Corporate Finance Division
Automotive Venture Capital
The auto industry encompasses a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It is one of the world’s most important economic sectors by revenue. The automotive industry does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations. The term automotive was created from a Greek word auto (self) and Latin motivus (motion) to represent any form of self powered vehicle.
Auto tech investors have their foot on the gas as we move toward a world of connected cars. With tech giants and auto makers involved in a race to deploy self-driving cars, there’s renewed attention on auto tech. SJM Capital believes the development of the "Auto Tech" industry will be much like the development of "social media" and "cell phone technology" over the past decade.
Fostering Growth without Diluting Equity:
For Automotive companies at critical stages of development, debt can serve as a key financing option to foster growth, with minimal dilution of equity ownership. At Synergy Capital Markets, not only do we understand the industries of our portfolio Automotive companies, but we also understand the growth process - and occasionally the growing pains - they undergo.
When venture debt is used appropriately, we believe entrepreneurs gain the following benefits:
Able to raise capital in a way that benefits the team and the business as a result of the greater flexibility offered by venture debt than traditional forms of debt financing
Have more time between equity rounds to build the business and achieve critical milestones, which creates potential for greater valuation
Retain a larger ownership stake in the company prior to an IPO or other liquidity event
Achieving milestones quickly in many cases also means reaching the IPO stage more rapidly