Chinese VCs commit $50m to US driverless car start-up
Drive.ai, a US driverless car technology developer, has received a $50 million Series B round from a group of investors including China’s GGV Capital and Northern Light Venture Capital.
The round was led by US-based New Enterprise Associates (NEA), and extends a string of cross-border deals aimed at internationalizing China's high-end automotive space. It will result in three Asian additions to the Drive.ai board, including Carmen Chang, NEA's head of Asia; Andrew Ng, formerly chief scientist at Baidu; and Jenny Lee, GGV's managing partner.
"Self-driving transportation is one of the most exciting and important innovations of our time," Chang said in a statement. "To make self-driving a reality requires an understanding of technology, public policy, business and global society as a whole. Drive.ai deeply understands these requirements and has created a clear leadership position in the race to make self-driving a reality for the world."
Founded in 2015 by a team from Stanford University's Artificial Intelligence Lab, Drive.ai uses deep learning technologies to develop autonomous driving systems that can better adapt to different routes and traffic scenarios. The business aims to supply corporate fleets with retrofit kits that transform traditional cars into autonomous models.
Recent investment in China's smart car space includes a $1 billion capital raise for a driverless vehicle project by Leshi Internet Information and Technology - although the company, also known as LeEco, has since run into difficulty. Separately, earlier this year, Volkswagen's China unit agreed to invest $180 million investment in Mobvoi, a company focused on automotive artificial intelligence.
Chinese interest in overseas driving technology has been underpinned by regulatory pressures aiming to make electric vehicles (EV) represent about one-fifth of total car sales in China by 2025. Venture activity targeting this space otherwise includes a $400 million round for China and US-based EV supplier Microvast Power Systems and a $7.8 million investment in Efficient Drivetrains, a US auto components company currently expanding into China.
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