Autotech Ventures will use its newly closed $230 million fund to broaden past its basis of early-stage floor transportation startups and put money into what the agency believes are the following huge alternatives in automotive and mobility.
Fintech, logistics, provide chain and the round financial system are on the high of the listing.
The $230 million fund, its third since launching in 2017, shall be used to put money into seed by means of Sequence C mobility-related startups, in line with the corporate. A mix of economic and company LPs, together with Allison Transmission, American Axle, Iochpe-Maxion and Shell participated within the fund.
“We’re nonetheless a floor transportation-focused agency and we’ve got a really comparable technique [with this fund],” Alexei Andreev, Autotech Ventures managing director informed TechCrunch. “On a high-level, it’s similar as Fund 1 and Fund 2. Nevertheless, one of many quickest areas of development is SaaS-enabled fintech. Auto commerce is inefficient and there are giant pockets of revenue to seize.”
The agency is especially fascinated about transportation-related fintech ventures which might be poised to develop throughout a recession.
“We made a prediction that in the end there shall be a recession and we recognized areas that profit when the financial system softens, Andreev stated, noting that this newest fund invested in Yendo, a Dallas-based startup (previously often known as Otto) that lets prospects borrow in opposition to their automobiles on the similar rate of interest as customary bank cards.
Autotech Ventures’ earlier fintech investments embody U.Ok.-based purchase now, pay later startup Bumper and Carpay, a purchase right here, pay right here mortgage servicing SaaS platform for automotive sellers.
Andreev stated the agency can be investigating funding alternatives within the round financial system, a nascent trade centered on discovering methods to reuse supplies and merchandise. Round financial system startups have garnered an growing quantity of consideration and funding as automakers transition away from gas-powered automobiles and in direction of EVs.
Autotech Ventures can be cautiously wading into generative AI, though Andreev was fast to notice that the corporate has not made any investments in that space.
Autotech has greater than $500 million underneath administration and has invested in additional than 40 companies.
Among the agency’s investments embody laptop imaginative and prescient startup DeepScale (which was acquired by Tesla), Lyft, used automobile market operator Frontier Automotive Group, Drover, Outdoorsy, Swvl, parking app SpotHero and Xnor.ai, which Apple acquired in January 2020. 5 of these startups have gone public, together with indie Semiconductor and Volta Charging.