Automotive World’s special report on venture capital interests in future mobility start-ups outlines the opportunities and challenges for those seeking to nurture specialist companies with a view to exiting or acquiring them when the time is right.
Corporate venture capital (VC) has become an essential component of the modern automaker. With sales stagnating and CASE development accelerating, mechanical engineering and manufacturing experience is no longer sufficient. Software expertise and service offerings are essential for new revenue streams, and flexible, innovative start-ups offer incumbents an easy solution.
Private VC is also investing in future mobility start-ups for much the same reason, but with greater freedom to operate than corporate VC. A number of significant investors have emerged to tap into the potential offered by this exciting sector.
Investors hunt in packs, and FOMO (the fear of missing out) can create additional hype, inflating the potential of any given trend. Ultimately, few investments go on to headline-grabbing success. For such an outcome, the investor must be able to offer something unique to the start-up company, and not just be guided by FOMO.
This report presents insight from corporate VC and independent investors, and looks at why CASE—as broad as it is—is generating growing interest in future mobility start-ups.
In this report:
- Executive summary
- What do investors look for in future mobility start-ups?
- Toyota AI Ventures on the three elements of a mobility start-up investment
- Traditional Tier 1s in investment scramble for CASE-based experts
- After the initial rush, micromobility companies must mature to secure investment
- Why venture capital wants both automaker experience and start-up agility
- Future mobility start-ups must target ‘pain points’ says VC firm
- Mobility start-up success hinges on the team, not just the product
‘Special report: What do investors look for in future mobility start-ups?’ opens with an article commissioned exclusively for Automotive World by Alberto Lodieu, Manager at PTOLEMUS Consulting Group, and presents insight from a range of leading stakeholders, including Toyota AI Ventures, ZF, Autotech Ventures, Fraser McCombs Capital, Accenture and Navigant Research.