As we progress through Q1 of 2019, let’s look back on 2018 and analyze how funding in the transportation technology sector compares to previous years. The graphic below shows the total annual transportation technology funding amounts over time.
As the graphic demonstrates, 2018 saw a drop in transportation technology funding compared to the previous year. The $38B in 2018 represents a 23% decrease from the $49B in 2017, which was the highest year on record. However, transportation technology funding is still on an upward trend, with a 5-year CAGR of 63% from 2013 to 2018. Some of the notable funding events in 2018 include a $2B round for Uber, a $1.5B round for Go-Jek, a $1B round for Grab, and a $1B round for Lucid Motors.
The transportation technology industry has seen $158B in total all time funding. Let’s now examine the investors financing the transportation technology sector and identify the most active firms.
The graphic below highlights transportation technology investors based on the number of investments made in the sector. If an investor participates in two investment rounds in the same company (such as a Series A and Series B), that would qualify as two investments for this analysis.
As the graphic demonstrates, Y Combinator has made the most investments in the transportation technology sector with 42 investments. Sequoia Capital follows with 41 investments. Examples of companies that Y Combinator has invested in include Convoy, Embark Trucks, Skip Scooters, and Automatic. The three CVCs rounding out the list include Tencent Holdings, BMW i Ventures, and Qualcomm Ventures.
We previously highlighted that transportation technology funding has remained stable in recent quarters. This blog post will take a closer look at the funding trends within the individual transportation technology categories. Per our analysis, we notice two important observations:
The Smart Mobility category leads the sector in Q3 funding
The Ride Hailing category leads the sector in all-time funding
We’ll highlight these observations with some graphics and discussions below.
The Smart Mobility Category Leads Transportation Technology In Q3 Funding
To start off, let’s review the amount of funding raised this quarter per category within transportation technology.
The above graphic highlights that the Smart Mobility category leads the sector in Q3 funding with $4.4B. The Ride Hailing category follows in the second place with $2.8B.
Smart Mobility companies provide solutions for increasing sustainability in conducting transportation within cities. These solutions include all electric vehicles and distributed energy systems that recharge vehicles. Some example companies in this category include Gogoro, ChargePoint, Cityscoot, and Zagster.
Let’s now see how the transportation tech categories’ funding compare with each other historically.
The Ride Hailing Category Leads the Sector in All-Time Funding
The graph below shows the all-time funding for the various transportation technology categories. The Q3 funding and growth rates of these categories are also highlighted.
As the bar graph indicates, the Ride Hailing category leads transportation technology in total funding at $68B. Its funding is almost twice the funding of the next category, Smart Mobility at $37B.
Ride Hailing companies enable consumers to schedule a ride either in real time or in the future. They include transportation network companies, white label mobile applications, and website booking portals. Some example companies in this category include Uber, Didi Chuxing, Lyft, and Ola Cabs.
In summary, the Smart Mobility category leads transportation technology in Q3 funding, while the Ride Hailing category is the clear leader in total funding.
Ride Hailing dominates the sector in all-time funding
We’ll explain these takeaways with some graphics and discussions below.
Autonomous Cars Leads Transportation Technology in Q2 Funding
To start off, let’s look at transportation technology category funding in Q2.
The above graphic shows that the Autonomous Cars category leads the sector in Q2 funding with $3.5B. The Ride Hailing and Smart Mobility categories follow in the second and third places with $2.7B and $2B, respectively.
So we’ve witnessed how different transportation technology categories stack up in their Q2 funding. But how do these categories’ funding compare with each other historically? Let’s investigate that in the next section.
Ride Hailing Dominates Transportation Technology in All-Time Funding
The graph below shows the all-time funding in different transportation technology categories. The quarterly funding and growth rates of these categories are also highlighted.
The bar graph in the above graphic indicates that Ride Hailing absolutely dominates the sector in all-time funding with $66B. Its funding is more than twice the funding in the next category, Smart Mobility.
The line graph demonstrates that Intelligent Transit had the highest growth rate in Q2, more than doubling its funding.
Conclusion: Many Transportation Technology Categories Are Seeing Growth
In summary, we have analyzed the transportation technology funding amounts in different categories. We’ve discovered that Autonomous Cars leads the sector in Q2 funding, while Ride Hailing dominates in all-time funding. It’ll be interesting to see if any other transportation technology categories will catch up in the rest of 2018.
As we have previously shared, the Transportation Technology startup sector is seeing a lot of activity. How have its funding trends evolved over time? On our Transportation Technology research platform, we have analyzed the data through 2017 and can conclude that the investments in transportation tech are growing at a significant clip.
We have come to this conclusion from the following three takeaways:
Transportation tech funding amounts are growing exponentially
The number of transportation tech deals are increasing steadily
The number of investors in the space are trending upward
We will illustrate these takeaways with a series of graphics to show the trend of transportation tech investments over time.
Let’s start off by examining the annual transportation tech funding amounts, stacked by quarters.
This graph illustrates that transportation tech funding saw explosive growth at the annual level. Specifically, the funding in 2017 was 193% of that in 2016. In addition, the CAGR in funding amounts from 2012 to 2017 is an astonishing 103%.
We have seen that transportation tech funding is showing strong growth, but what about the total number of deals?
The following graph shows us the annual number of transportation tech startup funding deals, stacked by quarters.
The above graphic illustrates that the number of transportation tech funding events increased steadily over the past few years. In fact, the CAGR in funding events from 2012 to 2017 is 18%. Moreover, the last 4 years have seen more than 300 funding events in each.
We have seen that transportation tech funding amounts skyrocketed and its funding events have shown overall steady growth. Let’s now analyze the investor interest in the sector to complete the picture on the state of transportation tech investments.
Transportation Tech Investor Interest on Upward Trend
To gauge how investors are feeling, let’s look at the total number of transportation tech investors who participated in each financing round.
This graph shows that transportation tech investor interest has been on a general upward trend for the past few years. The CAGR in the number of participating investors from 2012-2017 is 25%, and the 2017 total has increased from the 2016 total by 20%.
Conclusion: Investments in Transportation Technology Have Grown Significantly Over Time
In summary, the above graphics show that Transportation Technology funding amounts grew exponentially year over year. In addition, both its funding events and investor interest have been on a general upward trend as well. These takeaways lead us to conclude that transportation tech funding has experienced significant growth over time. The large growth in funding amounts paired with a steady count in funding events implies that the average deal size is growing. It’ll be interesting to see if this trend continues in 2018.
What are your thoughts on this? Let us know in the comments section below.