In a typical yr, major automakers participate in startup funding rounds value several billion dollars. And so far, 2024 has not bucked that trend.
According to Crunchbase datathe largest global car manufacturers 1 and their affiliated enterprise funds have joined at least 52 startup funding rounds this yr, with a combined value of nearly $2.8 billion. In terms of deal count, the pace of activity is much like what we saw in the previous 4 years.
Automakers are also doing quite a few rounds. According to Crunchbase datahave served as lead investors in at least a dozen deals this yr, committing greater than $1.3 billion to the deal. That’s a bit slower than in other recent years, though, as the chart below shows.
Autonomous driving
In terms of investment topics, the autonomous driving sector absorbed the largest share of financing. The largest investment took place in June, when General Motors agreed to pump one other $850 million into its San Francisco headquarters Cruisewhich is restarting autonomous driving programs in several cities.
The next largest company was a company based in South Korea 42dotswhich describes itself as an “AI mobility company” focused on technology that allows autonomous vehicles. The company raised $183 million in Hyundai Motor Co.– And Kia engines– the round was conducted in June.
These big automaker-led funding events come amid a broader surge in funding for autonomous vehicles, an area that, despite its share of failures, still holds out the promise of one day having autonomous vehicles safely driving en masse on our streets.
Autonomy has been one of the few topics that has captured the attention of automakers. To illustrate this, we have used Crunchbase below data to create a list of the seven beneficiaries of the largest financing rounds led by automakers this yr.
Electric Vehicles and Sustainable Supply Chain
As the popularity of electrical vehicles steadily grows, automakers are also investing in startups offering more sustainable approaches to battery production and sourcing materials for them.
On this front, based in Oakland, California Lilac Solutionswhich is developing ion exchange technology for lithium extraction, is one of the largest fundraisers this yr. The company raised $145 million in a February round that included BMW i Projects among his supporters and plans to extract lithium from the Great Salt Lake.
Also this yr, InertiaGerman company developing environmentally friendly liquid fuel from CO₂ and hydrogen, has raised $129 million in a funding round from investors including Honda engines.
Car manufacturers that were particularly energetic
Crunchbase data shows that some automakers are much more energetic in striking deals with startups than others.
So far this yr, Toyota engine was one of the standout firms, participating in 10 startup financings, mostly in deals executed by its enterprise arm, Toyota’s ventures. Its activity is focused on the early stage, supporting rounds from seed to Series B. Most recently, Toyota Ventures participated in a $31 million Series A e-Zinca company that creates energy storage technologies.
General Motors and his VC branch, General Motors ventureswere also energetic, with eight startup investments, including Cruise. Most recently, General Motors Ventures participated in a $39 million Series B in July AccessoriesBritish startup focusing on improving battery performance.
BMW It also maintained its dealmaking momentum through its investment arm BMW i Ventures, with seven deals this yr. It recently participated in a Series A round for Simrcloud simulation company.
Hard times
This yr’s investment in recent businesses by automakers comes at a difficult time for the industry, with higher rates of interest pushing up acquisition costs and hurdles still looming over the long transition to electric vehicles.
Still, staying competitive means there is still interest in investing in and maintaining with startup technologies related to hot topics like autonomous driving or sustainable electric vehicle production.