Autotech Ventures’ new $230M mobility fund adds fintech, circular economy to its investment strategy

Autotech Ventures’ new 0M mobility fund adds fintech, circular economy to its investment strategy

Autotech Ventures will use its freshly closed $230 million fund to grow outside of its foundation of early-phase ground transportation startups and commit in what the agency thinks are the following huge possibilities in automotive and mobility.

Fintech, logistics, source chain and the round economy are at the major of the list.

The $230 million fund, its 3rd since launching in 2017, will be used to devote in seed by way of Series C mobility-similar startups, according to the company. A mixture of money and corporate LPs, such as Allison Transmission, American Axle, Iochpe-Maxion and Shell participated in the fund.

“We’re still a floor transportation-centered organization and we have a pretty similar system [with this fund],” Alexei Andreev, Autotech Ventures running director advised TechCrunch. “On a large-amount, it’s similar as Fund 1 and Fund 2. However, a single of the fastest spots of advancement is SaaS-enabled fintech. Automobile commerce is inefficient and there are huge pockets of financial gain to capture.”

The company is notably interested in transportation-linked fintech ventures that are poised to mature throughout a economic downturn.

“We manufactured a prediction that sooner or later on there will be a recession and we identified locations that advantage when the economic system softens, Andreev stated, noting that this most current fund invested in Yendo, a Dallas-based mostly startup (previously acknowledged as Otto) that lets clients borrow in opposition to their vehicles at the same desire level as common credit score playing cards.

Autotech Ventures’ former fintech investments incorporate U.K.-primarily based get now, spend later on startup Bumper and Carpay, a invest in in this article, pay back here bank loan servicing SaaS platform for motor vehicle sellers.

Andreev mentioned the company is also investigating investment chances in the round economic system, a nascent market targeted on acquiring approaches to reuse elements and products and solutions. Circular overall economy startups have garnered an growing quantity of attention and expense as automakers transition away from gas-powered vehicles and toward EVs.

Autotech Ventures is also cautiously wading into generative AI, whilst Andreev was speedy to take note that the firm has not made any investments in that location.

Autotech has extra than $500 million under administration and has invested in a lot more than 40 providers.

Some of the firm’s investments involve computer vision startup DeepScale (which was acquired by Tesla), Lyft, used motor vehicle market operator Frontier Auto Team, Drover, Outdoorsy, Swvl, parking application SpotHero and Xnor.ai, which Apple acquired in January 2020. 5 of those startups have long gone general public, including indie Semiconductor and Volta Charging.