Ga igan, James P.; Fákó, Pe e ; Compañó, Ramón
Wo king Pape
Co po a e en u e capi al in he au omo i e sec o
JRC Wo king Pape s on Co po a e R&D and Inno a ion (CoRDI), No. 02/2024
P o ided in Coope a ion wi h:
Join Resea ch Cen e (JRC), Eu opean Commission
Sugges ed Ci a ion: Ga igan, James P.; Fákó, Pe e ; Compañó, Ramón (2024) : Co po a e en u e
capi al in he au omo i e sec o , JRC Wo king Pape s on Co po a e R&D and Inno a ion (CoRDI), No.
02/2024, Eu opean Commission, Join Resea ch Cen e (JRC), Se ille
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/306598
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
Co po a e Ven u e Capi al in he Au omo i e
Sec o
JRC Wo king Pape s on Co po a e R&D and Inno a ion (CoRDI) No 02/2024
Ga igan, J, Fákó, P and Compañó, R
2024
EUR XXXXX XX
This publica ion is a wo king pape by he Join Resea ch Cen e (JRC), he Eu opean Commission’s science and knowledge
se ice. I aims o p o ide e idence-based scien i ic suppo o he Eu opean policymaking p ocess.
The con en s o his publica ion do no necessa ily e lec he posi ion o opinion o he Eu opean Commission. Nei he he
Eu opean Commission no any pe son ac ing on behal o he Commission is esponsible o he use ha migh be made
o his publica ion. Fo in o ma ion on he me hodology and quali y unde lying he da a used in his publica ion o which
he sou ce is nei he Eu os a no o he Commission se ices, use s should con ac he e e enced sou ce. The
designa ions employed and he p esen a ion o ma e ial on he maps do no imply he exp ession o any opinion
wha soe e on he pa o he Eu opean Union conce ning he legal s a us o any coun y, e i o y, ci y o a ea o o i s
au ho i ies, o conce ning he delimi a ion o i s on ie s o bounda ies.
The JRC Wo king Pape s on Co po a e R&D and Inno a ion (CoRDI) add ess economic and policy ques ions ela ed o
indus ial esea ch and inno a ion and hei con ibu ion o he Eu opean ai and sus ainable compe i i eness and g ow h.
They a e p oduced unde edi o ial supe ision by he Indus ial Inno a ion & Dynamics (IID) eam o Uni B6 Indus ial
S a egy, Skills and Technology T ans e in he JRC Di ec o a e B Fai and Sus ainable Economy o he Eu opean
Commission.
The CoRDI Wo king Pape s a e accessible elec onically om he ollowing eposi o ies: JRC’s Indus ial Resea ch and
Inno a ion webpage (h p://i i.j c.ec.eu opa.eu/home), JRC Publica ion Reposi o y
(h ps://publica ions.j c.ec.eu opa.eu/ eposi o y/) and RePec (h p:// epec.o g/).
Edi o ial Boa d: The JRC Wo king Pape s on Co po a e R&D and Inno a ion a e published unde he edi o ial supe ision o
Alexande Tübke in collabo a ion wi h Fe nando He ás, Koen Jonke s, F ancesco Ren occhini a he Eu opean Commission
– Join Resea ch Cen e, and in coope a ion wi h Sa a Amo oso (Ge man Ins i u e o Economic Resea ch, DEU), Michele
Cince a (Sol ay B ussels School o Economics and Managemen , Uni e si é Lib e de B uxelles, BEL), Alex Coad (Waseda
Uni e si y, Tokyo, JAP), En ico San a elli (Uni e si y o Bologna, ITA), Daniel Ve esy (In e na ional Telecommunica ion
Union, CHE – and UNU-MERIT, NLD), An onio Vezzani (Roma T e Uni e si y, ITA); Ma co Vi a elli (Uni e si à Ca olica del
Sac o Cuo e, Milan, ITA) and Zol an Cse al ay (Ma hias Co inus Collegium, HUN). Any commen s and submissions can be
sen by email o: [email p o ec ed]u.
Con ac in o ma ion:
Alexande Tübke
Add ess: Eu opean Commission – Join Resea ch Cen e. Edi icio Expo. c/ Inca Ga cilaso, 3. E-41092 Se ille (Spain)
E-mail: Alexan[email p o ec ed]a.eu
Mo e in o ma ion, including JRC.B6 ac i i ies and publica ions, is a ailable a : h ps://i i.j c.ec.eu opa.eu/home/.
EU Science Hub
h ps://join - esea ch-cen e.ec.eu opa.eu
JRC139326
Se ille: Eu opean Commission, 2024
© Eu opean Union, 2024
The euse policy o he Eu opean Commission documen s is implemen ed by he Commission Decision 2011/833/EU o 12
Decembe 2011 on he euse o Commission documen s (OJ L 330, 14.12.2011, p. 39). Unless o he wise no ed, he euse
o his documen is au ho ised unde he C ea i e Commons A ibu ion 4.0 In e na ional (CC BY 4.0) licence
(h ps://c ea i ecommons.o g/licenses/by/4.0/). This means ha euse is allowed p o ided app op ia e c edi is gi en and
any changes a e indica ed.
Fo any use o ep oduc ion o pho os o o he ma e ial ha is no owned by he Eu opean Union, pe mission mus be
sough di ec ly om he copy igh holde s.
How o ci e his epo : Eu opean Commission, Join Resea ch Cen e, Ga igan, J., Fákó, P. and Compañó, R., Co po a e Ven u e Capi al in he
Au omo i e Sec o , Eu opean Commission, Se ille, 2024, JRC139326.
