Before becoming Automotive News’ retail technology reporter this year, I wrote about biotech, health care, medical devices and property and casualty insurance startups, as well as the venture capital driving each sector.
The most prominent investors typically came from large VC firms in Silicon Valley in California, New York or emerging startup hubs such as Austin, Texas, or Washington, D.C. International firms from places including Tel Aviv, Isarel; Paris; or London committed money to companies in the U.S. or are about to expand here.
Some large hospital groups, medical device firms, biotech companies and property and casualty insurers also joined the investment party through venture funds they created. Their strategy: to back promising technology they might acquire someday or at least use in their operations.
Some of those strategies carry over to auto technology and auto retail technology investing, but with interesting twists.
Silicon Valley is increasingly paying attention to the auto industry. Companies in the automotive space also have their own investment arms, including General Motors, BMW, Hyundai Motor Group and dealership management system company Reynolds and Reynolds.
Dealerships themselves also are increasingly getting into the venture capital game. One recent example attempts to democratize the VC model: Automotive Ventures’ $13 million DealerFund, which attracted 48 investors including dealership groups and some single dealerships. Most participants are midsize group owners with five to 25 stores. The average investment hovered around $250,000. Some DealerFund investors told me they wanted to help shape technology that they or the broader industry might find useful.
Having covered multiple industries, I’m struck by how the innovation drivers for each remain generally the same.