Connect with us

Hi, what are you looking for?

Online Business Success

FM Capital steps up automotive investments with new $150M fund – TechCrunch

Vroom truck 01

First Move Capital, the Boulder-based venture firm that has invested in used car marketplaces Frontier Auto Group and Vroom as well as mobility-as-a-service startup Via, has closed a new $150 million fund that will focus on the automotive and transportation sectors.

Existing strategic investors such as OEMs, dealers, distributors, fleet management, remarketing, insurance and software providers as well as family offices have backed the fund. Proceeds from the round will be exclusively allocated to new investments, the company said Thursday.

FM Capital has already made seven investments from the oversubscribed fund, including autonomous vehicle startup Gatik, cloud-based automotive retail platform Tekion and e-commerce startup Revolution Parts.

“We hit our hard cap in the max that we could raise, but have deployed a minority of that amount so we’re still very much, actively investing and will be for the next couple of years,” Managing Partner Mark Norman said in a recent interview.

FM Capital launched in 2012 with a $40 million fund that invested in auto commerce and dealership technologies as well as other broader retail and enterprise software startups. Its second fund, which more than doubled to $90 million, is when FM Capital became an automotive-focused VC interested in auto commerce, autonomy and sensors, connectivity, electrification and shared mobility. FM Capital typically invests between $5 million to $10 million in companies with what the partners view as “transformative solutions in transportation” typically at the Series A stage. FM Capital will sometimes do a later seed round where there’s commercial traction and revenue, said Norman, who noted that in this new fund the firm has already completed one seed deal out of the seven investments it has made so far.

FM Capital has backed a total of 40 companies based in North America, Europe and Tel Aviv.

Looking ahead, Norman sees opportunities stemming from the rising number of EVs and other forms of propulsion besides internal combustion engines.

Advertisement. Scroll to continue reading.

“We see there’s just a huge transformation going on with propulsion, a lot driven, of course, by government mandates around the world,” Norman said. “Alternative fuels and distribution and related service infrastructure is going through a ton of flux right now. That’s everything from the technology going into propulsion in vehicles — that shift from internal combustion to in large part, EVs — and how that affects downstream service infrastructure, how it affects marketplaces like residual values, and how you estimate that and understand what a vehicle is worth over its lifecycle.”

For instance, Norman pointed to FM Capital’s latest investment into a startup called Indigo Technologies, which has developed a vehicle platform with an in-wheel motor and suspension that frees up space.

There also continues to be a lot of software opportunities, especially as more vehicles hit the marketplace with embedded connectivity, Norman said. He also noted additional opportunities in enterprise software.

“What had been a very fragmented retail environment continues to consolidate — whether we’re talking about car rentals, car dealers or fleet management — and their appetite for centrally driven tools and data is also much higher than that in the past. That’s real opportunity on the enterprise software side of things.”

Source link

Click to comment

Leave a Reply


Top Stories

Crypto exchange Binance has signed a memorandum of understanding with the Securities and Exchange Regulator of Cambodia (SERC), according to a June 30 announcement. Binance...

Top Stories

When cryptocurrencies like Bitcoin (BTC) go through bear phases like the one we currently find ourselves in, the idea of earning passive income from...

Online Business Success

A representational image of the Federal Board of Revenue building. — APP/File The Federal Board of Revenue (FBR) announced that the last date for...

Top Stories

Bitcoin (BTC) needs to go lower before putting in a macro bottom, one of the market’s most accurate indicators shows. Data from sources including...


In a nutshell: Intel’s accelerated computing group has started shipping its second-gen Blockscale ASIC for SHA-256 cryptocurrencies like Bitcoin. The launch is months ahead...

Top Stories

Expected to reach a market size of $128 billion by 2028, the longevity sector is no longer something that those outside the medical world...


You May Also Like


Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...