Fontinalis Partners Raises $104 Million for Third Fund, Expanding Focus on Mobility
A 12-year-old Detroit-based venture firm with a keen eye for mobility startups has collected $104 million in capital commitments for its third and newest fund.
Fontinalis Partners, the Detroit-based venture firm co-founded by Bill Ford, executive chairman of Ford Motor Corp., has successfully raised $104 million for its latest fund, marking a significant milestone for the 12-year-old firm. The investment is part of Fontinalis’ continued efforts to focus on mobility startups that are transforming the way people and goods move around.
A Wide Range of Bets
Fontinalis’ interpretation of mobility as encompassing any startup that enables efficient movement has led to a diverse range of investments. Some notable examples include its stake in Postmates, which was acquired by Uber last year in an all-stock deal. The firm also invested in Lyft and nuTonomy, a self-driving startup that sold to Delphi Automotive for $450 million in 2017.
Recent Investments
In addition to its established portfolio companies, Fontinalis has recently made investments in several new startups. These include Gatik, which is developing an autonomous vehicle stack for B2B short-haul logistics; Robust.AI, a startup working on an industrial-grade cognitive platform for robots; Helm.ai, a maker of driverless car AI; and FreightWaves, a data and content startup that provides near-time analytics to participants in the freight wave industry.
Assets Under Management
With the latest fund, Fontinalis now has $270 million in assets under management. The firm’s co-founders, Chris Cheever and Chris Stallman, emphasized their focus on finding the best deals within their mandate rather than seeking to maximize returns through increased investment. This approach is evident in the fact that Fontinalis could be investing more dollars but instead chooses to prioritize finding high-quality startups.
Co-Investment Opportunities
According to Cheever and Stallman, many of Fontinalis’ limited partners have a significant appetite for co-investment opportunities. This means that the firm can scale up its investments through these partnerships, creating more opportunities for startups to collaborate with leading companies in the industry.
Fontinalis’ Unique Approach
Fontinalis’ approach is centered around creating value not just through direct investment but also by providing access to a network of partners and customers. This unique strategy has led to significant returns for the firm’s limited partners, with 20 of its portfolio companies already seeing exits.
Exit Success Stories
Some notable exit success stories include Life360, a family tracking app that went public on the Australian Securities Exchange in 2019, and Ouster, a lidar sensor manufacturer that became publicly traded in March through a merger with a blank-check company. These results demonstrate Fontinalis’ ability to identify and support high-growth startups.
The Future of Mobility
As the mobility ecosystem continues to evolve, Fontinalis is well-positioned to capitalize on emerging trends. With its focus on enabling efficient movement and creating value through co-investment opportunities, the firm is poised for continued success in the years ahead.
Conclusion
Fontinalis Partners’ latest fund demonstrates the firm’s commitment to supporting innovative mobility startups. By prioritizing high-quality investments and co-investment opportunities, Fontinalis has established itself as a leader in the venture capital space.
Key Takeaways
- Fontinalis Partners has raised $104 million for its third fund.
- The firm has a focus on mobility startups that enable efficient movement.
- Fontinalis’ interpretation of mobility includes investments in self-driving, logistics, and data analytics.
- Co-investment opportunities are key to the firm’s strategy, with many limited partners seeking to collaborate with leading companies.
Recommended Reading
- "The Rise of Mobility Startups: Trends and Insights"
- "Fontinalis Partners: A Leader in Venture Capital for Mobility Startups"
- "Co-Investment Opportunities: A Key Driver of Value Creation in Venture Capital"