1
Con en s
Abs ac ....................................................................................................................................................................................................................................................................... 2
Acknowledgemen s .......................................................................................................................................................................................................................................... 3
Execu i e summa y .......................................................................................................................................................................................................................................... 4
In oduc ion .............................................................................................................................................................................................................................................................. 5
Open Inno a ion ools and Co po a e Ven u e Capi al .................................................................................................................................................. 6
2.1 Au omo i e CVC – a ising end? .................................................................................................................................................................................... 6
2.2 Au omo i e CVC is implemen ed in a di e si y o ways ............................................................................................................................ 7
2.3 Au omo i e CVC in es men s a e globally sp ead, bu he e is a clea concen a ion o in es men s in
he US – no ably in Cali o nia ....................................................................................................................................................................................................... 7
2.5 The as majo i y o CVC in es men s in s a ups a e made in conjunc ion wi h o he co-in es o s .......... 8
2.6 Do newcome s o he au omo i e indus y ha e CVC ac i i ies? ..................................................................................................... 8
Da a on CVC ac i i y o a selec ion o la ge au omo i e companies ............................................................................................................ 9
3.1 The Au o25 CVC da a se ........................................................................................................................................................................................................ 9
3.2 Time e olu ion and analysis by VC s age (seed, ea ly, la e) o Au o25 CVC ac i i y ................................................. 11
3.3 Analysis by numbe o in es o s pe deal ............................................................................................................................................................ 12
3.4 B eakdown o Au o25 CVC in es men by sec o / hema ic a ea ................................................................................................. 13
3.5 Loca ion o he s a up in es ees ................................................................................................................................................................................ 19
Main messages ................................................................................................................................................................................................................................................. 22
Final wo ds ............................................................................................................................................................................................................................................................ 23
Re e ences ............................................................................................................................................................................................................................................................. 24
Annex .......................................................................................................................................................................................................................................................................... 25
2
Abs ac
The ongoing ans o ma ion o he au omo i e sec o is in pa d i en by ac o s such as he un elen ing
onslaugh o elec ic/hyb id powe ain echnologies, in- ehicle and ne wo ked so wa e applica ions, ising
demand o elec ic ehicles, and he eme gence o new en an s like Tesla and o he s no ably in China. The
esponse o au omo i e i ms o hese challenges includes, in e alia, Open Inno a ion (OI) ools and
s a egies o which Co po a e Ven u e Capi al (CVC) is one elemen . CVC in es men s by la ge au omo i e
companies a e globally sp ead, bu he e is a clea concen a ion o hese in es men s in he US, pa icula ly
in Cali o nia. The as majo i y o CVC in es men s in s a ups a e made in conjunc ion wi h o he co-
in es o s, e lec ing he high- isk na u e o he inno a i e echnologies being de eloped. Newcome s o he
au omo i e indus y, such as Tesla and BYD, a e p ima ily bene icia ies o en u e capi al inancing, including
co po a e VC, a he han hemsel es engaging in en u e inancing. Despi e a d op in CVC in 2023, he ising
end in au omo i e CVC may e u n o e he medium o long e m, d i en by inc easing s a up ac i i y in
au omo i e- ele an a eas.
3
Acknowledgemen s
The au ho s a e g a e ul o de ailed commen s and sugges ions ecei ed on a p e ious d a o his pape
om Elisabe h Nindl (in he same JRC uni as he au ho s) and om wo in e nal e iewe s - Panayo is
Ch is idis (JRC.C6) and Diego D’Adda (JRC.T1) – wo king in o he Uni s o he JRC in Se ille.
4
Execu i e summa y
The au omo i e sec o is unde going a signi ican ans o ma ion d i en by a a ie y o ac o s. These include
he compe i ion o di e en elec ic/hyb id powe ain echnologies o displace he in e nal combus ion
engine, new so wa e applica ions, public-policy d i en demand o elec ic ehicles, and he eme gence o
new en an s such as Tesla. This ans o ma ion poses a h ea o incumben i ms domina ed by in e nal
combus ion engines, and has high socio-economic and poli ical signi icance, pa icula ly in he EU.
In esponse o hese challenges, au omo i e i ms a e u ning o Open Inno a ion (OI) ools and s a egies. OI
e e s o a s uc u ed app oach o i m collabo a ion wi h ex e nal pa ne s – s a ups, clien s, supplie s,
academic and public esea ch o ganisa ions – aimed a accele a ing he disco e y, de elopmen and
deploymen o inno a ion. Co po a e Ven u e Capi al (CVC) is one such ool, and in ol es in es ing in s a ups
o access hei inno a i e echnologies and solu ions. This pape combines a quali a i e discussion wi h
quali a i e analysis o au omo i e CVC, he la e based on da a o 1173 inancing deals o 827 s a ups in
which one o mo e o he op 25 au omo i e co po a es [by wo ldwide R&D spend] pa icipa ed.
CVC in es men s by la ge au omo i e companies a e globally sp ead, bu he e is a clea concen a ion in he
US, pa icula ly in Cali o nia. This is likely due o he p esence o a la ge pool o inno a i e s a ups and alen
in he egion. Fo example, 49 ou o 66 s a ups in he po olio o BMW i Ven u es a e based in No h
Ame ica.
The as majo i y o CVC in es men s in s a ups a e made in conjunc ion wi h o he co-in es o s. This is
unde s andable gi en he high- isk and explo a o y na u e o he inno a i e echnologies and solu ions ha
he s a ups a e de eloping. Co-in es men also allows o isk sha ing and he pooling o esou ces and
expe ise.
Newcome s o he au omo i e indus y, such as Tesla and BYD, a e p ima ily bene icia ies o en u e capi al
inancing, including co po a e VC. These companies, which a e mainly in he elec ic ehicle business, ha e
ecei ed signi ican inancial suppo om a ious sou ces. Some o hese newcome s ha e also begun o
in es in o he s a ups, p ima ily h ough acquisi ions.
Despi e a d op in CVC in 2023, he ising end in au omo i e CVC may e u n o e he medium o long e m.
This is likely o be d i en by inc easing s a up ac i i y in a eas ele an o he au omo i e indus y, such as
elec ic ehicles, au onomous d i ing echnology, mobili y se ices, digi alisa ion, g een echnologies, and
supply chain op imisa ion.
5
In oduc ion
The on-going ans o ma ion o he au omo i e sec o is d i en by many ac o s such as: di e en
elec ic/hyb id powe ain echnologies compe ing o displace he in e nal combus ion engine (ICE); new
so wa e applica ions (Teece, 2018; The Economis , 2022); public-policy d i en demand o elec ical ehicles
(IEA, 2023); eme gence o new en an s such as Tesla and o he ca manu ac u e s pa icula ly om China;
and pa adigm shi s such as sma ac o ies, connec ed, au onomous and sha ed d i ing (Pauno & Planes-
Sa o a, 2019). The esul ing h ea o ICE-domina ed incumben i ms (Al enbu g e al., 2022, Thun, 2018,
has high socio-economic and he e o e poli ical signi icance in he EU whe e, in 2022, he sec o accoun ed
o 7% o employmen 1, 10% o expo s2, and 32% o i s p i a e R&D in es men s3.
One way in which au omo i e i ms a e esponding o he echnological dimensions o hese challenges is
h ough he use o Open Inno a ion (OI) ools and s a egies. OI e e s o a s uc u ed app oach o i m
collabo a ion wi h ex e nal pa ne s – s a ups, clien s, supplie s, academic and public esea ch o ganisa ions
– aimed a accele a ing he disco e y, de elopmen and deploymen o inno a ion (see o example he
desc ip ion o Volkswagen G oup’s app oach o OI a h ps://www.openinno a ion- olkswageng oup.com/#). OI
complemen s adi ional app oaches o inno a ion in ol ing in-house R&D, pa en ing and IP managemen
ac i i y, inno a ion p ocu emen , esea ch collabo a ions and join en u es.
Sec ion 2 o his Wo king Pape gi es a snapsho 4 o s a up o ien a ed OI ools used by au omo i e i ms
ocusing pa icula ly on Co po a e Ven u e Capi al (CVC)5. I desc ibes o e all endencies, ci ing examples o
CVC in es men s by la ge au omo i e companies in he EU, US, China, Japan and he es o he wo ld (ROW).
