A new early-stage venture capital firm in Atlanta raised its first fund, focused on automotive technology.
Automotive Ventures, led by CEO Steve Greenfield, closed a $7 million fund to support auto tech innovation around the world. The fund has 70 investors and seven companies in its portfolio.
"Automotive and mobility have so many uncertainties right now,” Greenfield said. “We’re going to see more change in the next 10 years than we saw in the last 100.”
It's the latest announcement of venture capital focused on early-stage startups. Overline and Silicon Road Ventures closed their first funds in the spring. Zane Venture Fund and Sound Media Ventures are in the middle of capital raises.
Atlanta tech leaders say the influx of capital shows signs of a healthy innovation ecosystem. The city’s lack of capital has long been a disadvantage for tech growth, but now investors are turning that weakness into an opportunity to capitalize on demand for more money.
Automotive Ventures is looking for innovations in the retail car market and dealership efficiency as well as autonomous and electric vehicles.
Greenfield, who worked for Cox Automotive’s Manheim, says Atlanta has a promising auto tech industry, though the firm hasn’t invested in any local companies yet. Richmond, Virginia-based startup HopDrive is its only Southeast investment.
Auto tech may be on the rise in Georgia, thanks to the state's mix of automotive corporations, innovations and manufacturers.
Cox Automotive and Asbury Automotive Group are local industry giants that could become customers or pioneers for new auto tech solutions, which they’ve shown with investments into e-commerce for retail car purchases. Peachtree Corners is host to the Curiosity Lab, which provides testing space for autonomous mobility. SK Innovations’ electric vehicle battery plant is already attracting more components of the EV supply chain and has strong support from the state.
Greenfield and senior venture associate Justin Charbonneau are first-time fund managers, but the two Emory University graduates are familiar with the Atlanta technology ecosystem.
Greenfield founded now-defunct CarLingo in the Atlanta Tech Village in 2014, starting his stint as an entrepreneur. Charbonneau shut down his startup, GrapeConnect, in 2020 after running it for four years.
The two entrepreneurs are now focused on the Automotive Ventures fund.
Automotive Ventures had a goal of a minimum of $5 million when it started soliciting investments in July 2020. The firm writes initial checks between $100,000 and $200,000 for pre-seed and seed rounds, according to its website. Greenfield said about half the fund is reserved for follow-on investments.
