New Silicon Valley Fund to Invest in Automotive Startups
【Summary】Autotech Ventures, a Silicon Valley venture capital firm, said it had raised $120 million from automotive companies and financial investors for a fund that will invest in early-stage technologies enabling autonomous driving, improved cyber security in cars, entertainment systems and other automotive next big things.
July 12, 2017 — Autotech Ventures, a Silicon Valley venture capital firm, said it had raised $120 million from automotive companies and financial investors for a fund that will invest in early-stage technologies enabling autonomous driving, improved cyber security in cars, entertainment systems and other automotive next big things.
The fund will try to connect startup companies with its corporate investors, which include big automotive suppliers BorgWarner Inc. and Autoliv Inc., and two unidentified automakers, Autotech founders Quin Garcia and Alexei Andreev told Reuters ahead of Wednesday's announcement of the fund.
The fund already has investments in ride hailing company Lyft; Outdoorsy, which enables users to share recreational vehicles; and Work Truck Solutions, which designs software to help owners of commercial truck fleets track their vehicles.
Older transportation companies are looking for ideas on how to make money from vehicles after the initial sale, such as through sharing services. They also are interested in startups that could help them use data acquired from vehicles to sell insurance or locate and pay for parking, Garcia and Andreev said.
The new Autotech Ventures fund comes as vehicle manufacturers and suppliers are scouring the technology sector for talent and ideas but are wary of overpaying.
General Motors Co's estimated $1 billion acquisition of self-driving vehicle company Cruise Automation and Uber's purchase of self-driving truck startup Otto have accelerated this trend.
In the self-driving vehicle arena, the Autotech Ventures fund will focus on companies developing specific technology, "rather than a jack of all trades," Garcia said.
Autotech Ventures has also invested in Deepscale, a startup developing technology that processes the information a car gets from sensors about the surrounding environment, but is not trying to build an entire operating system for an autonomous vehicle.
Last week, Autoliv, Inc. has announced that it will invest $15 million into the Autotech Ventures fund. This investment is likely to complement the Stockholm, Sweden-based company's innovation strategies related to vehicle safety and autonomous driving.
Originally hailing from New Jersey, Eric is a automotive & technology reporter covering the high-tech industry here in Silicon Valley. He has over 15 years of automotive experience and a bachelors degree in computer science. These skills, combined with technical writing and news reporting, allows him to fully understand and identify new and innovative technologies in the auto industry and beyond. He has worked at Uber on self-driving cars and as a technical writer, helping people to understand and work with technology.
Self-driving Startup AutoX Applies for a Permit to Test its Vehicles Without a Human Backup Driver in California
General Motors & LG Chem Are Investing up to $2.3 Billion in New EV Battery Joint Venture
Hyundai Motor Co is Investing $52 Billion in Electric & Autonomous Vehicles and Mobility Services by 2025
Tesla Rival Lucid Motors Hosts an Official 'Ground-Building' Event for its New $1 Billion Arizona Factory
Polestar Enters Final Prototype Phase Before Production of the Mass-Market Electric Polestar 2
BMW to Build a New Auto Plant in China with Great Wall Motor to Produce the Electric MINI
With 200,000 Reservations Since Last Week, Tesla’s New Cybertruck Ignites Interest in Electric Pickups
London Revokes Uber’s License for the Second Time Citing a ‘Pattern of Failure’ Over Rider Safety
- Tesla Given Green Light to Start Building Vehicles at its Shanghai Gigafactory
- General Motors May Bring Back Hummer as a New Electric Truck Brand
- US Department of Transportation Issues Grants for 3 States for AV Research
- Lidar Startup Ouster Introduces a More Affordable 32-Channel Lidar Sensor for Self-driving Cars
- Ford Motor Co to Deploy its Self-Driving Cars in Austin, TX with Argo AI
- NACTO Introduces New City-Planning Guide for AVs, Takes a More Skeptical Approach
- BMW i5 and iX1 Electric Vehicles Confirmed
- Daimler & Torc Robotics Begin Testing Autonomous Trucks on Public Roads in the U.S.
- Goodyear is Testing its New ‘Intelligent Tires’ with Mobility Startup Priva
- Waymo Puts out 14 Minute Video for First Responder Precautions