VC investment in mobility, still down from last year, appears to be leveling off

Both the number and value of venture capital deals in mobility technology is falling, though the downward slope appears to be leveling off, according to a PitchBook analysis.

The number of second-quarter VC deals in mobility tech dropped 1.7 percent from the previous three months to 234 deals. The values of those deals declined 11 percent to $4.2 billion.

The prior quarter had seen sharper decreases of 15 percent in the number of deals and a nearly 60 percent drop in the value of the deals.

Year over year, the number of deals in the second quarter declined by 33 percent, and the value of those deals declined 64 percent.

"VC activity in the mobility tech vertical leveled out" in the second quarter after "substantial" declines earlier in the year, the report said.

The analysis captures a key moment for the mobility industry. The cash influx of the pandemic boom times has slowed, but an anticipated recession has yet to materialize, and government interventions such as the Inflation Reduction Act have powered continued interest in the mobility sector.

The report highlighted electric vehicle charging challenges and the U.S.'s "accelerating efforts to catch up" with China and the European Union as an emerging opportunity for investors and companies to make money. The authors also noted Tesla's opening of its charging network to other brands as a factor driving venture capital investment.

PitchBook found that the EV segment saw the largest investment from venture capital firms, with $702.2 million in deals. Autonomous driving had the highest number of deals, at 35.

Jolt Energy, for example, raised $165.1 million to build a fast charging network in Europe and North America. Platform Science, which is collaborating with Paccar to integrate its virtual vehicle platform into Kenworth and Peterbilt trucks, raised $100 million.

Drako Motors, which is developing a 2,000-hp electric hypercar, raised $100 million as well, which may represent "a little zeal reemerging among VCs in the mobility tech vertical," the report said.