Stellantis Spends on Start-Ups With Internal VC Fund
Stellantis places a bet on tech start-ups with hopes that the successful ones offset the high percentage that likely won’t survive.
Stellantis, the fourth largest automaker in the world by sales, is showing a keen interest in small companies, start-ups and even a “spin-out” from its own operations to weave together an ecosystem of investment tied to its electrification plans and strategy.
The company announces it is allocating about $100 million of a $300 million fund to 10 start-ups and one outside venture fund. The recipient companies were selected by a committee within Stellantis.
“Transforming Stellantis into a mobility tech company means we need to have the mindset of a start-up, focused on our customers and working with a dash of impatience,” says Ned Curic, Stellantis chief technology officer. “We are using the strength of Stellantis Ventures to connect with companies that are developing cutting-edge technology that we believe can transform the in-cabin experience and improve the mobility sector, for our customers and for society as a whole.”
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The roster of investments:
Nauto: Has deployed artificial intelligence and computer vision technology combined with advanced risk data science to over 800 commercial fleets to help save money and lives through safer driving. The Nauto solution will be available this summer in the U.S. on Stellantis commercial fleet vehicles.
Trails Offroad: Staffed by off-road experts and enthusiasts, Trails Offroad offers a digital library of more than 3,000 detailed off-road trail guides throughout the U.S. and Canada that can be loaded in the Jeep Uconnect system. Beginning this summer, some new Jeeps will have access to over 200 notable trail guides, including 62 Jeep Badge of Honor trails.
Beweelsociety: This is a start-up with roots inside Stellantis. Beweelsociety is a developer of connected e-bikes and provider of a wide range of services from purchasing to cycling through one unique digital app, including financing, insurance, facilitation and care services (maintenance, anti-theft). The first e-bikes will be available to purchase from specialized cycling networks and technology-focused retailers in Europe, starting late this year. The company uses bikes from its Peugeot brand.
6K: This company enables advanced sustainable manufacturing to ensure clean, low-carbon emission material production. 6K’s UniMelt plasma process is a cutting-edge platform for producing domestic sustainable critical materials for EV batteries, 3D printing and numerous other applications.
Electra Vehicles: A leading supplier of battery software solutions for electric mobility. Electra provides active and adaptive controls for battery-management systems, predictive battery analytics and battery-pack design software.
Envisics, a globally renowned pioneer of dynamic holographic technologies and its application for augmented reality head-up displays and automotive sensor systems.
Geoflex, a worldwide operator of satellite-positioning augmentation technology designed to augment accuracy, integrity and continuity of operation of all global navigation satellite systems receivers, regardless of brand.
Lyten: Creator of Lyten 3D Graphene, which is a unique decarbonization materials platform for a wide range of advanced applications: lightweight composites for reduced vehicle weight, advanced sensors to improve driver experience and a breakthrough highly sustainable lithium-sulfur battery that uses zero nickel, cobalt or manganese, has higher energy density, a smaller carbon footprint and enables supply chain independence.
NetZero, a climate venture specializing in long-term carbon removal from the atmosphere by turning agriculture residues into biochar, a very stable form of carbon. Biochar can be mixed with agricultural soils, improving yields and reducing the need for fertilizers.
Viaduct, an artificial intelligence platform designed to improve vehicle analytics for quality and maintenance. The platform deploys its machine learning algorithms to identify anomalies in fault and sensor data, predict vehicle health and enhance preventive maintenance routines, making vehicles safer, more reliable and personalized.
Stellantis says the reason for the internal venture fund is to take advantage of the opportunity to forge relationships with young and new companies that are developing technologies and services that the automaker views as scalable in the age of electrified and connected cars, autonomous driving and more.
“We want to see a return on our investment, but this is more about how we serve our customers better by putting the benefits these companies are innovating into the hands of consumers,” says Adam Bazih, head of Stellantis Ventures. We are trying to create an ecosystem of investments and partnerships around electrification and a few other tech categories.”
Investing in start-ups is a bit fraught. Ford had taken an equity stake in EV truck/SUV maker Rivian before it went public. After getting a huge initial benefit from the IPO, Rivian shares have tanked and Ford wrote down its investment last year, taking a charge of $7.3 billion.
“These are high-risk bets by definition…with 70% to 80% likely to be wrong,” says Bazih. “But the hope is that the other 20% to 30% yield returns that more than make up for the losses on the other side.”
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