BY AUTOMOTIVE VENTURES | 13 FEBRUARY 2023 | VIEW ONLINE ➡️

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What I'm Reading (news from the past week):

Higher interest rates and falling used-car prices are making it even more difficult for customers to make the math work on a new vehicle monthly payment. (Link)More quickly than seemed possible a few months ago, sticker prices for electric vehicles are falling closer to the point where they could soon be on par with gasoline cars. (Link)The 125 page UP.Partners Moving World Report identifies the macro and micro trends in mobility, and estimates that mobility venture capital has seen a 30x increase in funding since 2013. (Link)Bank of America launched a new bundle program allowing EV buyers to finance their electric vehicle chargers alongside their auto loans. (Link)Volvo Cars will introduce a direct-to-consumer sales model in the UK by the end of this year. And the Swedish automaker intends to export the concept to additional markets. Former Dyson exec and Volvo's newly minted CEO, Jim Rowan, said he believes the traditional way of selling big-ticket vehicles through third parties is "flawed." (Link)Hyundai will offer monthlong subscriptions to its popular electric vehicles as part of a program called Evolve+. Shoppers can select their vehicle and payment terms via mobile app, and then pick the vehicle up at the participating dealership. (Link)In the future, the energy needed to run the powerful computers on board a global fleet of autonomous vehicles could generate as many greenhouse gas emissions as all the data centers in the world today. (Link)Automakers promising billions in new software revenue by the end of the decade don’t want to share their data, or they cherry-pick data to share that, by itself, isn’t all that useful to outside buyers. (Link)In their "Tech Valuations 2022 Report", CB Insights reports that Seed Stage company valuations (Seed Stage is where Automotive Ventures typically invests) have been pretty resilient vs. other fundraising stages. (Link)U.S. Rep. Neal Dunn, R-Fla., reintroduced a bipartisan bill mandating that vehicle owners and independent repair shops have the same access to repair and maintenance tools and data as automakers and their franchised dealerships. (Link)The dirty little secret of EV manufacturing is that it will be nearly impossible for EVs in the U.S. to meet the requirements outlined in the Inflation Reduction Act (IRA). Chinese companies control 80% of all critical battery production minerals, including  80% of the world’s cobalt refining capacity, 82% of the world’s graphite production and 93% of global manganese refining. (Link)The battery industry's leaders are all based in Asia. The basic economics of battery making is truly a game of scale. (Link)5.9 million tons of lithium, a crucial mineral for the manufacturing of electric vehicles, has been discovered in India, which now has the fifth-largest lithium reserves in the world, just ahead of the United States. (Link)The University of Michigan estimates sufficient lithium resources exist to support vehicle electrification demand until at least the end of this century, based on a 90% to 97% recycling rate for lithium-ion EV batteries. Given the nascent technology and current challenges in recycling these batteries, this availability is shortened significantly. (Link)China’s big lithium miners are set to reap record earnings after booming demand for the electric vehicle battery material sent prices surging to an all-time high last year. Chinese prices for lithium carbonate, a refined form of the material used in EV batteries, peaked in November after jumping around 15 times from lows in 2020. (Link)Electric car batteries can get a second life storing solar power. (Link)One incentive for buying an electric vehicle is the potential to make money by charging or discharging at certain times. EV owners could profit via an arbitrage: purchasing electricity at low off-peak rates and selling it back at peak times when rates are highest. (Link)

Some automakers are now promising anyone with an EV an enormous home battery on wheels that can reverse the flow of electricity to power the entire home through the main electric panel. (Link)Some grid operators are already struggling to keep up with electricity demand in certain areas and at certain times. The required investments will likely result in higher electric rates. (Link)As the number of planned full-electric and hybrid models rises, so is the complexity facing supplier program managers — a new reality that is translating to higher costs and missed timelines for companies already reeling from supply chain woes. (Link)Michelin began investing in RFID technology a decade ago, and by 2024 all of their tires will be equipped with RFID so the company can further integrate its tires with automakers’ platforms. (Link)Have a great week,Steve Greenfield