This mos ly quali a i e o e iew sec ion is ollowed in Sec ion 3 by a quan i a i e analysis o CVC inancing o
inno a i e s a ups om 2010 o 2023 by 25 au omo i e companies consis ing o he op i e R&D in es o s
headqua e ed in, espec i ely, he EU, US, China, Japan and ROW.6 The quan i a i e analysis is based on da a
on VC deals ex ac ed om Deal oom in which a leas one o hese 25 companies o a subsidia y he eo is
among he named in es o s. The da a sample con ains in o ma ion on 1173 inancing deals o 827 s a ups
in which one o mo e o he 25 au omo i e co po a es pa icipa ed.
1 13 million jobs (h ps://www.acea.au o/ igu e/employmen -in-eu-au omo i e-sec o /)
2 h ps://www.wo lds opexpo s.com/eu opean-unions- op-10-expo s/
3 Own calcula ion based on Sco eboa d Panel o 2021.
4 A comp ehensi e o e iew is no possible as co po a es equen ly adjus , e mina e o s a new ac i i ies aimed a such s a ups and
much CVC ac i i y is no publicly disclosed.
5 i.e. equi y inancing and nu u ing o s a ups by au omo i e OEMs o supplie s ei he by dedica ed co po a e VC b anches o by ully o
pa ly owned subsidia ies se up o manage such unds. N.B. included in his is CVC suppo o au omo i e s a ups by newcome s such as
Tesla, Ri ian o Lucid Mo o s in he US, Byd, Nio o Xpeng in China; howe e , no co e ed is CVC by co po a es which a e no p ima ily
au omo i e i ms – Deal oom da a shows ha he e is a lo o such CVC coming om ou side he indus y - his is in keeping wi h he big
ans o ma ions he indus y is unde going and he blu ing o i s bounda ies.
6 acco ding o he 2023 edi ion o he indus ial R&D Sco eboa d h ps://i i.j c.ec.eu opa.eu/
6
Open Inno a ion ools and Co po a e Ven u e Capi al
A se ies o epo s on Open Inno a ion (OI) in 100 global inno a ion leade s by ‘Mind he B idge’7, lis s six
ypes o s a up-o ien a ed OI app oaches. Two app oaches in ol e acqui ing equi y in he s a up (CVC, M&A),
while he o he ou do no necessa ily (Ven u e Clien , Inno a ion Labs [including accele a o s and
incuba o s], In ap eneu ship, Ou pos s). CVC and Ven u e Clien we e epo ed in Mind he B idge’s Open
Inno a ion Ou look 2023 epo o be he dominan o ms8 o OI, hough in i s Ou look 2024, CVC is lis ed in
ou h place behind Ven u e Clien , In ap eneu ship and Ou pos , possibly e lec ing he o e all sh inkage o
VC in 2023.
Au omo i e- ele an obse a ions in Mind he B idge’s Dec 2022 “E ol e o be Ex inc ” epo 9 include:
1. Ou pos s: Mos inno a ion leade s ha e a s uc u ed p esence in Silicon Valley and Is ael (e.g. a
CVC o ice, inno a ion lab, …) some imes coupled wi h o he ac i i ies – Bosch has bo h a CVC
o ice and an R&D cen e in Silicon Valley;
2. Inno a ion Lab examples: 1) Honda Xcele a o wi h p esences in No h Ame ica, Eu ope, Is ael,
Japan & sou heas Asia, ocuses on in es men and s a egic pa ne ships; 2) 1886Ven u es, a
so-called ‘ en u e builde ’ o ‘s a up s udio’ is a now non-dependan spin-ou o Me cedes-Benz.
3. Ven u e Clien : In his app oach, pionee ed by BMW S a up Ga age, no equi y is aken bu he
company posi ions i sel as lead clien o he s a ups. Indeed, many i no all inno a ion leade s
ha e Ven u e Clien uni s: Fo example, Open Bosch was launched in 2018 o enhance Bosch’s
CVC ac i i y. Vol o G oup’s10 CampX incuba o p og amme wo ks wi h abou 30 ea ly s age
deep ech s a ups no ye ipe o in es men . Simila o Jagua Land Ro e ’s collabo a ion wi h
Plug and Play ( he wo ld’s la ges s a up accele a o ), CampX pe mi s Vol o o wo k wi h many
mo e ea ly s age deep ech s a ups han i s CVC a m – Vol o G oup Ven u e Capi al which
makes 3 o 5 VC deals pe yea o be ween $1-10 million.
2.1 Au omo i e CVC – a ising end?
A 2017 pape en i led “The limi ed in e es o ca make s in co po a e en u e capi al: insigh s om a ma u e
indus y” (Flamand & F igan , 2017)11 ound a ela i ely low le el o CVC in he au omo i e sec o . In he
mean ime, his has changed. Co po a e en u ing is commonly used by adi ional au omake s and la ge ie -
1 au omo i e supplie s o s ay ab eas o apid dis up ion by accessing ex e nal cu ing-edge inno a ion and
o ging pa ne ships wi h s a ups. E en hough CVC has seen a d op in 2023 ( ollowing an o e all d op in VC
in es men s o e he pas wo yea s), he ising end may well e u n o e he medium o long e m, d i en
by apidly inc easing s a up ac i i y in au omo i e- ele an a eas:
Elec ic ehicles, ba e y echnology, cha ging in as uc u e and all ypes o on-boa d so wa e;
Au onomous ehicles and sel -d i ing echnology;
Mobili y se ices, including ide-sha ing, ca -sha ing, and on-demand anspo a ion;
Digi aliza ion including in-ca connec i i y and o he so wa e-d i en ea u es;
G een echnologies and p ocesses o educe he au omo i e en i onmen al oo p in ; and
Technologies o op imize supply chains, manu ac u ing and logis ics, and educe p oduc ion cos s.
CVC ac i i y also acili a es collabo a ion wi h s a ups o s a egic po en ial o la ge au omo i e i ms gi ing
hem access o non-co e echnologies and oppo uni ies such as: expe ise on u baniza ion and sma ci ies;
global expansion ia in e na ional pa ne ships; collabo a ion wi h ech gian s like Amazon, Apple, and Google
(le e aging hei so wa e and AI expe ise); di e si ica ion in o AI, cybe secu i y; e c.
7 see h ps:// esea ch.mind heb idge.com/ epo s
8 ‘Ven u e Clien ’ is whe e he company akes no equi y bu becomes he i s clien o he s a up
9 h ps://mind heb idge.com/e ol e-o -be-ex inc - epo -2022/
10 Vol o G oup p oduces ucks, buses, cons uc ion equipmen & engines bu does no include Vol o Ca s (which has been pa o Geely
(China) since 2010 and uns i s own CVC Vol o Ca s Tech Fund since 2018)
11 h ps://www. and online.com/doi/ ull/10.1080/13691066.2017.1335959
13
Table 3 Dis ibu ion by numbe o in es o s pe deal o he o al numbe o Au o25 deal
pa icipa ions & he associa ed numbe o s a ups; he numbe o disclosed deal pa icipa ions,
s a ups, Au o25 in es men and o al in es men . Sou ce: JRC elabo a ion based on Deal oom
da a (las accessed 02.02.2024).
