\Corporate Innovation Analysis/ Top automotive industry accelerators There has been an explosion of automobile company accelerators — since around 2017 almost every major carmaker runs some kind of startup programme. But programmes vary hugely in terms of what is on offer. By Kimberly Eynon 12 November 2019 \Fintech It’s not all over for incumbent banks — or their fintech friends By Kit Gillet in Bucharest 9 November 2020 \Corporate Innovation Analysis/ Top automotive industry accelerators There has been an explosion of automobile company accelerators — since around 2017 almost every major carmaker runs some kind of startup programme. But programmes vary hugely in terms of what is on offer. By Kimberly Eynon 12 November 2019 There has been an explosion of automobile company accelerators over the past few years. BMW’s Startup Garage and Daimler’s Startup Autobahn were some of the earliest on the scene, but since around 2017 almost every major carmaker has had some kind of startup programme. The duration of the programme can be anywhere from 10 weeks (Volvo iLabX) to a year (MobilityXlab). Some take equity, others don’t, but most don’t disclose what they do publicly, making it hard for startups to compare programmes. Jaguar Land Rover’s Studio 107 takes equity but the percentage depends on the venture. They have three models: a Studio 107 minority stake (similar to a venture capital model), joint ventures (where another corporate/ strategic investor comes in as well) and Jaguar Land Rover captive businesses, where they integrate the startup with the parent company and the management team is compensated rather than given equity. Advertisement BMW’s Startup Garage is an interesting “venture client” model — where the company takes no equity but becomes the first client for the company. Startup Autobahn has funded some of the most recognisable startups, including process management company Celonis and What3words, the mapping company. We’d love to know what model you think works best. If you are involved in one of these accelerator programmes please get in touch and tell us about your experience. Want insights about European corporate innovation in your inbox every Tuesday? Sign up for Future Proof here Honda Honda Xcelerator Founded: 2015 Location: Silicon Valley, China, Europe, Japan & Israel Duration: 3-6 months Model: The program offers funding for rapid prototyping and also gives startups a collaborative workspace, and pair each startup with Honda mentors. They do not accept startups in set batches which is also more convenient for some entrepreneurs participating. Funding: Undisclosed Equity: 0% Notable startups: Perceptive Automata Volkswagen Future Mobility Founded: 2017 Location: Dresden, Germany Duration: 6 months Model: The program is part of the new mobility strategy of Volkswagen group, 6 startups are chosen per class focused on mobility topics such as connected car, e-mobility/charging solutions, logistics and industry 4.0. Another interesting perk is that the state capital of Dresden, which supports the Incubator Program, pays for accommodation in Dresden for the duration of the program. Funding: €15,000 (~£13,000) Equity: 0% Notable startup: Embotech BMW Startup Garage Founded: 2015 Location: Munich, Germany Duration: 12 weeks Model: BMW uses a format they call ‘Venture Client’ – instead of investing in startups, BMW becomes their first client. Startups are chosen at an early stage of its product, service or technology. Funding: Startups are paid (revenue) Equity: 0% Notable startup: Aito Mercedes-Benz Startup Autobahn Founded: 2016 Location: Stuttgart, Germany Duration: 5 months Model: One of the earliest accelerators. The program is run by Plug n Play and act as a first meeting facilitator. The startups negotiate with the corporates for MVP funding. Funding: Yes but undisclosed Equity: 0% Notable startups: Dataiku, Celonis, What3Words Jaguar Land Rover Studio 107 Founded: 2018 Location: London, UK Duration: 6 months Model: Jaguar’s VC arm, InMotion, invests in companies at the early stage, pre-seed to Series B but if a company is little more than an idea it could be a candidate for Jaguar Land Rover’s incubator programme Studio 107. Funding: Undisclosed Equity: