Electric vehicle start-ups get charged up on $2 billion funding in 2016

Electric car charging. Photo: Pixabay

Investment in electric vehicle start-ups, till November 17, 2016 has grown by 84%, at $1.6 billion from $920 million a year ago, according to CB Insights. The number is expected to reach $1.9 billion by the end of the year with a total 52 deals up from current 46.

Electric vehicle start-ups had received massive funding from 2010 to 2012 only to plummet in 2013. This was due to EV makers such as Fisker (now Karma Automotive) and its battery supplier A123 both going bankrupt during the period of 2012-13. Several other companies too went bankrupt during this period as funding stopped.

Funding to electric vehicle start-ups saw a large 182% growth in 2015 as funding grew to $920 million from just $326 million in 2014.

These start-ups include those working on powertrain components to electric vehicle charging infrastructure and new OEMs looking to compete with electric vehicle companies.

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Many of these electric vehicle start-ups which have received funding are Chinese-based or Chinese-backed with WM Motor receiving $1 billion investment in August. Others include Future Mobility, Faraday Future and Lucid Motors (formerly Atieva).

US-based electric vehicle start-up Zoox received funding of $250 million this year across three rounds.

Investors have also backed a healthy variety of other startups this year, such as electric bus maker Proterra ($70 million Series B), charging network and app ChargePoint ($50 million Series F), and wireless charging tech developer Evatran ($12.3 million across two rounds), said the report.

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