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.
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.
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.
The Transportation Technology sector has seen a lot of activity over the past few years. How does its overall exit activity trend over time? On our Transportation Technology research platform, we have analyzed the data through 2017 and can conclude that transportation tech exit activity continues to rise over time.
This observation was derived from two takeaways:
Transportation tech exit activity shows strong growth at the annual level
At the quarterly level, transportation tech exit activity is also on an upward trend for most quarters
We’ll illustrate these takeaways with two graphics that show transportation tech exit activity trends over the years.
Let’s start off by examining the transportation tech exit events from 2011 to 2017. Exit events include both acquisitions and IPOs. The below graph highlights the number of transportation tech exit events by year stacked by quarters.
This graph illustrates that Transportation Technology exit activity is showing strong consistent growth at the annual level. Specifically, the CAGR in exit activity from 2012 to 2017 is 59%. In addition, the number of exits in 2017 was 105% of that in 2016.
Let’s now see if the exit activity’s growth trend holds at the quarterly level as well.
Quarterly Transportation Technology Exit Activity On Upward Trend for Most Quarters
Let’s now look at the graph of transportation tech exit events by quarter.
The above graph shows that transportation tech exit activity is on an upward trend for most quarters. As expected, there were some outlier spikes and dips from quarter to quarter.
Conclusion: Transportation Technology Exit Activity Continues to Rise Over Time
In summary, we can conclude that transportation tech companies are getting acquired and going public at an increasing pace over time–both at the annual and quarterly levels. 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.
The analyses below summarize where Transportation Technology innovations are occurring. The graphic includes data through August 2017.
The above map shows the number of Transportation Tech companies located in different countries. The United States ranks as the top country with around 550 companies.
The above map shows the amount of total Transportation Tech startup venture capital funding in different countries. The United States has the most VC funding at around $40B.
We are currently tracking 1189 Transportation Technology companies in 17 categories across 66 countries, with a total of $94.9B in funding. Click here to learn more about the full Transportation Technology market report.
The following graph shows average and median age in the Transportation Technology sector. The graphic includes data through August 2017.
The above graph summarizes the average age and median age of companies in each Transportation Technology category. The V2V Communications, Intelligent Transit, and Infotainment categories all have the highest average age at around 21 years. The V2V Communications category also has the highest median age at around 19 years. On the other hand, the Auto Ownership category is the youngest Transportation Technology category with an average age of around 5 years and a median age of around 4 years.
We are currently tracking 1181 Transportation Technology companies in 17 categories across 66 countries, with a total of $92.1 Billion in funding. Click here to learn more about the full Transportation Technology market report.