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

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

Existing strategic investors such as OEMs, dealers, distributors, fleet management, remarketing, insurance and software providers as well as family offices have supported the fund. The company said on Thursday that the proceeds from the round would be allocated exclusively to new investment.

FM Capital has already made seven investments from oversubscribed funds, including autonomous vehicle startup Gatic, cloud-based automotive retail platform Techion and e-commerce startup Revolution Parts.

Managing partner Mark Norman said in one, “We have maximized our maximum limit that we can increase, but have deployed a small portion of that amount, so we are still investing a lot more actively and in the next Will stay for a few years. ” Recent interview.

FM Capital launched in 2012 with a $ 40 million fund, which invested in auto commerce and dealership technologies as well as other comprehensive retail and enterprise software startups. Its second fund, which more than doubled to $ 90 million, is when FM Capital became an automotive-focused VC with interests in auto commerce, autonomy and sensors, connectivity, electrification and shared mobility. FM Capital typically invests between $ 5 million to $ 10 million in companies, which partners typically see as a “transformational solution in transportation” in the Series A phase. Norman said FM Capital would occasionally do the seed round later, with commercial traction and revenue, who noted that the firm had completed a seed deal, one of seven investments made so far in this new fund.

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

Looking ahead, Norman sees an increasing number of EVs and opportunities arising from other forms of propulsion in addition to internal combustion engines.

Norman said, “We see that a very big change is just taking place with propulsion, certainly very much inspired by the mandate of government around the world.” “Alternative fuels and delivery and related service infrastructure are currently undergoing a tonne flow. This is all from the technology that goes into propulsion in vehicles – which move, in large part, from internal combustion to EVs – and how it affects downstream service infrastructure, how it affects residual values, such as markets , And how you estimate and understand what a vehicle is worth over its lifecycle. “

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

Norman said a lot of software opportunities also continue, especially as more vehicles come into the market with embedded connectivity. He also noted additional opportunities in enterprise software.

“A very fragmented retail environment that was strong – whether we’re talking about car rentals, car dealers or fleet management – and their appetite for centrally operated tools and data is also much higher than in the past Is. This is a real opportunity on the enterprise software side of things. “

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