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Investors hit the brakes on mobility investment

Data: PitchBook; Chart: Axios Visuals
Data: PitchBook; Chart: Axios Visuals

Venture funding for electric vehicles, charging infrastructure, freight hauling, logistics software and other mobility sectors plummeted for a second straight year in 2023, per new PitchBook data.

Why it matters: Moving stuff from here to there has proved more expensive than funders and founders anticipated.

The big picture: It's harder than ever to raise money for a mobility startup.

  • Startups building transportation hardware and software saw venture investment plunge through 2022 and 2023, last year raising just 28% of the capital they'd amassed only two years earlier.
  • The number of deals also fell by half, further reflecting the investor chill.

State of play: The slowdown occurred across a range of sectors that PitchBook included in data published last week.

  • We've written already about the slowing pace of growth in EV sales, as battery-powered cars and trucks transition from enthusiastic early adopters to more skeptical mainstream buyers.
  • Cruise's struggles with its self-driving tech and Spin's series of "hot potato" M&A deals for its micromobility offerings illustrate just some of the additional challenges in the space.

👀 What we're watching: Last year brought a series of venture investments in EV charging software developers. We'll see how the competition between these rather similar companies shakes out.

  • We're keeping an eye, too, on eVTOL or electric air-taxi developers such as Joby, Wisk, Beta, and Archer Aviation as they move closer to certification.
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