an automated reconciliation process. 

(More here)

🌟BusRight is a safe & efficient school bus management platform that enhances student safety, streamlines bus communication, and manages routes at the touch of a button. (More here)

🛠️Aftermarket & Repair

ArcBest sold FleetNet America, its fleet maintenance and repair services business, to Cox Automotive Mobility Solutions for $100 million. FleetNet operates a network of more than 60,000 independent service providers throughout the U.S., Puerto Rico, Canada, and Mexico. (Link to article)

🛰️Air Mobility & Space

Jet Token, a private aviation booking and membership platform, and Oxbridge Acquisition Corp. (NASDAQ: OXAC), a publicly-traded SPAC, have entered into a definitive business combination agreement. The combined company will be named Jet.AI and its securities are expected to be listed on Nasdaq. (Link to article)PteroDynamics, an aircraft design and manufacturing company that develops innovative vertical takeoff and landing (VTOL) aircraft, announced the close of a $7.5 million Seed round, co-led by existing investor Kairos Ventures and new investors Lavrock Ventures and CS Venture Opportunities Fund. (Link to article)Skydio, the leading U.S. drone manufacturer and world leader in autonomous flight, raised a $230 million Series E round that brings their total funding raised to $562 million with a current valuation of over $2.2 billion. Skydio drones are now used by every branch of the U.S. Department of Defense, by over half of all U.S. State Departments of Transportation, by over 200 public safety agencies in 47 states, and across more than 60 energy utilities. (Link to article)🦾 Autonomy, Robotics & AI:

Torc Robotics, an independent subsidiary of Daimler Truck AG and a pioneer in commercializing self-driving vehicle technology, has signed an agreement to acquire Algolux. Torc is acquiring Algolux for its award-winning intellectual property and expertise in the areas of computer vision and machine learning. (Link to article)iMotion Automotive Technology, a developer and provider of AI automated driving solutions, is considering a Hong Kong initial public offering that could raise $200 million to $300 million. (Link to article)

⚡Electrification & Alternative Fuels

The California Energy Commission has recommended that Ample, a San Francisco startup developing battery-swapping infrastructure for electric vehicles, be awarded a $15 million grant.  (Link to article)Shell has announced an agreement to acquire evpass, the largest network of charging stations for electric vehicles (EVs) in Switzerland. This acquisition allows Shell to further expand its position for charging solutions for electric vehicles and offer customers access to the largest network of public charging stations in Switzerland. (Link to article)Australia-based start-up Recharge Industries is to take over collapsed UK battery venture Britishvolt after finalizing a deal with bankruptcy administrators. Britishvolt had planned a £3.8 billion high-volume battery production plant at a site making batteries for 300,000 electric cars per year. (Link to article)💵

 Finance & Insurance

Research into how to insure drones led to the creation of U.K. startup Flock, which uses real-time data to insure car fleets. Flock has now added a $38 million Series B funding. Flock uses telematics to allow customers to understand risk and identify high-risk drivers and routes. This helps them reduce crash frequency by as much as 10%. Safer driving is then rewarded with lower insurance premiums. (Link to article)🛴 Micromobility

Off the back of its $7.4 million Series A funding close, Velotric announced it will be doubling down on U.S. expansion with its privately owned e-bikes. Investors included Redpoint China Ventures, Fosun RZ Capital and UpHonest Capital. (Link to article)

🅿️Parking, Traffic & Smart City

Vend Park is an end-to-end digital parking solution that transforms parking for owners, operators, tenants, and visitors. The company announced a $3.8 million Seed round, led by Floating Point Advisors, and with investments from Crossbeam Venture Partners, APA Venture Partners, and Alumni Ventures, among others. (Link to article)

🚛Supply Chain & Logistics

Transmetrics, a state-of-the-art AI platform developed exclusively for the supply chain industry, has closed a €2.5 million funding round. Transmetrics' clients experienced an up to 25% reduction in transport costs while increasing their fleet utilization by up to 14% and maintaining high service levels. (Link to article)

🔗Vehicle Connectivity & Cybersecurity

Cambridge Mobile Telematics, the world’s largest telematics service provider, has acquired Amodo, an award-winning telematics company based in Europe. Amodo will adopt the CMT name. (Link to article)

🏎️ 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.