Illustration: Sarah Grillo/Axios
Stellantis Ventures, the auto giant's venture arm, has unveiled the first round of recipients of its investment fund, deploying a huge chunk of cash into companies ranging from a battery maker to an AI startup.
Why it matters: Automakers are looking to tech innovation as a way to make the difficult transition to electric vehicles and beat out competitors in the process.
Details: Stellantis, the world's fourth largest automaker, created the $326 million (~€300 million) fund last year to invest in early and later stage startups across mobility.
- On Thursday, the company unveiled its initial investments. They did not disclose how much money was spent per investment, though Stellantis Ventures head Adam Bazih said the allocation totaled "a third of the capital."
How it works: Stellantis Ventures invested in 10 startups, some directly related to its automaker brands (like Chrysler, Jeep and Maserati) and some not. The companies include:
- Lyten: An 8-year-old startup that makes a lithium-sulfur battery.
- 6K: A materials-science startup that creates the feedstock for 3D printing and new batteries.
- Trails Offroad: A website for offroad trails guides that already has a partnership with Stellantis' Jeep.
- Nauto: A startup using AI to help commercial vehicle fleets reduce accidents and fuel use.
- NetZero: A French startup developing biochar, which can capture carbon.
- Stellantis also invested in a mobility VC fund, but would not name the fund because it's still in the process of closing, said Bazih.
Zoom in: Stellantis Ventures joins the ranks of automaker venture arms like GM Ventures, BMW iVentures, Volvo Cars Tech Fund, and Toyota Ventures — all of which are relying on tech to help navigate the challenges of electrification and autonomous vehicles.
Be smart: Some automakers have struggled with their corporate VC arms. Auto venture funds can be more successful for research and development than for generating a return for the auto firm.
- Years ago Honda launched a venture arm called Honda Strategic Venturing, which took equity investments in startups. But in recent years Honda has replaced the VC arm with an accelerator that mostly doesn't do dilutive equity startup investing.
The bottom line: Auto venture investing can be tricky, and we're watching to see if Stellantis will be able to invest in any breakout startups.