#in es-
o s
#
deals
#disclosed
deals
#
comps
#comps in
disclosed deals
Au o25 CVC
in es men s*
To al
in es men s
1 254 138 228 125 9,110 9,110
2 178 125 150 108 2,872 5,744
3 153 127 127 104 4,056 12,169
4 160 145 134 125 2,403 9,612
5 136 121 110 98 1,088 5,441
6 113 108 97 92 852 5,113
7 107 103 74 70 1,707 11,949
8 85 81 62 58 1,417 11,334
9 44 43 35 34 290 2,606
10 33 32 30 29 148 1,481
11 24 23 19 18 239 2,624
12 24 23 11 10 282 3,112
>12 33 32 23 22 407 7,711
To al 1,344 1,101 n.a. n.a. 24,870
88,006
*: sum o he pa s o he Au o25 in es o s om a ce ain deal, ac ioning uni o mly ac oss he o al numbe o in es o s
pa icipa ing in a deal (e.g. o al numbe o in es o s = n, numbe o Au o25 in es o s 2. The column will show he 2/n h pa
o he o al amoun ).
3.4 B eakdown o Au o25 CVC in es men by sec o / hema ic a ea
The da a sample o CVC in es men deals pa icipa ions eco ds he a ea o sec o o ac i i y o he s a up
in es ees. As expec ed, mos o he s a ups o in e es o au omo i e i ms a e ac i e in a eas di ec ly o
indi ec ly ele an o au omobiles. Howe e , as is he case o co po a es ac oss all indus ial sec o s, many
CVC in es men s a ge echnological a eas, which a bes ha e a en a i e link o co e business o indeed no
link a all and as such no di e en om mains eam VC und in es men s.
In o de o de ine he sec o s o ac i i y we used Deal oom indus y ca ego ies and subca ego ies and
g ouped hem u he in o de o ensu e pa simony and ele ance. The au omo i e sub-indus ies ep esen
he backbone o he p esen analysis, he e o e we p o ide hei de ini ion he eunde 24. While o se en ou o
he eigh au omo i e sub-indus ies we use he Deal oom de ini ion, o he las sub-indus y om he lis
below (e ie) we p o ide ou own (Table 4). We also de ined sec o s o ac i i y by g ouping he Deal oom
indus y ca ego ies (Table 5).
24 The de ini ions o he emaining indus y ca ego ies can be ound on Deal oom’s websi e a h ps://in e com-
help.eu/deal oom/en/collec ions/4768-de ini ions-dic iona y- axonomy.
14
Table 4 Au omo i e and o he anspo a ion sub-indus ies de ini ions and abb e ia ion used.
Sou ce: Deal oom and JRC elabo a ion
Au omo i e
sub-indus y Desc ip ion
Sea ch, Buy & Ren
(sb )
Ma ke places and o he solu ions o enable and acili a e new and used
ehicle pu chasing, ehicle en al and leasing, as well inancing
Main enance
(m )
Solu ions o imp o e main enance and a e ma ke o ehicles including
pla o ms o connec use s o ne wo ks o epai deale s, claim
es ima ion o insu ance, B2B solu ions and ma ke places o pa s
Na iga ion & Mapping
(nm)
S a ups de eloping solu ions o ack ehicles, p o ide na iga ion and
mapping. This includes na iga ion apps, elema ics p o ide s, pla o ms
o mobili y da a sha ing, logis ics acking
Au onomous & Senso Tech (as )
S a ups de eloping solu ions o au onomous d i ing o o enhance
o he ehicle sensing capabili ies. This included au onomous d i ing
ehicles, so wa e and senso s and V2X
Vehicle P oduc ion
( p)
S a ups p oducing o de eloping solu ions o ehicle p oduc ion, as well
as ehicle pa s such as mo o s, chassis
Mobili y
(mb)
S a ups de eloping anspo a ion solu ions ge ing people om poin A
o poin B. This includes ide hailing, ide sha ing, public anspo and
mic omobili y
Logis ics & Deli e y
(ld)
S a ups de eloping solu ions o he anspo a ion o goods, he
packaging o p oduc s o s o age and shipmen in ol ing bo h in e nal
and ex e nal dis ibu ion ne wo ks
EV cha ging
(e ie)
S a ups explici ly de eloping deploying e- cha ging and o he ene gy
in as uc u es
Table 5 Clus e ing o Deal oom indus y de ini ions in o la ge Sec o g oups. Sou ce: JRC
elabo a ion, Deal oom
Sec o (JRC) Deal oom indus y
Ad anced manu ac u ing,
indus ials
obo ics, enginee ing and manu ac u ing equipmen , 3D p in ing,
chemicals, mining, eal es a e cons uc ion
Au omo i e Au onomous & senso ech, ehicle p oduc ion, sea ch & buy & en ,
na iga ion& mapping, EV cha ging, main enance
T anspo a ion - o he mobili y, logis ics & deli e y
Ene gy ene gy
Fin ech Fin ech
ICT ha dwa e semiconduc o s
ICT so wa e en e p ise so wa e, secu i y, elecom, hos ing
Leisu e, ashion,
en e ainmen
consume elec onics, spo s, a el, music, gaming, wellness beau y,
ashion, home li ing
Li e sciences ech heal h, ood, ag i ech
Ma ine, ae onau ics,
space ma ine & ai anspo , space
O he eal es a e (o he han cons uc ion), media, ma ke ing, educa ion, jobs
ec ui men , e en ech
In es men s o Au o25 in es o s in 2010-2023 we e concen a ed in ela i ely ew sec o s ha a e s ongly
ela ed in hei na u e o hei mo he company’s main ac i i y (Figu e 3). Thus, 77% o all in es men s wen
o he anspo a ion sec o , mainly o au omo i e sub-sec o (54%), bu he mobili y and logis ics & deli e y
indus ies also go signi ican capi al injec ions (23%). Rela i ely lowe sha es we e spen in he ene gy sec o
(9%), and in ICT so wa e and ha dwa e (7%). The emaining six sec o s, encompassing 26 Deal oom-de ined
indus ies go ma ginal amoun s eaching al oge he 7% o o al in es men s. Wi hin he au omo i e sec o ,
he au onomous and senso ech (as ) indus y domina es he landscape o in es men s wi h i s 64% sha e o
o al au omo i e in es men s. I is ollowed by he mo e gene al ehicle p oduc ion ( p) indus y (23%). The
lowe impo ance o EV cha ging (e ie) in es men s (5%) may be due o he s ill ela i ely smalle sha e o
he EV segmen o he au omo i e ma ke . Howe e , he segmen is expec ed o ace signi ican g ow h in he
15
nea u u e suppo ed by a p edic ed six- old inc ease o public cha ging, e en hough p i a e cha ging would
s ill domina e (IEA, 2024). I is somewha puzzling he low sha e o he na iga ion & mapping sub-sec o , and
i may be ela ed o he ela i ely smalle needs o physical capi al. In es men s in less capi al in ensi e
segmen s such as au omo i e e ail cap u ed by sea ch & buy & en (sb ) indus y o ehicle main enance
(m ) a e o lowe impo ance (3% al oge he ).
