For this quarter’s funding analysis, let’s examine how average funding event sizes in the transportation technology sector are evolving. The graphic below shows the transportation technology average funding event size over time by quarter.
As the graphic demonstrates, transportation technology average funding event size in Q1 2019 was at $115M, which increased by 47% from the $78M last quarter. The average funding size has been on a general upward trend, with the average funding size last quarter about twice as large as it was 5 years ago. The top three funding events in Q1 2019 include a $1.5B round from Chehaoduo, a $1.46B round from Grab, and a $940M round from Nuro.
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.