A glance again on the developments in automotive and mobility financing – company regulation / business regulation

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A look back at the trends in automotive and mobility finance Fin

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Global funding for companies in the automotive and mobility sectors declined to $ 27.6 billion in 2020, a 5% year-over-year decrease, with 522 transactions completed, according to the latest report and webinar from CB Insights on State of mobility. While the first half of 2020 was particularly hard hit by the COVID-19 pandemic, the second half of 2020 saw increased investor interest in the industry as companies dealt with electrification and autonomous driving.

As the shift to later financing and the emergence of new automotive and mobility unicorns shows, automotive and mobility companies remain private longer. Globally, there are now 45 unicorns in the industry, valued at over $ 226.8 billion.

In 2020 there were 107 exits from auto and mobility companies, including 22 SPAC deals. Companies developing technology to support electric vehicles (EV) accounted for 58% of total SPAC deals in 2020.

The funding highlights 2020 for certain notable subsectors are highlighted below:

  • EV company 193 deals closed in 2020 raised $ 12.8 billion, with $ 8 billion going to original equipment manufacturers (OEMs).
  • Autonomous vehicle companies raised $ 7.3 billion in 105 deals, with the average deal up 17% year over year to $ 104 million.
  • Connected vehicle Companies
    $ 1 billion raised, down from $ 2.2 billion in 2019, of which 70 were completed in 2020. Analysts believe the move to electrification and autonomous vehicles could have led to this steady decline.

As we move forward in 2021, given the global focus on ESG, there will continue to be a special focus on zero-emission transport and commercial vehicle innovations. Due to the impact of the pandemic on our daily lives, analysts expect the emergence of new mobility technologies, including robotic taxis, micromobility and personal electric vehicles, as well as digital car dealerships.

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This article by Mayer Brown contains information and commentary on legal issues and developments of interest. The foregoing does not constitute a comprehensive treatment of the subject under discussion and is not intended as legal advice. Readers should seek specific legal advice before taking any action in relation to the matters discussed here.

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