As of the first quarter of 2021, the total amount of global venture investments was approximately $125 billion. This figure marked an increase of 50% quarter over quarter, according to data from Crunchbase. While venture capitalists have varied interests, the auto industry appeals to them most. And car manufacturers are taking advantage of this fact to access innovative technologies transforming the auto industry. 

Many venture capitalists want to ensure the investment they make aids propel change in the automotive sector. But how do entrepreneurs in the vehicle industry get funding? If you're looking to launch an automobile startup, understanding the financial side of business is key to landing investment deals. Read on to get insights into how you can get an automotive investment deal from venture capitalists.

Determine If This Is The Right Move To Fund Your Business

While you can easily attract a VC with a business idea only, in most cases, VCs close funding deals with businesses that meet various requirements. These standards include having a professional management team, a minimum viable product or MVP, and a ready market. Additionally, VCs are attracted to businesses designed to grow fast and have high startup costs. Understanding how venture capitalists choose investment options helps you decide if getting a deal from them is right for you. You'll also have a clear picture of steps to take to increase your chances of securing venture capital funding for your startup. 

Create A Strong Pitch Deck

The next step to obtaining venture capital funds is writing a pitch deck. Make sure your pitch shares insights about your business model, business funding needs, and your founding team. Most importantly, highlight the market pain points your business will solve. Remember, VCs are always looking to invest in products with a great competitive edge. Therefore, focus on developing products or services consumers can't do without.

For example, you might want to venture into catalytic converters for luxury cars. In this case, thoroughly research the market to learn more about cars with costly catalytic converters and why. Automobiles with expensive catalytic converters include the Lamborghini Aventador, Ferrari F430, and Ford F-250. The catalytic converter in the Ferrari F430, for instance, costs $7,540, while the converter in the Lamborghini Aventador costs $6,240. Once you have identified expensive catalytic converters, you could develop disruptive tech that enhances the effectiveness of catalytic converters to ensure consumers enjoy great value.

Search For Venture Capitalists Carefully

Note that all venture capital companies have specifications regarding the businesses they invest in. Some invest in renewable energy and software, while others focus on fintech and consumer products. So, invest a considerable amount of time finding the right automobile venture capitalist for your business. During your search for VCs, make sure to review portfolios of different investors and get clear insights into the commercial deals they offer. Doing so is key to identifying a suitable VC, thus shortening the time to reach partnerships and establishing long-term growth. 

Venture capital is one of the most sought-after financing options across all sectors, including the auto industry. Venture capitalists in the automobile industry provide funds that enable entrepreneurs to access the latest tech revolutionizing mobility. However, to benefit from automotive VC, you must determine if venture capital suits your business needs. You should also develop a disruptive business idea and find the right venture capitalist.