Autonomous Vehicle Startups Attract 76% of All Auto Tech Investment

Autonomous Vehicle Startups

Automotive tech startups are attracting close to $4 billion worth of investment since the start of 2017, according to a report by CB Insights. However, two-thirds of the amount, or 76 percent, are going into the pockets of startups developing technology for autonomous vehicles thus leaving other industry segment vulnerable to under-funding and respectively slower growth and progress.

Investment in Auto Tech is Booming

Investment in auto tech is booming in the past five years, increasing from $686 million in 2013 to the impressive $4.57 billion in 2017 to date. The self-driving vehicle industry is promising huge profits and lucrative return on investment for all parties involved in manufacture and distribution of autonomous cars, so large corporations and VC investors are eager to pour money securing a share of future profits.

(Image Source: CB Insights)

In fact, the bulk share of auto investment goes to companies that are developing assisted and autonomous driving as well as driver safety tools, connected vehicle/driving data, fleet telematics, and vehicle-to-vehicle communication. A growing percentage of those funds will end up at auto cybersecurity startups as adoption of self-driving vehicles grows and security becomes a real issue.
The number of deals across the industry is also a sign the market is in a bull run with the number of funding deals increasing from 45 in 2013 to 170 in 2017. Dollar financing is also on the increase reflecting the investment mood of leading manufacturers like GM and Ford as well as funding spree by new market entrants such as Waymo, Uber, Amazon, and other companies entering the autonomous vehicle market.

Larger Funding Rounds Ahead

A specific trend to watch is the growing money amount of individual funding rounds with Chinese startup NIO alone rising over $1.6 billion in 2017. They plan to develop connected autonomous electric vehicles and other tech startups may follow suit in the next few years along with established manufacturers.

While in 2015 the number of autonomous vehicle deal was half the number of deals in other segments, the past two years saw drastic increase in deals involving self-driving tech. Last year, the number of autonomous car deals surpassed all other auto tech deals for the first time in history and maintains its lead in 2017.

(Image Source: CB Insights)

Resource intensive tech such as sensors, vision, 3D mapping, data collection, and truck platooning will get even more funding in the next few years as these technologies become more practicable. In 2017, large funding rounds in these segments include companies like Nauto, which raised $159 million in Series B for AV data collection, LeddarTech – getting Series C funding worth $101 million for development of solid-state lidar sensors, and Peloton Technology that develops truck platooning and raised $60 million in Series B financing in 2017.

One should also bear in mind that a number of promising stealth startups are developing cutting-edge tech for autonomous vehicles and will need funding once they hit the market running.

More Auto Startups Get Further Financing

Seed funding is less than a third of all deals in auto tech in the past year but not because of lack of promising startups in the field. Startups that got seed funding in the last few years are getting further financing, which in turn increases the overall amount of non-seed funding. Overall, seed funding in the sector retains its last year levels.

Another symptomatic trend is that auto tech startups attract the attention of a more diversified pool of investors with new entrants including investors from the aerospace industry, semiconductor manufacturers, and companies that are less closely related to the automotive industry. All in all, we’ll see the autonomous vehicle sector attracting the bulk part of the auto tech funding for a few years from now.

By Kiril V. Kirilov

Signal Messenger: How to Successfully Resist Wiretapping Attempts

Signal Messenger: How to Successfully Resist Wiretapping Attempts

Successfully Resist Wiretapping Attempts Against the backdrop of events in the US, the popularity of the Signal secure messenger has grown sharply - from 6,000 to 26,000 downloads per day. This software uses strong cryptography ...
Future Image Cloudtweaks Compressor

Artificial Intelligence Communism

Artificial Intelligence Communism Our technological innovation and progress (especially in the digital space) continues to accelerate unbounded. Google has recently announced there ascension to “quantum supremacy” with the unveiling of it’s brand new Sycamore chip ...
Texture Cloud

Building a Cloud Roadmap

Cloud Roadmapping Why is it important to have a cloud roadmap? What's the best way to begin building a cloud roadmap? What points should a cloud roadmap include? Who should be included in the roadmap ...
Ronald van Loon

The Future of Work: Confronting One of the Biggest Challenges of the Next Decade

The Future of Work Technologies like artificial intelligence (AI), machine learning (ML), and automation in all of its forms can augment human workers and enable them to pivot to more valuable work, and perform their ...
Amazon's Varies Revenue Segments

Amazon’s Varies Revenue Segments

Amazon Revenue Amazon has become the largest retailer worldwide, however it is projected to make up less than 5% of U.S. retail sales by the end of 2020. While most people are already familiar with ...

PROXY SERVICES

The CloudTweaks technology lists will include updated resources to leading services from around the globe. Examples include leading IT Monitoring Services, Bootcamps, VPNs, CDNs, Reseller Programs and much more...

  • Smartproxy

    Smartproxy

    Smartproxy is a rising star in the constantly growing proxy market. Smartproxy offers awarded customer service, impressive performance, and is serious about your anonymity (yes, cybersecurity matters). The latest features developed by Smartproxy are 30 minute long sticky sessions and Google Proxies. Rumor has it, the latter guarantee 100% success rate

  • Bright Data

    Bright Data

    Bright Data’s network is one of the most robust of its kind globally. Here are its stark advantages: Extremely stable connection for long sessions (99.99% uptime guaranteed). Free to integrate with our Proxy Manager which allows you to define custom rules for optimized results. Send unlimited concurrent requests increasing speed, cost-effectiveness, and overall efficiency.

  • Rsocks

    Rsocks

    RSocks team offers a huge amount of residential plans which were developed for plenty of tasks and, most importantly, has been proved to be quite efficient. Such variety has been created on purpose to let everyone choose a plan for a reasonable price, online, rotation and other parameters.

  • Storm Proxies

    Storm Proxies

    Storm Proxies' network is optimized for high performance and fast multi-threaded tools. You get unlimited bandwidth. No hidden costs, no limits on bandwidth. Try Storm Proxies 100% Risk Free. If you are not happy with the service email us within 24 hours of purchase and we will refund you.