Figu e 3 Dis ibu ion o he agg ega e amoun o Au o25 CVC in es men s and Au o25 CVC
in es men s in au omo i e sub-indus ies in 2010-23, b oken down by he sec o o ac i i y o he
in es ee s a ups. (as : au onomous & senso ech, p: ehicle p oduc ion, nm: na iga ion &
mapping, m : main enance, sb : sea ch & buy & en , e ie: EV cha ging). Sou ce: JRC elabo a ion,
da a sou ce: Deal oom
The e a e al oge he 411 deal pa icipa ions in he au omo i e sec o , 339 (83%) o hem he amoun
in es ed is disclosed, o he o he 52 he deal amoun is no disclosed. These pa icipa ions ep esen 328
sepa a e deals, 261 o hem disclosed and 67 nondisclosed. Based on he pe cen ile dis ibu ion o he
cumula ed amoun s o in es men by Au o25, he e is a signi ican concen a ion o he in es ed amoun s in
a ai ly low numbe o deals: while he 3 la ges deals accoun o one hi d o he o al globally in es ed CVC
amoun by Au o25 du ing 2010-23, he op 8 deals accoun o hal o he o al, and only 32 deals o 80%
o he ull amoun going o he au omo i e indus y25. The lowes 10% in e ms o amoun s in es ed comp ise
a o al o 200 deals. The amoun s o hese deals a e indi idually less han EUR27 million. Fu he o his, da a
shows ha 157 deals, i.e. 60% o he sample a e less han EUR10mn26. This means ha he o he 40% o he
sample is cha ac e ized by ela i ely la ge in es men s (Table 6).
Sec o -wise, he au onomous &senso ech and ehicle p oduc ion a e he wo sec o s whe e he la ges deals
we e made, he o me being in he lead. Likewise, he US is he egion whe e he mos signi ican
in es men s ook place, e.g. he la ges h ee deals, accoun ing o one hi d o he o al Au o25 in es ed
amoun s we e all done in he US. Howe e , in he lowe qua ile wi h amoun s be ween EUR27mn and
EUR125mn pe deal, Chinese s a ups seem o become mo e in e es ing o he Au o25 in es o s: in his
alue ange one hi d o he deals conce n in es ees headqua e ed in China (Table 6).
25 No o con use he amoun s wi h he ull amoun s o he deals. The dis ibu ion o he la e shows simila ends, he able depic ing
hese amoun s is in he annex.
26 A ailable upon eques
16
Table 6 Numbe o disclosed deals by pe cen iles o he cumula ed amoun o in es men s made
by Au o25 CVC in es o s in he six sub-sec o s o he au omo i e indus y by sub-sec o al and
geog aphical b eakdown (as : au onomous & senso ech, p: ehicle p oduc ion, nm: na iga ion &
mapping, m : main enance, sb : sea ch & buy & en , e ie: EV cha ging). Sou ce: JRC elabo a ion,
da a sou ce: Deal oom
Pe c. amoun s,
EUR
# o D
deals as p nm m sb e ie EU US CN JP ROW
25 1.1-2.3billion 2 2 2
32 > 939 million 3 3 3
50 > 346 million 8 7 1 7 1
66 > 197 million 17 9 6 2 1 13 3
75 > 125 million 24 12 10 2 3 14 7
80 > 80 million 32 14 12 3 3 4 16 10 2
90 > 27 million 61 26 17 9 4 5 5 29 20 0 7
100 261 102 58 30 14 36 21
31 122 48 2 58
Key playe s in he op deals a e CVC in es o s ela ed o Volkswagen A.G. (accoun ing o he la ges deal,
EUR2.3 billion, ac ing also as single in es o ), Fo d Mo o s, Toyo a Mo o s, and Honda. They pa icipa ed in he
op 4-6 deals o ou sample27, in es ing al oge he EUR5 billion in only wo, US headqua e ed sel -d i ing
echnology companies, A go AI (EUR3.25 billion) and C uise (EUR1.75 billion). Volkswagen’s in es men in A go
AI is he la ges in es men o he sample in e ms o o al amoun in es ed. This is ollowed by a simila ly
la ge (EUR2.28 billion) in es men in No h ol (SE, ene gy) whe e Scania and Volkswagen G oup pa icipa ed
along 20 o he in es o s, and he EUR2.1 billion in es men in Ri ian Au omobiles, whe e Fo d Mo o s
pa icipa ed along se en o he in es o s (Table 7).
Table 7. Top en deals – o al amoun s (le ) and Au o25 CVC in es o amoun s ( igh ). (as :
au onomous & senso ech, p: ehicle p oduc ion, nm: na iga ion & mapping, m : main enance,
sb : sea ch & buy & en , e ie: EV cha ging). Sou ce: JRC elabo a ion, da a sou ce: Deal oom
Au omo i e and ‘o he anspo ’ ele an s a ups by a accoun o mos Au o25 CVC in es men (Figu e 3).
Howe e , while he numbe o au omo i e deal pa icipa ions is almos he same as o he ‘o he ’ sec o , he
amoun o in es men pe deal pa icipa ion in au omo i e s a ups is signi ican ly highe (Figu e 4). The EU,
US, CN and ROW headqua e ed Au o25 companies in es mo e in au omo i e s a ups han in any o he
a eas. JP headqua e ed Au o25 companies in es ed mo e in logis ics and deli e y and mobili y- ela ed a eas.
They ha e done so h ough a ela i ely limi ed numbe o la ge deals (EUR3.3bn ia 9 deals). The EU
headqua e ed Au o25 companies in es disp opo iona ely highe in ene gy- ela ed s a ups, albei o a o al
ha is a small ac ion o he amoun o all anspo - ela ed s a ups. (Figu e 4, le ). The ac ha hese
p opo ions a e no a all appa en o he numbe s o deals (Figu e 4, igh ) indica es ha a numbe o
ino dina ely high deal alues may be behind he amoun s in es ed.