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🎙️ Steve was quoted in Automotive News this week regarding the big automotive DMS companies' interest in making "tuck-in" acquisitons. (More Here)📰 On this week's "Future of Automotive" segment on CBT News, Steve Greenfield outlined some of the challenges as the industry evolves from Internal Combustion Engine (ICE) to Electric Vehicle (EV).🎙️Steve moderated this week's Reuters panel on "The Digital Dealership of the Future".(More Here)

🌟 PartsTech enables installers to buy millions of products from a network of over 27,000 parts suppliers locally & nationally. No more wasted time on the phone or checking multiple websites...PartsTech helps installers find the right part, at a fair price, 24/7. (More here)

🌟 EHVACS is the world's first heat pump/air conditioning unit and electric vehicle charger in one that aims to solve the problem of EV charger rollout lagging far behind EV adoption by providing a revolutionary, patent-pending technology. EVHACS will install your EV charger inside your home’s heat pump or AC unit. (More here)

✈️ Air Mobility & Space:

Portside allows aircraft operators to share schedules, financial and maintenance data, and other key aircraft information with owners, banks, and insurance companies through a web-based portal. Portside has raised $50 million in a Series B funding round led by Insight Partners, with participation from existing investors including I2BF Global Ventures, bringing the company’s total raised to more than $70 million. (Link to article)Zeitview (formerly DroneBase) has raised $55 million to further develop its air and ground data capture tech. Led by Valor Equity Partners with participation from Union Square Ventures, Upfront Ventures, Euclidean Capital, Energy Transition Ventures, and Hearst Ventures, the tranche brings Zeitview’s war chest to $114 million. Zeitview was founded in 2014, seeing an opportunity to use airborne robotics and sensors to capture data about how assets — for example, solar panels and turbines — change over time. (Link to article)

🦾 Autonomy, Robotics & AI:

Spartan Radar, focused on leveraging radar technology for driver-assist systems and self-driving vehicles, closed its $17 million series B funding round, led by 8VC. Other investors in the round include Microsoft, Prime Movers Lab, MaC VC and Gaingels. (Link to article)

⚡ Electrification & Alternative Fuels:

Startup Liminal, which makes battery inspection systems for the manufacturing process, raised $17.5 million in its series A2 funding round. ArcTern Ventures, a climate-focused venture capital fund based in Toronto, led the funding round. Liminal added two new investors in Northvolt, a Swedish battery developer and manufacturer, and the Ecosystem Integrity Fund. (Link to article)

Estonian startup VOOL has closed out a €1.7 million seed round to extend manufacturing of its private property EV chargers into additional European markets. Former Estonian president Kersti Kaljulaid is backing this fundraise alongside lead investor Specialist VC, also based in Estonia. The round is completed by Opus11 VC and Startup Wise Guys. (Link to article)Canoo has agreed to sell 50 million shares at a steeply discounted price as the cash-strapped EV company seeks the money it needs to keep its operations running. (Link to article)Nissan Motor Corporation will buy a stake of up to 15% in Renault Group's electric-vehicle business Ampere. The alliance's junior partner, Mitsubishi Motors, will also consider investing in Ampere. (Link to article)Indian electric vehicle (EV) distribution and financing platform Turno has raised $13.8 million in its Series A funding round led by US-based venture capital firms B Capital and Quona Capital.  Alteria Capital and InnoVen Capital India also participated in the round, while existing investors Stellaris Venture Partners and Avaana Capital re-upped. (Link to article)Faraday Future announced receipt of the $50 million first payment from a recent financing round of $135 million. The FF 91 Futurist features an industry-leading 1,050 horsepower, an EPA-certified range of 381 miles, 0-60 mph in 2.27 seconds, a unique rear cabin intelligent Internet system, and a revolutionary user experience designed to create a mobile, connected, intelligent, and luxurious third Internet living space. (Link to article)FLEETCOR, a leading global business payments and spend management company, announced the acquisition of Mina, a cloud-based electric vehicle (EV) charging software platform. Financial details of the transaction were not disclosed. (Link to article)

