How major automakers and aircraft manufacturers are moving

Palo Alto CA

18 August, 2021

5:26 AM

Description

How major automakers and aircraft manufacturers are moving fast to innovate with smart strategies and big investments By Louis Lehot, Esq., Foley & Lardner LLP. The future of the auto industry has arrived, driven by technologicaladvances that once seemed to be only science fiction. Thistechnology, combined with an increased focus on sustainability, hasled to a boom in investment in startups by major automakers.Today, automakers are increasingly funding startups producing nextgeneration batteries and electric vehicles, technology related toautonomous cars and trucks, as well as electric aircraft. Accordingto data from Crunchbase, automakers led $9.6 billion in privatefunding rounds for startups since the beginning of 2020. This investment by automakers is being spurred by a need toinvest in the future, expand their tech capabilities and capitalizeon the transformation of the industry. Some automakers choose toinnovate in-house, however, those who choose to invest in startupscan still achieve these goals and contribute to industry innovationwithout using up all their R&D budget. They can also cast a widernet and help to minimize risk. Crunchbase reported that since 2020, Volkswagen has beenthe most active automaker investing in startups, participating in24 deals, with the largest concentration of funding in batteries. Theywere the lead investor in $3.4 billion in funding for Northvolt,a Swedish company that manufactures lithium-ion batteries.Crunchbase data also showed that Toyota came in second place,participating in 20 deals since 2020 and leading a $590 millionSeries C for electric aircraft maker Joby Aviation. Toyota hasstated their VC fund is investing in startups that help them refineprocesses, improve supply chain management and bring betterrobotics to their factories. Read More Here.