27 A go AI, C uise, and G ab we e he a ge s o he op ou deals amoun ing o a o al Au o25 pa icipa ion o EUR4.8bn. C uise’s
u he capi al injec ion o EUR1.1bn o which Gene al Mo o s and Honda ela ed CVC in es o s accoun o EUR500mn is he i h la ges
deal in he sample. I is p eceded by an in es men sha e o EUR653mn made by Honda also in C uise (US, as )
deal
ank au o25
# o
in . yea
To al,
EURmn in es ee
indus y
code
1 VOLKSWAGEN (EU) 1 2020 2,310 A go AI (US) as
2 VOLKSWAGEN (EU) 22 2021 2,283 No h ol (EU) ene gy
3 FORD MOTOR (US) 8 2021 2,115 Ri ian Au omo i e (US) p
4 MAGNA (ROW) 6 2021 2,075 Waymo (US) as
5 MAGNA (ROW) 7 2020 2,034 Waymo (US) as
6 TOYOTA MOTOR (JP) 4 2017 1,737 G ab (ROW) ld
7 GENERAL MOTORS (US) 3 2021 1,643 C uise (US) as
7 HONDA MOTOR (JP) 3 2021 1,643 C uise (US) as
8 SAIC MOTOR (CN) 8 2020 1,247 WM Mo o (CN) p
9 FORD MOTOR (US) 4 2019 1,170 Ri ian Au omo i e (US) p
10 GENERAL MOTORS (US) 4 2019 1,028 C uise (US) as
10 HONDA MOTOR (JP) 4 2019 1,028 C uise (US) as
deal
ank SB_mo he
# o
in . yea
CVC in es o
amoun , EURmn In es ee ind. code
1 VOLKSWAGEN (EU) 1 2020 2,310 A go AI (US) as
2 FORD MOTOR (US) 1 2017 940 A go AI (US) as
3 TOYOTA MOTOR (JP) 1 2018 856 G ab (ROW) ld
4 HONDA MOTOR (JP) 1 2018 653 C uise (US) as
5 GENERAL MOTORS (US) 3 2021 548 C uise (US) as
5 HONDA MOTOR (JP) 3 2021 548 C uise (US) as
6 TOYOTA MOTOR (JP) 1 2019 535 Didi Chuxing (CN) mb
7 VOLKSWAGEN (EU) 2 2019 443 No h ol (EU) ene gy
8 TOYOTA MOTOR (JP) 1 2018 433 Ube (US) mb
9 MERCEDES-BENZ (EU) 2 2017 348 Beijing Benz (CN) p
10 MAGNA 6 2021 346 Waymo (US) as
17
Eigh o he op 10 ene gy deals belong o Volkswagen, who in es ed EUR752mn in No h ol h ough VW
G oup and Scania (deal included in Table 7), EUR100 million in 1Komma5° h ough Po sche Ven u es28,
EUR270 million in Quan umScape, and EUR63 million in G oup14Technologies, also ia Po sche. The wo non-
EU Au o25 companies in he op 10 anking o ene gy deals a e Ca e pilla (EUR131 million, Redwood) and
Honda (EUR74 million, Luna Ene gy). EU headqua e ed Au o25 such as S ellan is and BMW can be ound
among o he s u he down, bu close o he anking o he op ene gy deals.
Figu e 4 Des ina ion by sec o o ac i i y o in es ees showing olume o CVC in es men (le ),
and numbe o deal pa icipa ions ( igh ) summed o e Au o25 by HQ loca ion. Sou ce: JRC
elabo a ion, da a sou ce: Deal oom
As men ioned ea lie , he bulk o co po a e en u e capi al in es men s lew in o he au omo i e & senso
echnologies (as ) wi h 2/3 d o o al au omo i e CVC o Au o 25 companies, ollowed by ehicle p oduc ion
( p) wi h sligh ly less han a qua e o he o al unds (Figu e 5, le ). Ce ainly, hese wo sub-indus ies a e
he mos capi al-in ensi e ones. The key playe s in he au onomous & senso ech ield a e EU headqua e ed
Au o25 companies who in es ed EUR3.2 billion (Table A2, annex), which may seem o be a good news o he
companies o his egion because his is he key sub-indus y o he mode n au omo i e indus y wi h likely
he highes added alue in he au omo i e sec o and ha is likely o ensu e he la ges compa a i e
ad an ages in he echnological ace wi hin he sec o as a whole. EU i ms a e ollowed by Japanese
companies (EUR2.4 billion), and US companies (EUR1.9 billion). In es men s om companies om he h ee
la ges global economic egions ( he EU, he US and CN) a e mo e e enly ep esen ed in he ehicle
p oduc ion sub-indus y, wi h Chinese companies being somewha in he lead, in es ing EUR1bn s. EUR845
million o he US and EUR821 million o he EU companies (Figu e 5, le ). The ou emaining sub-indus ies
(EV cha ging, sea ch & buy & en , main enance, and na iga ion & mapping) ecei ed mo e limi ed amoun s
o capi al. I is no ewo hy he ela i ely highe sha e o EU Au o25 companies in EV cha ging (62% o o al
CVC ecei ed by his sub-indus y) and in he sea ch & buy & en (59%) subsec o as well as ha o Chinese
Au o25 companies in na iga ion & mapping (52%).
The au onomous & senso ech sub-indus y ecei ed no only he la ges in es ed amoun s, bu also he
highes numbe o deals, ha o disclosed deals as well as he la ges a e age deal sizes (Figu e 5, igh ). The
s onges concen a ion was in he US, whe e a ela i ely lowe numbe o deals coupled wi h signi ican
in es men s esul ed in an a e age deals size o EUR188mn, spiking ou om he se ies. The la ges deals on
a e age in ehicle p oduc ion ook place in China wi h an a e age in es ed amoun o EUR60mn pe deal, and
he same egion s ands ou wi h i s a e age deal size o EUR51mn in na iga ion & mapping. Howe e , in
na iga ion & mapping, sea ch & buy & en , main enance, and EV cha ging he gene ally low numbe o deals
a e no obus enough o a he eaching conclusions.
28 VW in es ed ano he EUR47mn in 1Komma5, oo, bu his deal does no each he op 10.
18
Figu e 5 Des ina ion by au omo i e sub-indus ies o Au o25 in es ees showing olume o CVC
in es men (le ), and he numbe o deals and disclosed deals as well as a e age deal sizes ( he
a io o he in es ed amoun s and he numbe o disclosed deal pa icipa ions) ( igh ) by HQ
loca ion. (as : au onomous & senso ech, p: ehicle p oduc ion, nm: na iga ion & mapping, m :
main enance, sb : sea ch & buy & en , e ie: EV cha ging). Sou ce: JRC elabo a ion, da a sou ce:
Deal oom
In compa ison o hei own o als, Japan headqua e ed Au o25 companies in es ed he la ges sha e o hei
capi al in as amoun ing o almos 90%. They a e ollowed by he EU in es o s wi h a ound wo hi d o he
o al capi al in es ed as well as US Au o25 in es o s wi h sligh ly mo e han 60% o hei own o al. As
men ioned p e iously, his is a no ewo hy de elopmen gi en he a he high impo ance o as in he
mode n au omo i e alue chain. Ano he in e es ing ac is ha al hough he EU lags behind he US and CN
on he EV ma ke , i is he main global economic egion in es ing in e ie. This may be due o an e en mo e
p onounced lagging behind in EV cha ging in as uc u e. Las bu no leas , sha e o Chinese headqua e ed
Au o25 CVC unds seem o be o e ep esen ed in nm. The easons may be mul iple, e.g. con inuous
in as uc u e de elopmen o a coun y o he size o China, sha e o anspo a ion companies using hese
echnologies, e c. (Figu e 6). Fu he esea ch is be needed o explo e he ulle se o easons behind hese
ela i e di e ences.
