Silicon Valley capital firm Autotech Ventures raised $120 million from automotive companies and financial investors. For a fund that will invest in startups working on transportation services and digital vehicle technology.
The fund already has investments in ride service company Lyft, Outdoorsy. Enables users to share recreational vehicles and Work Truck Solutions. To design software and help owners of commercial truck fleets track their vehicles.
The fund will try to connect startup companies with its corporate investors. Also include big automotive suppliers BorgWarner Inc and Autoliv Inc, and two unidentified automakers.
Scouring the technology sector for talent and ideas
Older transportation companies are looking for ideas on how to make money from vehicles after the initial sale. Such as through sharing services. They also are interested in startups that could help them use data acquired from vehicles to sell insurance or locate and pay for parking.
The new Autotech Ventures fund comes as vehicle manufacturers and suppliers. Scouring the technology sector for talent and ideas but are wary of overpaying.
General Motors Co’s estimated $1 billion acquisition of self-driving vehicle company. Cruise Automation and Uber Technologies Inc’s purchase of self-driving truck startup Otto have accelerated this trend.
Meanwhile, Autotech Ventures has invested in Deepscale, a startup developing technology that processes the information a car gets from sensors. The surrounding environment but is not trying to build an entire operating system for an autonomous vehicle.