Startups Spurring Innovation in Connected Car Technology

Startups are innovating with technology in more intriguing ways pushing ahead of large companies. VCs are also clearly taking a significant interest in this space as IOT connected vehicles industry is expected to boom by 2025. According to pitchbook, globally the funding environment in autonomous vehicles over the last decade has been very positive with about USD 30.4 billion being invested across 450 deals in autonomous vehicles and related technologies. In Q1 2020 alone venture capital investors poured a record $3.4 billion.

Past trends suggest that a significant portion of VC investment in the space has gone toward startups such as Zoox, Nuroa and Aurora – focused on developing full-stack autonomous solutions. However, according to Pitchbook, this is starting to change as investments are expanding into companies that focus on a single aspect of autonomy, such as perception or localization, or otherwise augment the autonomous vehicle space.