ABB E-mobility, a global leader in electric vehicle (EV) charging solutions, has signed an agreement with four minority investors to raise an additional CHF325 million in funds, in exchange for a total shareholding of approximately 12 percent in the company. (Link to article)Battery management and materials processor Cirba Solutions received a $50 million minority investment from Tokyo-based Marubeni Corporation. (Link to article)Zypp Electric, an Indian startup that offers an EV-as-a-service platform catering to e-commerce companies and gig workers, has received a $25 million investment led by Taiwan’s battery-swapping giant Gogoro. (Link to article)

⚓️ Maritime:

Finnish startup Skipperi is on a mission to use tech to make boating more accessible. Based in Helsinki, the team has just secured a €7 million Series A and now plans to bring its sharing and subscription platform to Australia and the US. The round was led by Yamaha Motor Co., with Baltiska Handels Sverige, Matu Capital, and HP Capital also participating. This round brings their total funding to €12.6 million. (Link to article)

🛴 Micromobility:

WeMo Scooter, a pioneer in urban mobility technologies, announced a Series A+ round led by AppWorks, with participation from Taiwan National Development Fund, bringing the total amount raised this round to $15 million. (Link to article)Berlin-based electric scooter sharer emmy sharing has acquired the German business of competitor felyx. Emmy says this will make it the largest sharing provider for e-scooters in the German market. Emmy is integrating a fleet of 1,500 electric scooters into its existing operations. (Link to article)

📳 Shared Mobility & Subscriptions:

Electric car subscription service Onto raises a new credit funding line of £100 million from global investment group Caisse de dépôt et placement du Québec (CDPQ) and independent asset manager Pollen Street Capital, boosting its mission to accelerate electric car adoption and provide a flexible alternative to the traditional car ownership model. (Link to article)

🚛 Supply Chain & Logistics:

WiseTech Global (ASX:WTC), developer of leading logistics execution software CargoWise, announced its acquisition of Envase Technologies, a leading provider of transport management system software for intermodal trucking, drayage (container haulage) and landside logistics in North America in a transaction valued at US$230 million. Envase is being acquired from private investment firm and supply chain investor Firmament, and a small number of other sellers. (Link to article)GoFreight, a Los Angeles-based provider of cloud-based software for the freight forwarding industry, raised $23 million through a Series A funding round. FLEX Capital and Headline led the round, with participation from FX Ventures, Palm Drive Capital, Mucker Capital, Cornerstone Ventures, and Red Building Capital. (Link to article)Freightify, focused on providing pricing data to freight forwarders, wants to make the process as simple as comparing airfare with its vertical SaaS platform. The Singapore-based startup has raised a $12 million Series A led by Sequoia Capital India, with participation from Trail Mix Ventures and Alteria Capital. The round also included returning investors Nordic Eye Venture & Growth Capital and Motion Ventures (Link to article)WARP, a tech-powered freight network specializing in middle-mile solutions, raised $5.7M in additional Seed funding. The round, which brought total funding raised to date to $8.1M, was led by MaC Venture Capital, Bonfire Ventures, and Frontier Venture Capital with additional contributions from some of the previous investors. (Link to article)

🔗 Vehicle Connectivity & Cybersecurity:

Car IQ, a leader in vehicle payments, added $15 million to their Series B. Founded in 2016, \Car IQ Pay is accepted at over 21,500 fuel stations nationwide including Shell, Sunoco and others across the US. (Link to article)

Otonomo, a connected automotive company that has seen its stock price plummet since going public in 2021, has announced that it is coming together with Urgently, a roadside assistance tech provider, in a reverse merger. (Link to article)

🏭 Vehicle Production & Assembly:

CapGrid, a B2B cloud manufacturing startup for precision parts and components, raised $7 million led by Nexus Venture Partners. Existing investors Axilor Ventures and Anicut Capital LLP also participated in this round along with angel investor Deepak Jain, Senior Partner at Bain and head of the automotive practice in India. CapGrid is building a digital supply network with an advanced technology infrastructure, partnering with hundreds of Tier II manufacturers to get precision parts and components sourced, manufactured, and delivered to customers' assembly lines. (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 new The Automotive Ventures Investment Club (AVIC)📈 Are you a Dealer Principal interested in adopting and investing in new technology, 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.