Average Funding by Transportation Technology Category – Q1 2017

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Average Funding by Transportation Technology Category
The above analysis summarizes the average company funding in each Transportation Technology category. The Ride Hailing category dominates the sector with around $440M in average funding per company. The Smart City/Mobility category is the runner-up with around $132M in average funding per company.

We are currently tracking 1009 Transportation Technology companies in 17 categories across 64 countries, with a total of $49 Billion in funding. Click here to learn more about the full Transportation Technology landscape report and database.

Average and Median Age by Transportation Technology Category – Q4 2016

Average and Median Age by Transportation Technology Category
Average and Median Age by Transportation Technology Category
The above graph summarizes the average age and median age of companies in each Transportation Technology category. The Intelligent Transit Systems category has the highest average age at around 24 years, followed by the V2V Communications category with an average age of 22 years. V2V Communications and Infotainment categories have the highest median age at 19 years, followed by Intelligent Transit Systems and Telematics categories with a median age of 16 years.
We are currently tracking 998 Transportation Technology companies in 17 categories across 64 countries, with a total of $47.6 Billion in funding. Click here to learn more about the full Transportation Technology landscape report and database.

Transportation Technology Market Overview – Q4 2016

Transportation Technology Market Overview Map

The above sector map organizes the Transportation Technology sector into 13 categories and shows a sampling of companies in each category.

Auto Clean Tech: Companies that create next-generation solutions seeking to make transportation for friendly towards the environment. Examples include technologies to increase fuel efficiency, lower emissions, and take advantage or renewable fuels.

Auto Fleet Management: Solutions for professional owners of large fleets of vehicles, enabling them to better optimize their total cost of ownership. Examples include solutions for tracking fleet locations, managing repairs and service, and fueling payment systems.

Auto Heads Up Displays (HUD): Technologies that bring “cockpit” style display technologies into the automotive realm. Examples include technologies based cell phones, mounted dashboard projectors, and windshield embedded devices.

Automotive Infotainment: Communication and entertainment services that are integrated/streamlined into an automotive experience. Examples include music libraries, voice activation, telephony, and voice-to-text, for both integrated and after-market solutions.

Automotive Telematics: Companies that provide car owners with better access to specific information about their car. Examples include on-board data readers, diagnostic tools, and notifications to mobile devices for enhanced safety features (such as road-side assistance).

Autonomous & Assisted Cars: Companies that provide various solutions that assist a human in driving a car or work to eliminate the need for a human behind the wheel. Examples include automotive LiDAR, automotive RADAR, and automotive artificial intelligence computing.

Auto Wireless Networking: Companies that offer solutions that help cars communicate wirelessly with the cloud. Examples include wireless chip sets, infrastructure monitoring devices, and data analytics software.

Car Sharing: Companies that provide for the collaborative consumption of cars, enabling consumers to share the cost of auto ownership. Examples include centrally administered micro-rentals and peer-to-peer shared ride arrangement portals.

Enhanced Auto Ownership: Companies that allow for new methodologies to buy, rent, and own cars. Examples include social networks dedicated to cars and car culture, mobile apps for scheduling auto maintenance, and streamlined services to buy/sell cars.

Individualized Insurance: Companies that optimize provide new methodologies for automotive insurance. Examples include comparison websites, metered payments via telematic devices, and personalized quotes based on specific user driving habits.

Intelligent Transit Systems: Companies that enable the sharing of information between cars and infrastructure (also sometimes referred to as V2I). Examples include solutions for collision avoidance, toll booth metering, and traffic routing management.

Mapping, Location, and Route Optimization: Companies that understand where a consumer is and providing recommendations based upon that specific location. Examples include providing local maps, localized advertising, and individualized directions.

Public Transit Enhancement: Companies that aim to encourage the use of public transit options. Examples include real-time tracking of buses, loyalty programs, and simplified ticketing options.

Ride Hailing and Scheduling: Companies that enable consumers to schedule a ride either in real time or for the future. Examples include website booking portals and on-demand mobile applications.

Smart City and Mobility: Companies that provide next generation solutions for increasing sustainability in how transportation is conducted within cities. Examples include all electric vehicles (from full size automobiles to smaller scooters), and distributed energy systems which make it easier for these vehicles to recharge.

Smart Parking Technology: Companies offering solutions that make it easier to park, usually in dense urban environments. Examples include software to manage parking space inventories, real-time inventory information, and mobile payment options.

Vehicle to Vehicle (V2V) Communications: Companies which allow for direct vehicle-to-vehicle communication. Examples include technologies for collision avoidance, route optimization, and maintaining the flow of traffic.

We are currently tracking 983 Transportation Technology companies in 17 categories across 63 countries, with a total of $47.5 Billion in funding. Click here to learn more about the full Transportation Technology landscape report and database.

Connected Transportation At a Glance

The following infographic summarizes the Connected Transportation market and all of its key metrics at a glance. You could see that it has 17 categories, 758 companies, and an average funding of $74 Million per company. At Venture Scanner, we are currently tracking over 758 Connected Transportation companies in 17 categories across 55 countries, with a total of $26.5 Billion in funding. To see the full list of 758 Connected Transportation companies, contact us using the form on www.venturescanner.com.

