With the global push towards a greener planet the Canadian federal government has joined the efforts of the league of nations announcing that they will ban the sales of gasoline-fueled cars in the near future to promote a healthier, greener planet. For Canada specifically, the phase out date for gasoline vehicle will be the year 2035.
With this new legislation in effect, the push towards moving away from gasoline powered automobiles to electric by 2035 has fueled rapid expansion in the EV marketplace. WIth this rapid growth, comes capital requirements and thus the entry of Venture Capital. Venture capital investments in the EV space has been growing steadily globally over the past several years.
In 2021, EV startups saw over $3.6 billion dollars pour into their sector, specifically for battery technology from venture capital, private equity and strategics. When we talk about strategics, the biggest of them investing into EV startups is the car manufacturers. With legislation quickly approaching pushing for electric vehicle platforms to replace traditional gasoline / diesel cars – the car manufacturers are actively looking to make strategic bets in this developing EV eco-system.
Overall, a total of $17.8 billion dollars was invested into the EV market in general once again led by global venture capital firms. Emerging electric car manufacturers, namely Rivian took down a considerable investments from the investment community. China’s Weltmeister is another notable company that had similar success in raising capital for their platform.
In 2022, the investment trend into EV has continued to accelerate and we see this continuing on well into 2023 and the coming years. Batteries, charging technology and grid infrastructure have all become growth niches in this sector.
Launch Capital and the EV Market
Launch Capital is actively partnering with electric vehicle startups to assist in developing their businesses.
We have been focusing on the EV eco-system in particular namely from the resource sector and charging technology systems. We see blue sky opportunities in the electric vehicle movement, and are looking for quality startups with hungry management teams looking to take a piece of this developing marketplace.