🤠 Spotlight on Innovation: Transformative Events and Dealerships Riding the Wave

November 21, 2024
11:30 am

These past few days have been packed with transformative events in both of our hometowns where innovation has been the key topic for everyone, including dealerships—whom we discuss in this edition.

Welcome to The Paddock, your go-to place for the latest insights and trends revolutionizing the mobility sector globally. 🚗

— Curated by Rodolfo, Enrique, Gastón, Cecy, and Bernardo: the Proeza Ventures team. 💪

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📌 Do you know a startup reshaping mobility by being more efficient, safer and environmentally friendly? We want to meet them! 📩

🏁 Check our investment thesis and learn more about our Portfolio Co.

🪩 Proeza Ventures Spotlight

As you know, Houston and Monterrey are the cities we proudly call home, and our Managing Partners, Rodolfo Dieck and Enrique Zambrano, attended two transformative events reshaping energy, mobility and sustainable technologies.

Rodolfo was a mentor at the Inaugural Houston Energy and Climate Startup Week!

In Houston, the inaugural Energy and Climate Startup Week took place, offering an incredible opportunity to connect with industry leaders, innovators, and changemakers driving sustainable solutions for a cleaner, brighter future. More interestingly, a lot was said about how big oil and gas companies are innovating and collaborating with startups to effect real change. The key, as ever, will be open communication and cross collaboration among all relevant stakeholders.

Enrique participated as a speaker at the Venture Capital panel during Expo PyME, hosted by CAINTRA Nuevo Leon.

Meanwhile, in Monterrey, our friends at CAINTRA invited us to share our knowledge and experiences in the Venture Capital world alongside two well-known players, FEMSA Ventures and SIGMA.

🏆 Our PortCos News

🚗 Sustainable delivery with DriveU

Congratulations to Coco on the newly announced partnership with Uber! This is a significant milestone that highlights the vision of providing sustainable local delivery, everywhere. We’re proud to support you on this journey through DriveU, one of our portfolio companies and a key partner for Coco.

👉 Check it out here!

⚡ Exciting Milestone for Electric Era

In August, Electric Era successfully charged over 1,000 electric vehicles across their customer EV charging stations, achieving an impressive 99.5% uptime. This milestone highlights the exceptional efforts of the ops and engineering teams. Kudos to everyone involved for their outstanding work and dedication!

👉 Discover more here!

🎤 Solvento’s Show Time

We’re thrilled to announce that Solvento will participate in the TradeHub Summit 2024. Co-Founder and COO, Guillermo Bosch, will be speaking on the panel “Innovative Startups in Foreign Trade, Logistics, and Customs Operations”. Don’t miss this opportunity to hear from industry leaders and explore cutting-edge solutions!

👉 Learn more about the event here!

💻 The Future of Car Dealerships

E-commerce has revolutionized the car sales landscape, making digital marketing and agency digitization crucial for meeting the demands of today’s buyers. With online platforms like Amazon and OEMs’ direct-to-consumer models, such as Tesla’s, reshaping the industry, dealerships face a critical decision: embrace the digital revolution or risk becoming obsolete.

Here is what’s driving the shift:

E-Commerce Transformation: The rise of online sales has set new expectations for car buyers, including 360-degree model views, instant responses, transparent pricing, and seamless online transactions. While tech-savvy younger generations are leading this trend, older buyers are increasingly adopting digital car-buying experiences.
Tech Integration: The adoption of digital tools like AI chatbots, data analytics, and online financing is transforming dealership operations. To stay competitive, agencies must:
- Understand new buyer preferences.
- Provide essential digital tools.
- Use data to deliver personalized experiences.
Changing Buyer Behavior: The demand for convenience and transparency is growing. Dealerships need to blend online ease with in-person service by offering features such as home deliveries and virtual test drives.
Streamlined Financing: Online integration of financing options allows customers to compare loan rates and complete transactions digitally, enhancing convenience and transparency.
Evolving Dealership Roles: Physical dealerships may transition into experiential hubs, focusing on immersive interactions and exceptional service. Maintaining a strong online presence and engaging with the community will be crucial.

However, not everything is as easy as it seems. The automotive industry faces several significant challenges in this digital transformation that need to be addressed. While there are many opportunities for growth, there’s still considerable work to be done to overcome these obstacles.

Challenges and opportunities:

Competing with Direct Sales Models: Direct-to-consumer models like Amazon or Tesla’s present a significant challenge by offering a streamlined, online-first buying experience. Traditional dealerships must adapt and offer unique value that online-only models can’t match (ie. personal touch and post-sales servicing, among others).
Navigating Evolving Regulations: Whileregulations still require vehicles to be sold through dealerships, this is subject to change. Dealerships must stay informed about regulatory shifts and adapt their strategies accordingly.
Managing Higher Operational Costs: Physical dealerships face higher overhead costs compared to online-only sellers. This can result in higher prices for consumers and a need for dealerships to find efficiencies and value-added services to remain competitive.
Ensuring Data Accuracy: Ensuring that data is clean and verified is crucial for maintaining trust and accuracy in sales. Particular in used car transactions or markets like LATAM, where informality is prevalent, double-checking data becomes even more important to avoid discrepancies.

Looking Ahead

Dealerships aren’t going away—they’re just shifting lanes. While challenges like competing with direct sales models and managing operational costs remain, embracing the digital revolution is key to staying ahead. By adapting to new technologies and consumer expectations, dealerships can continue driving success in this rapidly evolving landscape. Buckle up for the ride ahead!

📗 Interesting Reads

🔒 Tackling Fraud in the MSP Sector

Recent fraud spikes are raising concerns across the MSP sector. At Deftpower, we’re tackling this with advanced algorithms designed to detect suspicious behavior and prevent losses. Key measures include monitoring concurrent sessions, flagging impossible travel distances, and identifying high energy consumption to safeguard both clients and drivers.

