As we have previously shared, the Transportation Technology startup sector is seeing a lot of activity. How have its funding trends evolved over time? On our Transportation Technology research platform, we have analyzed the data through 2017 and can conclude that the investments in transportation tech are growing at a significant clip.
We have come to this conclusion from the following three takeaways:
We will illustrate these takeaways with a series of graphics to show the trend of transportation tech investments over time.
Let’s start off by examining the annual transportation tech funding amounts, stacked by quarters.
This graph illustrates that transportation tech funding saw explosive growth at the annual level. Specifically, the funding in 2017 was 193% of that in 2016. In addition, the CAGR in funding amounts from 2012 to 2017 is an astonishing 103%.
We have seen that transportation tech funding is showing strong growth, but what about the total number of deals?
The following graph shows us the annual number of transportation tech startup funding deals, stacked by quarters.
The above graphic illustrates that the number of transportation tech funding events increased steadily over the past few years. In fact, the CAGR in funding events from 2012 to 2017 is 18%. Moreover, the last 4 years have seen more than 300 funding events in each.
We have seen that transportation tech funding amounts skyrocketed and its funding events have shown overall steady growth. Let’s now analyze the investor interest in the sector to complete the picture on the state of transportation tech investments.
To gauge how investors are feeling, let’s look at the total number of transportation tech investors who participated in each financing round.
This graph shows that transportation tech investor interest has been on a general upward trend for the past few years. The CAGR in the number of participating investors from 2012-2017 is 25%, and the 2017 total has increased from the 2016 total by 20%.
In summary, the above graphics show that Transportation Technology funding amounts grew exponentially year over year. In addition, both its funding events and investor interest have been on a general upward trend as well. These takeaways lead us to conclude that transportation tech funding has experienced significant growth over time. The large growth in funding amounts paired with a steady count in funding events implies that the average deal size is growing. It’ll be interesting to see if this trend continues in 2018.
What are your thoughts on this? Let us know in the comments section below.