Woven Capital Invests in Autonomous Delivery Firm Nuro

Woven Capital, the venture capital division of Toyota’s Woven Planet, has made a strategic investment in Nuro, a Silicon Valley company specializing in autonomous delivery vehicles. This investment marks the launch of Woven Capital’s new $800 million fund, designed to support growth-stage technology firms with the potential to become future partners or acquisitions, as stated by George Kellerman, head of investments and acquisitions at Woven Capital.

Series C Funding and Investor Participation

Woven Capital participated in Nuro’s $500 million Series C funding round, which was finalized last November. Chipotle also contributed to this round, alongside funds managed by T. Rowe Price Associates, Inc. Additional investors included Fidelity Management & Research Company, LLC and Baillie Gifford. The precise investment amounts from each participant have not been publicly revealed.

Woven Capital’s Investment Focus

Toyota initially announced the $800 million investment initiative in September 2020. Woven Capital was formally established in January 2021, with a mandate to invest in key technologies. These include autonomous mobility, machine learning, artificial intelligence, automation, connectivity, and data analytics.

Strategic Partnership and Global Expansion

According to Kellerman, Nuro presented an ideal initial investment. The focus of Woven Planet is the development of autonomous passenger vehicles, and Nuro’s specialization in local goods delivery provides a valuable learning opportunity. He emphasized the potential for collaboration and the possibility of assisting Nuro in its global expansion.

Nuro’s Progress and Pandemic-Driven Growth

Nuro’s fleet of driverless cargo vehicles has already received approval from California’s Department of Motor Vehicles for testing on public roadways. They are currently delivering goods for companies such as Kroger, Domino’s, Walmart, and CVS. The increased demand for delivery services during the coronavirus pandemic has allowed Nuro to establish itself as a leader in the autonomous delivery sector, a position Woven Capital aims to bolster.

Statements from Nuro Leadership

Dave Ferguson, Nuro’s co-founder and president, expressed his enthusiasm for the partnership. He stated that Woven Capital’s team and objectives align with Nuro’s mission to improve lives through innovative mobility solutions. The new capital will be used to expand the team and further develop their autonomous delivery technology.

Woven City and the Future of Automation

Automation will be a central theme within Woven Capital’s investment portfolio, supporting the broader activities of Woven Planet. This includes the development of Woven City, a pioneering testing ground for future technologies within a fully interconnected smart city environment.

Groundbreaking at Woven City

Construction of Woven City commenced in February at the Higashi-Fuji site in Susono City, Japan, located at the base of Mount Fuji. This location will serve as a real-world laboratory for testing and refining advanced mobility and automation technologies.

The Importance of a Holistic Technology Stack

Kellerman explained that Woven City’s vision necessitates advancements in artificial intelligence, machine learning, data analytics, and connectivity. Therefore, Woven Capital will strategically invest in companies across these diverse technological areas.

A Shift Towards Software-First Mobility

A key trend in the mobility sector is a growing recognition that mobility encompasses not only the physical movement of people and goods, but also the flow of information and data. Woven Planet is adopting a “software-first” approach to automotive development. This involves prioritizing software design and then building hardware to support it, a departure from the traditional industry practice.

Flexibility and Scalability Through Software

A software-first architecture offers significant flexibility for future innovation. Changes to hardware won’t necessitate extensive code rewrites; new applications can be readily integrated. Kellerman emphasized the importance of developing software that is versatile and applicable across numerous applications.

The Value of Data Interchange

The evolving landscape of connected mobility highlights the importance of integrated software. Vehicles are becoming platforms for data collection and transmission, offering value beyond simply transporting goods from point A to point B. Information regarding traffic patterns and weather conditions, for example, can be relayed to the cloud, creating a valuable data stream.

Nuro’s Data and its Application to Woven City

Data collected by Nuro, particularly concerning street safety, could be directly beneficial to Woven City’s development. Nuro’s vehicles, designed without passenger compartments, prioritize the safety of pedestrians and other external actors. This aggregated data can inform human-centered city planning initiatives.

Long-Term Strategy and Potential Acquisitions

Kellerman indicated that Woven Capital’s overarching strategy involves identifying potential candidates for future mergers and acquisitions.

Toyota’s Approach to Acquisitions

While Toyota has not traditionally been an active acquirer, Woven Planet is establishing a dedicated corporate development team focused on accelerating its vision and mission through strategic acquisitions.