With 2023 drawn to a close, it’s worth reflecting on what a noteworthy year it was for mobility, and look forward to the new year, which promises even more tumult for the world of transportation.
We’re particularly proud of everything MobilityFund has accomplished, starting off with reaching first close on Fund II, capitalizing on the impressive results of our initial portfolio. From that second fund we’ve already made investments in a number of companies that I believe will drive forward that next mobility revolution: Colonia – which is unlocking efficiencies in European trucking through its dynamic p2p marketplace, Flowfox – which is cutting costly waste in maritime shipping thanks to automation, Pionix – which is developing the tools to turbocharge the EV charging revolution, and more.
Beyond our investments, 2023 was also a year of tremendous growth for the fund, as we onboarded new Venture Partners with diverse backgrounds and globe-spanning expertise. With our boots-on-the-ground knowledge of the entire mobility and automotive space, we’ve been fortunate to guide OEMs and legacy transportation firms as they navigate the mobility revolution.
Looking to 2024
That said, it’s not fully smooth sailing for the entire field of new mobility. Looking back at just the past few weeks, we’ve seen household-name companies go bankrupt in the micromobility space, while others in the autonomous vehicles sector have retrenched precipitously. I expect this choppiness in the B2C space to continue in the new year, as the regulatory environment continues to stiffen and late-stage capital for undifferentiated consumer-facing brands remains tight.
In light of that, our B2B strategy and investing in earlier sage companies has not been as affected by the macro environment, as we fund the “picks and shovels'' that are necessary for any player competing in the mobility arena. As an example, no matter which startup or incumbent will eventually become the top EV charging network, or the foremost smart logistics firm, it’s safe to say they’ll all need the intelligent tools (that our portfolio companies provide) that make their own operations possible and profitable.
With the Fed signaling interest rates are likely to taper in the back half of 2024, and recent data showing investor optimism recovering, I expect to see newfound enthusiasm for the early stage venture and startup space. With more favorable macro conditions, we’ll see more latecomers crowding back into the mobility space. Let’s chat if you want to stay two steps ahead of the crowd…
- Sam
P.S. I’m in Las Vegas for CES, reply back to this email if you are as well and would like to meet.