Figu e 6 Sha e o in es men s in au omo i e sub-indus ies o Au o 25 CVC companies in hei
o al au omo i e sec o in es men , by global egional headqua e s. (as : au onomous & senso
ech, p: ehicle p oduc ion, nm: na iga ion & mapping, m : main enance, sb : sea ch & buy & en ,
e ie: EV cha ging). Sou ce: JRC elabo a ion, da a sou ce: Deal oom
# deals p as nm m sb e ie
EU HQ co p. 27 50 20 11 31 20
US HQ co p. 19 15 9 4 3 5
CN HQ co p. 17 30 8 3 6 5
JP HQ co p. 10 40 3 1 6 6
ROW HQ co p. 7 26 8 7 6 7
To al 80 161 48 26 52 43
# disclosed deals p as nm m sb e ie
EU HQ co p. 23 40 14 7 22 16
US HQ co p. 17 10 8 2 3 4
CN HQ co p. 17 27 7 3 5 3
JP HQ co p. 8 34 3 1 5 4
ROW HQ co p. 7 25 8 5 6 5
To al 72 136 40 18 41 32
a e age deal size p as nm m sb e ie
EU HQ co p. 36 79 8 5 8 28
US HQ co p. 50 188 18 11 6 17
CN HQ co p. 60 14 51 7 7 5
JP HQ co p. 20 70 8 7 11 7
ROW HQ co p. 27 34 7 4 2 32
To al 42 64 17 6 7 23
19
3.5 Loca ion o he s a up in es ees
Acco ding o ou sample, Au o25 in es o s om each global economic egion unde sc u iny a ge mainly US
headqua e ed s a ups, excep o Chinese in es o s, who in es mainly domes ically. Likewise, US
headqua e ed Au o25 in es o s p e e o in es mainly a home. Eu opean and Japanese Au o25 in es o s
we e he la ges capi al expo e s, he la e being he mos signi ican one compa ed o i s own o als: while
Japanese s a ups included in he sample we e inanced exclusi ely (100%) by Japanese Au o 25 in es o s,
only 8% o he la e a ge ed domes ic s a ups (i.e. a ela i ely modes amoun o EUR566mln in o al). EU
and especially Japanese s a ups go unding mainly om domes ic esou ces29, which in he p esen case
means i s , a ai ly la ge exposu e o me ely i e la ge au omo i e companies and second, i may become a
limi ing ac o i home esou ces o capi al d ied up o any eason, especially hose un ela ed o hei own
business, such as mac oeconomic, o indus ial policies. US in es ees a e he mos in e na ionalised in e ms
o unding (Figu e 7)30.
F om 2010 o 2023 he amoun o Au o25CVC in es men s in he US was 6.21 imes bigge han in he EU
(i.e. 13904/2238, Figu e 7, le ) which is e y simila o he US o EU a io o he o al amoun o VC
in es men in he espec i e economies o he same pe iod – i.e. 6.2731. By his eckoning, he ela i e
amoun o EU Au o25 CVC in es men made in he EU compa ed o ha made by he same i ms in he US
(i.e. 23% o he o al, Figu e 7, igh ) is conside ably highe han he alue co esponding o an amoun o
in es men p opo ional o he ela i e size o he o al VC in es men s in he wo egions (i.e. 14%, based on
own calcula ions using Pi chbook da a). While his means ha he EU Au o25 CVC in es men s show a ce ain
deg ee o home bias in p opo ional e ms, his in no way diminishes he se ious necessi y o o e coming he
pe sis ing de ici o he o e all EU VC ma ke compa ed o ha o he US.
Figu e 7 CVC in es men lows be ween HQ egions o he Au o25 in es o s and loca ions o he
unded s a ups, EUR million (le ) and % o domes ic p esence: Column 1: % o CVC by Au o25
i ms om a gi en egion o coun y in es ed domes ically (x) ; and Column 2: x as % o all CVC
in es men in a gi en egion ega dless o i s o igin ( igh ). Sou ce: JRC elabo a ion, da a sou ce:
Deal oom
29 In ou da ase he e is only one single deal in ol ing a non-Japanese Au o25 and a Japanese in es ee and he amoun o his deal is
unknown. I is a 2019 ea ly VC in es men o Volkswagen in Takam su, a Japanese pha maceu ical company.
30 The signi ican Japanese p esence in he ROW unding is due o he massi e in es men s o Toyo a (mainly) and Honda ( o a lowe
ex en ) in he Singapo e based mobili y and logis ics & deli e y company G ab (Sou h-Eas Asia’s UBER), o alling EUR1.6 bn (44%
o he o al in es men s in he ROW egion).
31 Based on Pi chbook da a – i.e. o al VC in es men in he US o e he yea s 2010-2023 was 6.27 imes bigge han ha o EU27 -
€1870 billion [US]; €298.2 billion [EU27] (consul ed on-line Sep 2024)
20
3.6 Focus on he s a ups
The e a e 827 s a ups in ou sample. Mos o hese companies a e ope a ional, only 21 companies om he
sample a e ei he closed (12 i ms) o classi ied by Deal oom as o low-ac i i y (9 i ms). The companies a e
o e whelmingly no -exi ed (p i a e) companies: 688 companies (83% o he o al sample) ha e no ye been
subjec o an exi ed ound such as a me ge , an acquisi ion, an IPO, e c. 32 The p e e ed exi s a egy is a
me ge o acquisi ion (M&A) deal. A bi mo e han h ee qua e (76%) o he 139 exi ed companies we e
subjec o such a deal (102 acquisi ions, 4 me ge s). Only abou one qua e (33 companies, 24% o he o al)
o he s a ups included in he sample ha e gone public ia an ini ial public o e ing (IPO), Figu e 8, le .
Figu e 8 S uc u e o he numbe o s a ups unded by Au o25 ela ed CVC in es o s in 2010-
2023, by exi s a egy adop ed (le ) and s uc u e o he ull sample o he 827 s a ups unded
by Au o25 ela ed CVC in es o s in 2010-2023 (). Sou ce: JRC elabo a ion, da a sou ce: Deal oom
In e ms o numbe o companies inanced, Au o25 in es o s p e e ed o p o ide CVC unding mainly o
companies c ea ed a e 2008-2009 (Figu e 9, le ), co esponding o he a e ma h o he 2008-2009
inancial c isis33. Howe e , mo e signi ican amoun s we e disbu sed o companies launched be ween 2009
and 2016, peaking in 2016, al hough his yea may be somewha biased by he A go AI deal o a o al
amoun o abou EUR3.25bn. Howe e , e en wi hou his deal, 2016 as launch yea is s ong in e ms o
inancing ecei ed, signi ican ly s onge han la e launch yea s. In he mean ime, Au o25 companies we e
no keen on p o iding signi ican inancing o he e y younges i ms, especially hose launched a e 2021.
