1

Presented by:

Sarwant Singh

Senior Partner

STARTUPS DISRUPTING THE AUTOMOTIVE

INDUSTRY VALUE CHAIN

INTELLIGENT MOBILITYDigital Transformation of the Automotive Industry

2CONFIDENTIAL

Source: Frost & Sullivan

Why Start-ups? Reasons for InvestingInvestment in a successful start-up can yield up to 5x to 100 times the initial investment.

2.6x

20-30%

3-5

Years

• Early-stage start-ups experience compound

returns in the range of 40-50% against 20-

25% in stocks.

• Angel Investors got back an average

2.6x of its money in 5 years.

Quick ROI

Reduction in

R&D spend

Reduction in

Time-to-

Market

• Depending on the nature of the technology,

a reduction in R&D spends can be achieved

by investing/partnering with start-ups.

• Original equipment providers/telematics

service providers (OEMs/TSPs) can pick up

off-the-shelf technologies/products from

start-ups, which significantly reduces

product development time and the

time-to-market.

3CONFIDENTIAL

Over 1700 new startups are unbundling the Mobility Industry

Cybersecurity OTA (Over The Air Update) AI Software

Electric VehiclesV2V/V2X

HMI

Sensors Hardware

HD Mapping

Aftermarket Telematics

Driver Safety

Mobility Integration

Blockchain

UBI (Usage based Insurance)

P2P Used Car Market Place Autonomous Algorithm

Autonomous Solution

Autonomous Processing

Autonomous Sensors

VINI

LI

4CONFIDENTIAL

Snapshot of Major Automakers Investments in Start-upsMajority of the investments have taken place in the Mobility and Autonomous vehicles area

C- Connectivity M- Mobility P- Parking EV-Electric Vehicle A- Autonomous

(Electric Vehicle)(Electric)

(M) (Payment)

Going myway (P)

MAJOR

AUTOMAKER

INVESTMENT AND

M&A ACTIVITY

(C)

(M)

(M)

(C) (T)

(A) (M)

(T) (M)

(B) (S)

(A) (M)

(M) (E)

(M) (M)

(L) (M) (B

)(M) (M) (M)

(M)

(Solar Power)

(Battery)(Manufacturing)

(HAD)

(Sensor)

(M) (Mapping)

• (Software)

(M)

(Aftermarket)

(M)

(Com) (Energy)

(Aftermarket)

(M)

(EV

) (MaaS) (M)

(M)

(P) (M)

(Analytics)

(P)

(M)

(Analytics)

(M)

5CONFIDENTIAL

Startup Ecosystem in Israel: Start-up companies in Israel grew from 50 to more than 300 over the last few years

HMI CYBERSECURITY ALTERNATE FUELS SENSORS HARDWARE

MAPPING/PARKING DRIVER SAFETY ELECTRIC VEHICLES V2V/V2X

MOBILITY VEHICLE SAFETY ANALYTICS PLATFORM MOBILE APPS

Disclaimer*: These are a selective list of companies and by no means complete

6CONFIDENTIAL

Africa Following the Global Trend with Some Attractive Home Grown

Mobility Start-ups

Electric Vehicles & New OEMs

Cybersecurity

AI Software

Aftermarket Telematics

Driver Safety

Mobility Integration

Blockchain

UBI (Usage based Insurance)

P2P Used Car Market Place

7CONFIDENTIAL

Shortlisted Top 30 Start Ups by Frost & Sullivan

COMPANY FUNDING RECEIVED TECHNOLOGY DOMAIN

Innoviz $ 9 Million Sensor Hardware

ADASWorks $ 11 Million Artificial Intelligence Software

Kymeta $144 Million V2V/V2X communication

Gestigon € 6 Million Driver Safety

Maluuba $ 11 Million HMI

nuTonomy $ 19.6 Million Mobility(Driverless Taxi)

Geodigital $ 17.93 Million HAD Mapping

Lit Motors $ 2.2 Million Electric Vehicles

WAYRAY $ 10.6 Million Driver Safety- HUD

Movimento $ 9.6 Million OTA services

Rightware $ 5.2 Million HMI Software

Cloud Your Car $ 4.5 Million Aftermarket Telematics

Karamba

Security$ 5 Million Automotive Cybersecurity

Civil Maps $ 9.2 Million HAD Mapping

COMPANY FUNDING RECEIVED TECHNOLOGY DOMAIN

Zendrive $ 20 Million UBI

Fusionops $ 43.6 MillionArtificial Intelligence- Supply

Chain

Faxi $ 9 Million Mobility

Lynx $ 11 Million Invehicle Infotainment

Shift Mobility $ 2 Million Aftermarket

MaaS $ 2.46 Million Mobility

Autonative Not Available Aftermarket Digital Platform

Bolt Mobility € 1 Million Mobility

Ubeeqo € 4 Million Mobility

Oxbotica $ 2.2 Million Electric Vehicles

Smove $ 10.6 Million Mobility

Future Mobility $ 10.6 Million Mobility

VocalZoom $ 10.6 Million HMI

8CONFIDENTIAL

Living Labs OverviewOEMs have set up over 50 mobility living labs to bring open innovation