👉 Check the full note shared by Jacob van Zonneveld, Deftpower CEO, in this Linkedin post.

🚲 Considering CargoBikes for business?

Cargo bikes come in various forms—bicycles, tricycles, and even four-wheelers—designed for transporting people, goods, and services. With innovations making classifications more complex, Joyride has put together a guide that explores common business configurations and lists suppliers for your fleet.

👉 Check the full note!

📯 Hot Deals

At Proeza VC we check many deals weekly. Here are the Top deals that caught our attention recently!

🚀 aifleet, an Austin, Texas-based tech-driven trucking company, raised $16.6 million in Series B funding. Tom Williams led the round and was joined by Volvo Group Venture Capital, Obvious Ventures, Ibex Investors, and others. (10.Sep.2024)

🚀 Beyond Math, a San Francisco and UK startup that develops AI-powered simulation tools that help engineers optimize designs for objects such as Formula 1 cars without the need for physical prototypes or lengthy supercomputer simulations, raised a $8.5 million seed round led by UP.Partners, with Insight Partners and InMotion Ventures also anteing up. (20.Ago.2024)

🚀 Clearly, a London startup that provides tools for fleet operators to track and optimize their trucks’ environmental impact, raised a $4.3 million seed round co-led by Pace Ventures and Nine Realms, with Mobilion, Next Gear, and M1720 also taking stakes. (13.Ago.2024)

🚀 Emiteaí, a a Brazilian end-to-end logistics management SaaS, raised $520k in a funding round led by Bossa Invest. GVAngels, GR8 Ventures and Bowl Ventures also participated in the round. (26.Ago.2024)

🚀 Fleet, a SF-based modern commuter benefits management platform, raised a $2.5 million seed round led by Congruent Ventures with the participation of Great Oaks Venture Capital, Plug and Play Ventures, Rally Cap, and Virta Ventures. (27.Ago.2024)

🚀 Foundation Robotics, a SF-based humanoid robotics startup cofounded by the CEO of Synapse raised $11 million from Tribe Capital and angels. (12.Jun.2024)

🚀 Forterra, a Clarksburg, Md.-based self-driving technology company, raised $75 million in Series B funding. Moore Strategic Ventures, XYZ Venture Capital, and Hedosophia Venture Capital led the round and were joined by Standard Investments and existing investors Crescent Cove Advisors, Enlightenment Capital, and Four More Capital. (10.Sep.2024)

🚀 Fresh Bus, a Mumbai-based all-electric intercity bus startup raised $10.5 million in a Series A funding round led by VC fund Maniv with participation from Shell Ventures and Alteria Capital. (13.Ago.2024)

🚀 Grid Status, a US-based data and analytics platform for the electric grid raised $8 million round led by Energize Capital with participation form NFDG Ventures, Rayburn Electric Cooperative, Evergreen Climate Innovations and other individual investors. (21.Ago.2024)

🚀 Guidewheel, a San Francisco startup that offers an AI-powered FactoryOps platform for the factory floor raised $31 million round led by Decarbonization Partners, a partnership between BlackRock and Temasek, with participation from Ecolab, Rethink Impact, and GSBackers. (13.Ago.2024)

🚀 Intramotev, a St Louis, MO, that develops autonomous, battery-electric railcars designed to transport freight without the need for traditional locomotives, raised a $14 million Series A round co-led by Flybridge Capital Partners and Alpaca VC, with Advantage Capital, Cathcart Rail, and Idealab also contributing. (15.Ago.2024)

🚀 Kognic, a Sweden company specializing in data annotation for AI, has raised €8.8 million in a funding round led by existing investors, including Metaplanet, Neudi Kapital, and Stena Sessan. (12.Ago.2024)

🚀 Korint, a Paris startup that provides B2B mobility insurance products such as coverage for vehicle and bike fleets used by businesses, raised a $5.5 million round. Ventech led the transaction, with 360 Capital also pitching in. (06.Sep.2024)

🚀 MMI, a Polish startup that manufactures small and medium-size electric and hydrogen-powered buses, raised a $8.6 million round. Vinci SA was the lead investor. (27.Ago.2024)

🚀 Optimotive, a Canada-based AI-driven robotics developer for outdoor construction automation, raised $2 million in seed funding. Version One Ventures led the round and was joined by Garage Capital and Newlab. (10.Sep.2024)

🚀 Portex, a San Francisco startup that helps SMBs manage shipping tasks, communicate with freight partners, and automate tasks like price quotes and freight tracking, raised a $6.25 million seed round. Footwork Ventures was the deal lead, with Cowboy Ventures and Base 10 also contributing. (05.Sep.2024)

🚀 Reshape Automation, a San Francisco, Calif.-based automation platform for manufacturer and warehouse operators, raised $5 million in seed funding. Ironspring Ventures led the round and was joined by Haystack, Supply Chain Ventures, Remus Capital, Expansion VC, and existing investors Schematic Ventures and Bee Partners.. (10.Sep.2024)

🚀 Skarper, a London-based e-bike technology startup backed by Olympic cyclist Chris Hoy, raised €5.3 million led by Adjuvo. (04.Sep.2024)

🚀 Spare, a Canada-based mobility operations software provider, raised $30.9 million in Series B funding. Inovia Capital led the round and was joined by existing investors Kensington Capital and Nicola Wealth. (10.Sep.2024)

🚀 Uptime AI, a San Francisco-based startup developing an AI platform for firms in the industrial sectors, raised a $14 million Series A led by WestBridge Capital. (13.Ago.2024)