Connected Transportation At a Glance
Connected Transportation At a Glance

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

The State of User Based Insurance

Last year I wrote about how the first connected car killer app was already here in the form of User-Based Insurance (UBI). As a quick reminder, UBI is when an insurance company is able to measure exactly how you drive (via telematics) and provide you an insurance policy tailored to your specific habits. Drive aggressively and pay more. Drive safely and pay less.

Since it’s been a little while, it seems like a good time to share the latest thinking in the near, medium, and long term trends of UBI.

Near Term: Consumer Comfort

In an era of major data leaks and hacks (Sony, Target, etc.), there was a legitimate concern that consumers might not be all that comfortable sharing their personal data with yet another set of corporate giants.

However, as seen in the figure below, this fear seems to be misplaced. Consumer privacy concerns around UBI have dropped to 35% from about 42%, and 80% are cool with using UBI smartphone apps.

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Source: Towers Watson 2014 UBI Consumer Survey (link)

This is clearly a good sign for UBI providers. Telling Facebook your preferences so they can serve you up better ads is one thing – it’s not like you have to buy anything Facebook shows you. But a reasonable person could have argued that telling your insurance company how you drive was another thing entirely – this will directly impact your premiums! But, perhaps this is a function of Illusory Superiority, where people believe they’re better than average and therefore feel likely to experience a premium reduction.

Medium Term: Smartphones and Frictionless Business Models

An initial problem in UBI revolved around how the insurance companies were actually going to collect the telematics data. The first series of solutions, going back a few decades, involved highly bespoke “black boxes” with a complexity and price point best suited for large automotive fleet managers. The next solution involved using a device that connects to the On-Board Diagnostics port (known as OBD-II) available in all cars after 1996, which is a much simpler/cheaper device that consumers can easily install themselves.

Now, more and more insurance companies are starting to realize that consumers already carry around a device capable of taking UBI measurements – the smartphone. A quick read of Android’s developer guide around sensors shows that smartphone have about a dozen measurement metrics built in today, many of which can be used for UBI.

The use of already-existing-practically-ubiquitous smartphones as an entry point into UBI is also enabling new business models, such Try Before You Buy (as the image below from Frost & Sullivan shows).

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Source: Frost & Sullivan (link)

Previously, consumers had to get a piece of hardware and fiddle around with it until it worked. Now, with the smartphone, it’s just another app download. “Interested in seeing how UBI would impact your premiums? Want learn how to conserve fuel while driving? Just download our app for a free trial and see what you could save!”

Long Term: The Car as the Embedded Device

While smartphones may be king for a while, most of the smart money is on the car itself becoming the hub for UBI. Large tech players such as Google and Apple, which benefit greatly from the medium term focus on smartphones, are creating their own automotive-focused Operating Systems. That’s how powerful the automotive as a connected platform can be. The image below shows this future dominance.

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Source: Ptolemus Consulting Group (link)

At a basic level, this makes a lot of sense. UBI will be better served via more sensors throughout the car capable of higher accuracy measurements, and the smartphone can only go so far. Do policy issuers want to make sure drivers properly inflate their tires? You’ll have to work with the car directly to find that out.

Personally, I feel that UBI will always be multi-model. The expansion of embedded solutions in the car will optimize both automotive interfaces and UBI use-cases. However, it seems to be that an embedded solution coupled with a smartphone app to bridge the gap between driving and non-driving times would be even more powerful.

With consumers losing their privacy concerns, smartphones offering a frictionless entry point, and the future development of highly robust embedded sensors on the horizon, it looks like everything is coming up UBI.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. To learn more check out venturescanner.com or email info@venturescanner.com.

Number of Investments by Top Connected Transportation Investors

The following infographic summarizes the number of companies invested by the top Connected Transportation investors. You could see that KPCB, SV Angel, Sequoia Capital, and Fontinalis Partners are in the lead by having invested in 7 companies each. At Venture Scanner, we are currently tracking over 702 Connected Transportation companies in 17 categories across 42 countries, with a total of $24.9 Billion in funding. To see the full list of 702 Connected Transportation companies, contact us using the form on www.venturescanner.com.

Connected Transportation Investors' Investments
Connected Transportation Investors’ Investments

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.

The State of Connected Transportation in Six Visuals

We cover many emerging markets in the startup ecosystem. Previously, we published posts that summarized Financial Technology, Internet of ThingsBitcoin, and MarTech, Artificial Intelligence, and Retail Technology in six visuals.

This week, we do the same with Connected Transportation. At this time, we are tracking 702 Connected Transportation companies across 17 categories, with a combined funding amount of $24.7B. These are companies that are looking to revolutionize the way people move around and interact with their transportation options. The sector includes things like connected car technologies, smart infrastructure grids, and collaborative consumption enablers. To see the full list of 702 Connected Transportation companies, contact us using the form on www.venturescanner.com.