24

4

8

8

4

3

2

1

3

5

5

2

1

1

8

12

5

2

6

5

3

0

2

0 5 10 15 20 25 30 35

Ford

Toyota

BMW

VW

Daimler

GM

Nissan

Hyundai

Other OEMs

Hitachi

Bosch

Denso

Mitsubishi

Magna

Living Labs Set up by OEMs

Auto Tier-1{EV Drivetrain, EV (quick) charging, EV

taxis, energy management, HMI, logistics

and connected city, smart cities, electric

buses, renewable energy, amongst others}

0 1 2 3 4 5 6 7

Smart City

E-Mobility

Shared Mobility

Battery Research

Autonomous Driving

Map Data

Urban Mobility

Fuel Cell

Internet of Things

Battery Fabrication

Battery Second Life

Human Robot Collaboration

Big Data

Driver Behavior

New Materials

Public Transport

Hydrogen Ecosystem

Renewable Energy

Artificial Intelligence

Road Safety

Digitalization

ADAS

Connected Car

HVAC

Auto OEMs{Smart City, city driving on-demand, share-

car, carsharing, parking spotter, fleet

insights, data driven healthcare, mobility,

map data, smart city, retailing, e-mobility,

public transport, shared mobility, artificial

intelligence, electric shuttle, autonomous

vehicles, hydrogen transportation, road

safety, digitalization, clean energy, robotics,

IoT, amongst others}

Number of OEMs targeting respective themes

$ 50

K

$ 3M $ 5

M

$ 50

M

$ 15

0 M

>$

250

M

$ Investments into Living labs across different themes

Focus Themes for OEMs for Living Labs

9CONFIDENTIAL

Living Lab Business Model Options3 types of funding models preferred by OEMs

Model 1: OEM as Sole Sponsor/Owner

- Primary Investor

• Private investment by the OEM with full equity and oversight is retained by OEM.

• Revenue from concessions, product sales

• Focus on 1-2 technologies

• Led by small group of internal employees

Model 2: OEM is PARTNER

- Consortium Investment

• Involved partners provide up-front investment this model. Corporate returns based on individual/shared technologies, shared rental revenue.

• Focus on 3 or more technologies

• Led by unit or division of int. employees

Model 3: OEM is MEMBER

- Consortium Membership

• Private investment by the OEM is supported by the consortium membership and special project funding.

• Focus on full range of technologies

• Led by a newly formed board

e.g. of OEMs leading Living

Labs from the front include

BMW, Daimler, Nissan, Ford

e.g. of OEMs partnering with

2-20 partners in a Living Lab

includes GM, Jaguar, VW

e.g. of OEMs which are

members of possible

consortiums include GM,

Toyota, Ford

10CONFIDENTIAL

Frost & Sullivan Companies to Action Growth Partnership ProgrammePractical, high impact and value added solutions for Start ups

PARTNERSHIP

SOLUTIONS

– NON

EXHAUSTIVE

LIST

Intermediation Solution Through Financing Support/Capital Raising

Marketing Demand Generation and Brand Building Solutions

Access to Networking Platforms/ Opportunities

Continuous Provision of Leading Edge Industry Intelligence

Growth Strategy Development and Implementation Support

Frost & Sullivan’s Industry Leading Thought Leader or Senior Partner as

Advisory Board Member

11CONFIDENTIAL

Frost & Sullivan Companies to Action Growth Partnership ProgrammePractical, high impact and value added solutions for Corporates and Industry Stakeholders

PARTNERSHIP

SOLUTIONS

– NON

EXHAUSTIVE

LIST

Help set up (and even run) Innovation Start Up Accelerator programme. Living Lab

Screen & Identify promising start-ups for investment and sectors to invest in before valuations shoot up

Conduct Commercial Due Diligence (CDD/VDD) and support in valuation

Financial modelling; Enterprise valuation; Feasibility / Investment Opportunity analysis

Post-deal Support & Strategy, including monetisation of the asset

(including IPO strategy)

Frost & Sullivan’s Senior Partner support as non exec Board member to

guide management