Fontinalis Partners Launches Third Mobility-Focused VC Fund

Fontinalis Partners Secures $104 Million for Third Fund

Fontinalis Partners, a Detroit-based venture capital firm established 12 years ago, has successfully raised $104 million in capital commitments for its latest fund. The firm is recognized as an early investor specifically focused on the mobility sector.

Key Investors and Limited Partners

Ford Motor Corp. is a significant investor in this vehicle, with executive chairman Bill Ford being a co-founder and active participant in fund management. Approximately 30 other limited partners also contributed, encompassing corporations from the automotive and insurance industries, as well as family offices.

A Broad Interpretation of Mobility

Fontinalis defines mobility broadly, encompassing any startup that facilitates “efficient movement.” This expansive view has led to investments across a diverse range of companies.

• The firm previously invested in Postmates, which was acquired by Uber in an all-stock transaction.
• Early investments were also made in Lyft.
• Fontinalis also provided funding to nuTonomy, a self-driving startup later acquired by Delphi Automotive in 2017 for $450 million.

Recent Investments

More recently, Fontinalis has allocated capital to several promising ventures.

• Gatik, developing autonomous vehicle technology for B2B short-haul logistics.
• Robust.AI, creating a cognitive platform for industrial robots.
• Helm.ai, specializing in artificial intelligence for driverless cars.
• FreightWaves, a data and content provider for the freight industry, offering near-real-time analytics.

Portfolio Performance and Exits

To date, the firm has invested in around 55 companies. A substantial 20 of these have already achieved successful exits.

These exits include Life360, the family tracking application that went public on the Australian Securities Exchange in 2019, and Ouster, a lidar sensor manufacturer that became publicly traded in the U.S. through a merger with a special purpose acquisition company (SPAC) in March.

Fund Size and Investment Strategy

The new fund’s size, approximately $100 million, is comparable to the firm’s second fund. Fontinalis has intentionally avoided dramatically increasing its fund size, unlike some other venture firms.

Co-founders Chris Cheever and Chris Stallman explain that their focus is on identifying the most promising opportunities within their investment mandate.

Leveraging Limited Partner Networks

After initial funding, Fontinalis facilitates further investment opportunities for its limited partners through co-investment options. Chris Stallman notes that many LPs have a strong interest in these co-investment opportunities, allowing for increased scalability.

Chris Cheever emphasizes the value of the network Fontinalis provides, connecting startups with potential customers and strategic partners.

Assets Under Management and Current Investments

Fontinalis currently manages $270 million in assets. The firm has already made five investments in Series A-stage or later companies from its newest fund.

Additionally, six seed-stage companies have received separate investments.

New and Follow-on Investments

Recent investments include an additive manufacturing company that has not yet publicly announced its funding round. A follow-on investment was also made in Highland Electric, a company assisting school districts in adopting electric buses by providing infrastructure upgrades, charging management, driver training, and financing solutions.