The six Connected Transportation visuals below help make sense of this dynamic market:

  1. Market Overview: Breakdown of Connected Transportation into categories.
  2. Number of Companies Per Category: Bar graph summarizing the number of companies in each Connected Transportation category.
  3. Average Funding By Category: Bar graph summarizing average company funding per Connected Transportation category.
  4. Venture Funding in Connected Transportation: Graph comparing total venture funding in Connected Transportation to the number of companies in each category.
  5. Global Breakdown of Connected Transportation: Heat map indicating where Connected Transportation companies exist.
  6. Median Age of Connected Transportation Categories: Bar graph of each Connected Transportation category by median age.

1. Connected Transportation Market Overview

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Ride Hailing and Scheduling: Enable consumers to schedule a ride either in real time or for the future. Usually integrated with user profile and mobile payment options and sometimes including ranking systems.

Smart City and Mobility: Next generation solutions for increasing sustainability in how transportation is conducted within cities. Examples include all electric vehicles (from full size automobiles to smaller scooters), and distributed energy systems which make it easier for these vehicles to recharge and stay mobile.

Automotive Telematics: Telematics provide car owners with better access to specific information about their car. Examples include sensor reading histories (telemetry), diagnostics, and enhanced safety features (such as road-side assistance). Includes both integrated and after-market solutions.

Auto Fleet Management: Solutions for professional owners of large fleets of vehicles, enabling them to better optimize their total cost of ownership (tracking, servicing, fueling, etc.).

Individualized Insurance: Companies that optimize insurance costs, such as comparison websites and technologies that allow for personalized quotes (such as Pay As You Drive automotive telematics).

Mapping, Location, and Route Optimization: Understanding where a consumer is and providing recommendations based upon that. Examples include providing local maps, localized advertising, and directions.

Auto Clean Tech: Next-generation solutions seeking to increase fuel efficiency, lower emissions, and/or take advantage or renewable fuels.

Car Sharing: The collaborative consumption option for cars, enabling consumers to share the cost of auto ownership. Business models range from centrally administered micro-rentals through peer-to-peer shared ride arrangements.

Vehicle to Vehicle (V2V) Communications: Technologies which allow for direct vehicle-to-vehicle communication. These technologies can help with collision avoidance, route optimization, and maintaining the flow of traffic.

Intelligent Transit Systems: Intelligent Transit Systems (ITS) share information between cars and infrastructure, enabling collision avoidance, metering, and traffic management. Sometimes referred to Vehicle-to-Vehicle (V2V) or Vehicle-to-Infrastructure (V2I) systems.

Enhanced Auto Ownership: New methodologies to buy, rent, or insure cars. Also includes social networks dedicated to cars and car culture.

Auto Wireless Networking: These companies offer solutions that help cars communicate wirelessly with the cloud, so that interested users can monitor and/or analyze information coming from specific cars.

Automotive Infotainment: Communication and entertainment services that are integrated/streamlined into an automotive experience. Examples include music libraries, voice activation, telephony, and voice-to-text. Includes both integrated and after-market solutions.

Public Transit Enhancement: Public Transit Enhancements aim to encourage the use of public transit options. Examples include real-time tracking of buses, loyalty programs, and information.

Smart Parking Technology: Smart Parking solutions make it easier to manage parking space inventories, usually enabling consumers to find open space in-real-time or to pay for parking via mobile payment options.

Auto Heads Up Display (HUD): Technologies that bring “cockpit” style display technologies into the automotive realm.

Autonomous & Assisted Car Sensors: Companies that provide various solutions that assist a human in driving a car or work to eliminate the need for a human behind the wheel.

2. Number of Companies Per Category

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The bar graph above summarizes the number of companies in each Connected Transportation category to show which are dominating the current market. Currently, the “Automotive Telematics” category is leading the way with a total of 177 companies, followed by “Mapping and Locations” with 110 companies.

3. Median Funding By Category

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The bar graph above summarizes the median company funding per Connected Transportation category. Here, the “V2V Communications” category leads the way with a median of $20M. Top companies in V2V Communications today include Peloton Technology and Choda Wireless. Following the V2V Communications category is the “Auto Wireless Networking” category with a median funding of $16.9M.

4. Venture Investing in Connected Transportation

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The graph above compares total venture funding in Connected Transportation to the number of companies in each category. The data suggests that the “Ride Hailing and Scheduling” is the category with the most traction. However, the data in that category is impacted greatly by Uber’s $8.2B in funding.

5. Global Breakdown of Connected Transportation

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The following infographic is an updated heat map indicating where Connected Transportation innovations occur. We are tracking companies across 43 countries and 309 cities. The United States is leading the way with 283 companies, the United Kingdom is in second with 28 companies, and India is in third with 18.

6. Median Age of Connected Transportation Categories

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The bar graph above summarizes Connected Transportation by median age of category. The “V2V Communications,” category has the highest median age at 18 years. The youngest categories are “Ride Hailing” and “Enhanced Auto Ownership” with medians of 4 years and 3 years, respectively.

As Connected Transportation continues to develop, so too will its moving parts. We hope this post provides some big picture clarity on this booming industry.

Venture Scanner enables corporations to research, identify, and connect with the most innovative technologies and companies. We do this through a unique combination of our data, technology, and expert analysts. If you have any questions, reach out to info@venturescanner.com.