Yes but % undisclosed Notable startups: The OUT, Lenny, Carpe Volvo iLabX Founded: 2018 Location: Greensboro, North Carolina Duration: 10 weeks Model: The programs is run out of Volvo Financial Services and offers startups to trial a product as well as mentoring from senior Volvo executives. Funding: Undisclosed Equity: Undisclosed Notable startups: Launch Mobility, e-bot7, Encompass-CX, DOVU Scania Innovation Factory Founded: 2018 Location: Stockholm, Sweden Duration: 6 months Model: Scania’s Innovation Factory is an in-house program and aims to channel ideas of employees and to give employees hands-on experience in releasing a new product or service to the market. Funding SEK500,000 (~£40,500) Equity: Yes but undisclosed Mayer Cars (sponsored by Honda, Volvo, Hertz , NEC, Ituran & Aptiv) Drive Founded: 2017 Location: Tel Aviv, Israel Duration: 5 months Model: Eight startups in each cohort go through a curriculum of seminars on how to take their ideas to market in Israel and abroad. Funding: No funding Equity: Yes but undisclosed Notable startups: Autofleet, Waycare CEVT, Ericsson, Veoneer, Volvo Cars, Volvo Group and Zenuity MobilityXLab Founded: 2017 Location: Gotenburg, Sweden Duration:with 6-12 months Model: The program partner startups with venture firms, offers a collaborative space and let startup form part of a network of global startups and mentors. Funding: No funding Equity: 0% Notable startup: Aurora Labs Wayra Intelligent Mobility Founded: 2018 Location: London, UK Duration: 6 months Model: Led by Telefonica and spored by Hyundai Motor Company, Ferrovial and Stagecoach Group. The programme is also backed by the Connected Places Catapult, which is part of a UK-government-supported network of elite technology and innovation centres. The accelerator is the first British initiative to successfully bring together government, industry and startups to define the future of transport. Funding: up to £150,000 Equity: 0% Notable startups: Lifeshare, Cityswift, OpenCapacity, Tomorrow’s Journey Have we missed an accelerator programme? Please get in touch if there is an accelerator we need to add. This is a growing list. Advertisement Help Sifted get bigger and better (and get a sneak peak at our future plans). Please take our reader survey. Take the survey Terms of Use Related Articles The not-so-niche food delivery player to watch: HungryPanda raises $70m By Amy Lewin Click here to read more What SoftBank backing scooter operator Tier means for European micromobility By Amy Lewin Click here to read more Mobility in 2040 — smart cities and slow culture By Maija Palmer Click here to read more Omio raises $100m in Europe’s biggest travel round of 2020 By Amy Lewin Click here to read more Get the best of Sifted in your inbox By entering your email you agree to Sifted’s Terms of Use Sign up to \Future Proof Sifted’s weekly \Corporate Innovation roundup email By entering your email you agree to Sifted’s Terms of Use Most Read 1 \Fintech Pablo Escobar’s brother is suing Klarna for millions 2 \Startup Life Online events startup Hopin hits $2.1bn valuation just 8 months after launch 3 \Venture Capital Exclusive: See the pitch deck Seedcamp used to raise its latest £78m fund 4 \Fintech The “Fin-influencer” boom: Why Instagram and TikTok are the new battlegrounds for digital banks 5 \Venture Capital Sir Ronald Cohen: “The VC industry has to wake up” 3 Join the conversation Subscribe newest oldest most voted Notify of new follow-up comments new replies to my comments D MelkaPlug and Play runs mobility programs also Gregor GimmyNice overview- thanks! Note that the BMW Startup Garage is not an “accelerator”. See its FAQ “Is the BMW Startup Garage an accelerator? Nope. We are the Venture Client unit for early stage startups for the BMW Group. As a Venture Client, we take startups that graduated from accelerators. …” https://www.bmwstartupgarage.com/faq Maija PalmerThanks for the note. We made a note that the Startup Garage is not really an accelerator but decided to include it anyway as it is an “equivalent” option for startups.
The not-so-niche food delivery player to watch: HungryPanda raises $70m By Amy Lewin Click here to read more
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