First Move Capital Closes $150M Fund Focusing on Automotive and Transportation
Introduction
First Move Capital, a Boulder-based venture firm with a proven track record of investing in innovative companies within the automotive and transportation sectors, has successfully closed a new fund totaling $150 million. This latest move signifies the company’s continued commitment to supporting emerging technologies that are transforming the way we travel.
Background on First Move Capital
First Move Capital was founded in 2012 with an initial fund of $40 million. The firm’s early investments focused on auto commerce and dealership technologies, as well as broader retail and enterprise software startups. As the automotive landscape continued to evolve, FM Capital shifted its focus with its second fund, which more than doubled to $90 million. This marked a significant turning point for the company, as it became an automotive-focused venture capital firm with a keen interest in auto commerce, autonomy, sensors, connectivity, electrification, and shared mobility.
Overview of New Fund
The new $150 million fund is supported by existing strategic investors, including OEMs (Original Equipment Manufacturers), dealers, distributors, fleet management companies, remarketers, insurance providers, software vendors, and family offices. The proceeds from this round will be exclusively allocated to new investments. FM Capital has already made seven investments from the oversubscribed fund, which includes notable startups such as Gatik, an autonomous vehicle company; Tekion, a cloud-based automotive retail platform; and Revolution Parts, an e-commerce startup.
Investment Strategy
FM Capital typically invests between $5 million to $10 million in companies with transformative solutions for transportation. The firm often engages at the Series A stage but also does later seed rounds where there’s commercial traction and revenue. In this new fund, FM Capital has already completed one seed deal among the seven investments made so far.
Expert Insights
In a recent interview, Managing Partner Mark Norman highlighted the significant transformation occurring in propulsion technology due to government mandates worldwide. This shift from internal combustion engines towards alternative fuels, such as electric vehicles (EVs), is also affecting downstream service infrastructure, marketplaces for residual values, and lifecycle vehicle estimation.
Norman pointed out FM Capital’s latest investment into Indigo Technologies, which has developed a vehicle platform with an in-wheel motor and suspension that frees up space. This innovation reflects the broader trend of software opportunities emerging as more vehicles hit the marketplace with embedded connectivity. Norman also noted additional opportunities in enterprise software, particularly as car rentals, dealerships, and fleet management continue to consolidate and demand centrally driven tools and data.
Expert Insights (Continued)
Looking ahead, Norman sees tremendous potential in EVs and other forms of propulsion besides internal combustion engines. He emphasized the government mandates driving this change worldwide: "There’s just a huge transformation going on with propulsion… Alternative fuels and distribution and related service infrastructure is going through a ton of flux right now."
Norman also highlighted opportunities stemming from increased embedded connectivity in vehicles, enabling a wide range of software solutions. He noted that FM Capital will continue to invest actively over the next couple of years.
FM Capital’s Impact
FM Capital has backed a total of 40 companies across North America, Europe, and Tel Aviv. Their investments demonstrate a keen understanding of the evolving automotive landscape, focusing on transformative technologies that improve transportation efficiency, sustainability, and convenience.
In conclusion, First Move Capital’s new $150 million fund signifies its continued commitment to supporting innovative startups within the automotive and transportation sectors. With a proven track record of investing in companies such as Gatik, Tekion, and Revolution Parts, FM Capital is well-positioned to navigate the evolving landscape of transportation technologies.
Key Takeaways
- First Move Capital has closed a new $150 million fund focusing on automotive and transportation.
- The firm’s investment strategy typically engages at the Series A stage but also does later seed rounds where there’s commercial traction and revenue.
- FM Capital sees tremendous potential in EVs and other forms of propulsion besides internal combustion engines, driven by government mandates worldwide.
- The firm is keen on software opportunities emerging as more vehicles hit the marketplace with embedded connectivity.