They we e less keen on s a ups c ea ed be o e he 2008-2009 economic c ises, despi e he huge liquidi ies
exis ing on he global inancial ma ke s in he unning-up o he c isis. In o he wo ds, companies launched
be o e he pe iod unde sc u iny (i.e 2010-2023) ne e became eally in e es ing o Au o25 in es o s (Figu e
9, igh ). This is because au o i ms mos ly go o la e s age VC in es men s (i.e. ea ly +la e VC), as we ha e
seen his a Figu e 1. The ela i e pauci y o seed CVC deals compa ed o ea ly and la e s age VC deals can be
obse ed also i espec i e o he sec o o ac i i y as i can be seen on a da a ex ac om Pi chbook (Figu e
A2, Annex). We can conclude ha he age o he s a ups do ma e o CVC in es men decisions.
32 We conside he i s exi ound. No e ha some companies may hen su e a change a e wa ds, such as me ge , acquisi ion, going
p i a e again, e c. Fo example, he s a up Velodyne Lida was i s loa ed on he s ock ma ke ia SPAC IPO in Sep embe 2020 ( o a
alue o $bn1.8) and a e wa ds was acqui ed by Ous e in No embe 2022,
h ps://s27.q4cdn.com/377532724/ iles/doc_p esen a ion/2023/closing-upda e-on-me ge -o -equals-be ween-ous e -and- elodyne.pd
33 Fu he esea ch is needed o decide whe he o no his is only a coincidence.
# s a ups sha e
ACQUISITION 102 12%
IPO 33 4%
MERGER 4 0%
P i a e (no ye exi ed) 688 83%
To al 827 100%
21
Figu e 9 His og am o he numbe o s a up companies by hei launch yea (le ) and o he
amoun s o CVC in es men s ecei ed by hem in 2010-2023 om Au o 25 companies ( igh )
Sou ce: JRC elabo a ion, da a sou ce: Deal oom
22
Main messages
Co po a e en u e capi al by leading EU au omo i e i ms is on a pa wi h compe i o s and is being pu in o
he echnological inno a ion ha is ans o ming he sec o : au onomous d i ing, senso echnologies, e c.
Wha is wo ying, howe e , is ha mos CVC in es men by EU au omo i e leade s goes o US-based s a ups.
In con as , CVC om leading Chinese au omo i e i ms, o example, is in es ed domes ically.
#1 Co po a e en u e capi al is an impo an ool o au omo i e i ms o ap
in o high-po en ial, s a up-d i en inno a ion
In addi ion o adi ional app oaches o expanding knowledge-based asse s (in-house and collabo a i e R&D,
IP managemen , inno a ion p ocu emen , join en u es, me ge s and acquisi ions), au omo i e i ms also
a ge new echnologies h ough s uc u ed ‘Open Inno a ion’ (OI) ex e nal collabo a ion wi h s a ups, clien s,
supplie s, and academic and public esea ch o ganisa ions. One p ominen o m o OI is co po a e en u e
capi al (CVC) in which au omo i e i ms acqui e equi y in inno a i e s a ups. We ha e analysed all CVC unds
associa ed wi h he sec o ’s 25 main co po a es, aking he op i e pe egion (Eu ope, US, China, Japan,
Res -o - he-Wo ld) – which, o he sake o simplici y, we e e o as ’Au o25’.
While agg ega e au omo i e CVC da a show a conside able inc ease o e he pas decade wi h apid
in es men g ow h eco ded om 2014 o 2021, CVC in es men le els a y conside ably om i m o i m
wi h a hand ul o incumben au omo i e companies domina ing. While au omo i e CVC in es men is
subs an ial, has inc eased o e he yea s and has become one o he backbones o co po a e’s open
inno a ion s a egy, he o e all le el emains – on a e age – a leas an o de o magni ude lowe han
in e nal R&D34.
Mos Au o25 CVC in es men om 2010 o 2023 – abou 56% - wen o s a ups ac i e in a eas di ec ly o
indi ec ly ela ed o au omobiles. As in o he indus ial sec o s, a di e si ica ion pa e n can also be obse ed
wi h signi ican amoun s also in es ed in s a ups ac i e in o he ields such as ene gy (9%) o ICTs (7%).
CVC in es men di ec ly ela ed o au omobiles amoun ed o €13.5 billion, om 412 deal pa icipa ions in
s a ups ac i e in six di e en sub a eas dis ibu ed As ollows: 64% in au onomous d i ing & senso
echnology s a ups; 23% in ehicle p oduc ion s a ups; only 5% in EV cha ging & ela ed in as uc u e
s a ups, wi h he emainde going o s a ups ac i e in he na iga ion & mapping, main enance o sell-buy-
en segmen s. Howe e , while he In e na ional Ene gy Agency expec s he public EV cha ging segmen o
unde go a six- old inc ease, p i a e cha ging will con inue o domina e. By HQ loca ion, Japanese EU and US
i ms in es ed 90%, 66% and 60% espec i ely in au onomous d i ing & senso echnology. Chinese i ms
howe e ha e been in es ing in he pe iod conside ed a ela i ely high p opo ion o CVC in na iga ion and
mapping and a ela i ely low p opo ion in EV cha ging & ela ed in as uc u e.
#2 Mos CVC in es men by EU au omo i e i ms goes o he US – indica i e o
he less-de eloped EU VC ma ke o scale-up inancing
Au omo i e CVC ac i i y is ypically handled by o ices close o he headqua e s o he pa en i m (e.g.
S u ga , Ge many – home o Me cedes-Benz and Po sche; Tu in, I aly – Fia Ch ysle Au omobiles; o
Tokyo/Nagoya – Toyo a). Mos also ha e CVC o ices in loca ions a ound he wo ld close o alen and en u e
oppo uni ies.
The analysis shows ha US-based s a ups a e he main bene icia ies o global au omo i e CVC in es men
wi h EU, Japanese and ROW Au o25 i ms in es ing mo e in US based s a ups han in domes ic ones. Chinese
and US Au o25 in es o s in es mainly a home. On he o he hand, s a ups loca ed in he EU and especially
in Japan ge CVC unds mainly om domes ic (by HQ) Au o25 i ms.
Mos (78.5%) o he CVC deals in his sample in ol e wo o mo e in es o s. Some imes hese o he in es o s
a e o he au omo i e i ms bu o en hey a e p i a e VCs and o he in es o s no ac i e in he au o sec o .
Single in es o deals p obably in ol e cases whe e he co po a e in es o expec s exclusi e o p io i y access
o wha he s a up in es ees a e de eloping. Howe e , he p eponde ance o mul i-in es o deals is indica i e
o a coope a i e app oach by co po a es o CVC in es men s, possibly because ei he he echnologies a e
high- isk o i makes good business sense o join ly suppo he de elopmen by in es ees o sha ed
echnology s anda ds.
34 See also sec ion 1.4.1 Co po a e Ven u e Capi al in The 2021 EU Indus ial R&D In es men Sco eboa d
