VCs facilitate successful OEM-start-up partnerships

Despite the expansive capabilities that come with a global corporation, many vehicle manufacturers have found it necessary to engage with companies that in some cases have zero revenue, no product to market and little more than an idea.

The automotive industry’s intentions to deliver self-driving vehicles with electric powertrains are now well known, and coupled with the prospect of online sales and shared mobility services, there is growing interest from the start-up community. Entrepreneurs have pounced on new opportunities relevant to these emerging areas, but it is the work of venture capital firms (VCs) that has enabled game-changing ideas to move forward and gain funding.