Summary:
$6.7 billion invested in mobility tech in Q2 2024, a 13.9% increase.
Major funding rounds led by Nvidia in Wayve and Scale AI.
Deal count down 27.4% year-over-year, indicating a focus on larger startups.
Autonomous driving gaining traction with concerns over safety and regulations.
The underwater drone market projected to grow to $15 billion by 2032.
The Expanding World of Mobility Tech
Mobility tech encompasses a vast array, from electric vehicles (EVs) to scooters and even underwater drones. However, autonomous driving has emerged as a standout in Q2 2024, with significant investments from major players.
Major Investments in Autonomous Driving
In the last quarter, Venture Capitalists (VCs) poured $6.7 billion into mobility tech, reflecting a 13.9% quarter-over-quarter increase in deal value, as reported by PitchBook. Notably, big names like Nvidia have been heavily involved in high-profile deals. For instance:
- Wayve secured a $1.1 billion Series C round led by Nvidia, Eclipse Ventures, and SoftBank.
- Scale AI raised $1 billion in Series F funding, also led by Accel and Nvidia.
- Nvidia was part of the $200 million Series B funding for Waabi, co-led by Uber and Khosla Ventures.
Growth Amidst Decline
Despite the increase in investment, the deal count in Q2 fell by 27.4% year-over-year and about 30% year-to-date. This trend suggests that while large, well-known firms attract substantial funding, smaller startups may struggle to secure investments.
Real-World Applications and Scrutiny
The summer has seen significant advancements in autonomous driving. Waymo, owned by Alphabet, has lifted its waiting list in San Francisco, making its services available to the public. Similarly, Amazon's Zoox is gearing up for a customer rollout. However, as these technologies gain traction, concerns about robotaxi safety have intensified, particularly with incidents involving GM's Cruise.
Future Markets in Underwater Drones
While the spotlight is on autonomous vehicles, the market for underwater drones is projected to grow dramatically, expected to reach $15 billion by 2032 from $4.4 billion last year. This includes military applications, with the marine data sector alone already valued at around $1.3 billion.
Additional Insights
In other news, Hack VC has launched a new $77 million fund focused on crypto, further expanding the landscape of venture capital funding.
For more updates and insights, follow Allie Garfinkle on Twitter or reach out via email at alexandra.garfinkle@fortune.com.
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