Transportation
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Holoride, the company that’s building an immersive XR in-vehicle media platform, today announced it raised €10 million (approximately $12 million) in its Series A investing round, earning the company a €30 million ($36 million) valuation.
The Swedish ADAS software development company Terranet led the round with €3.2 million (~$3.9 million), followed by a group of Chinese financial and automotive technology investors, organized by investment professional Jingjing Xu, and educational and entertainment game development company Schell Games, which has partnered with holoride in the past to create content.
Holoride will use the fresh funds to search for new developers and other talent both as it prepares to expand into global markets like Europe, the United States and Asia, and in advance of its summer 2022 launch for private passenger cars.
“This goes hand-in-hand with putting more emphasis on the content creator community, and as of summer this year, releasing a lot of tools to help them build content for cars on our platform,” Nils Wollny, holoride’s CEO and founder, told TechCrunch.
The Munich-based company launched at CES in 2019. TechCrunch got to test out its in-car virtual reality system. Our team was surprised, and delighted, to find that holoride had figured out how to quell the motion sickness caused both by being a passenger in a vehicle, and by using a VR headset. The key? Matching the experience users have within the headset to the movement of the vehicle. Once holoride launches, users will be able to download the holoride app to their phones or other personal devices like VR headsets, which will connect wirelessly to the car itself, and extend their reality.
“Our technology has two sides,” said Wollny. “One is the localization, or positioning software, that takes data points from the car and performs real-time synchronization. The other part is what we call our Elastic Software Development Kit. Content creators can build elastic content, which adapts to your travel time and routes. The collaboration with Terranet means their sensors and software stack that allow for a more precise capture and interpretation of the environment at an even faster speed with higher accuracy will enable us in the future for even more possibilities.”
Terranet’s VoxelFlow
software, which was originally designed for ADAS applications, will help holoride advance its real-time, in-vehicle XR entertainment. Terranet’s CEO Par-Olof Johannesson, describes VoxelFlow
as a new paradigm within computer vision and object identification, wherein a combination of sensors, event cameras and a laser scanner are integrated into a car’s windshield and headlamps in order to calculate the distance, direction and speed of an object.
Terranet’s VoxelFlow
uses computer vision and object identification via a combination of sensors, event cameras and a laser scanner, which are integrated into a car’s windshield and headlamps, in order to calculate the distance, direction and speed of an object. Image Credits: Terranet
Holoride, which is manufacturer-agnostic, will be able to use the data points calculated by VoxelFlow
in real time if holoride were being used in a vehicle that was built integrated with Terranet’s software. But more important is the ability for holoride to reuse 3D event data for XR applications, giving it to creators so they can create the most interactive experience. Terranet is also looking forward to opening up a new vertical for VoxelFlow
.
“We are of course very eager to access holoride’s wide pipeline, as well,” said Johannesson. “This deal is very much about expanding the addressable market and tapping into the heart of the automotive industry, where lead times and turnaround times are usually pretty long.”
Holoride is on a mission to revolutionize the passenger experience by turning dead car time into interactive experiences that can run the gamut of gaming, education, productivity, mindfulness and more. For example, around Halloween 2019, holoride teamed up with Ford and Universal Pictures to immerse riders into the frightening world of the Bride of Frankenstein, replete with monsters jumping out and tasks for riders to perform.
Wollny said holoride always has an eye toward the next step, even though its first product hasn’t gone to market yet. He understands that the future is in autonomous vehicles, and wants to build an essential element of the future tech stack of future cars, cars in which everyone is a passenger.
“Car manufacturers always focus on the buyer of the car or the driver, but not so much on the passenger,” said Wollny. “The passenger is who holoride really focuses on. We want to turn every vehicle into a moving theme park.”
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French startup BlaBlaCar has raised a new $115 million funding round (€97 million). While the company is better known for its long distance carpooling marketplace, BlaBlaCar has also added a bus marketplace with the acquisition of Ouibus and an online bus ticketing platform with the acquisition of Busfor.
Existing investor VNV Global is leading the round. Two new investors are also participating — Otiva J/F AB and FMZ Ventures. Otiva J/F AB is a fund created by Avito founders Jonas Nordlander and Filip Engelbert. If you’re not familiar with Avito, they specialize in classified ads for the Russian market. Classified giant and global tech investor Naspers acquired Avito. As for FMZ Ventures, it’s a growth fund created by Michael Zeisser, who previously led investments for Alibaba and was a board member at Lyft and Tripadvisor.
It’s a convertible note, which means that the valuation will depend on the next financial event, such as another fundraising round or an initial public offering. But BlaBlaCar co-founder and CEO Nicolas Brusson consider it as a “pre-IPO convertible” round as BlaBlaCar still has a ton of cash on its bank account.
“We already had a lot of cash before this round and we still have more than €200 million in cash following this funding round,” Brusson told me.
Even if BlaBlaCar doesn’t go public right away (or doesn’t raise), there’s a clause with a time frame. After a while, those $115 million will convert into BlaBlaCar shares at a $2 billion valuation in case there’s no financial event.
BlaBlaCar’s strategy and goal with today’s funding round could be summed up with three pillars — carpooling, buses and aggregation.
Let’s start with carpooling, BlaBlaCar’s core business. The company started 15 years ago with a simple goal — matching empty car seats with passengers going in the same direction. While last year’s lockdown has impacted carpooling, it shouldn’t be compared with trains or flights.
“With our carpooling network, there’s no fixed costs,” Brusson said. So BlaBlaCar isn’t paying to put empty cars on the road as everything is community-powered. But, of course, as BlaBlaCar takes a cut from each transaction, revenue took a hit during last year’s lockdown.
Activity bounced back last summer and it’s been up and down ever since depending on current restrictions. “Car is and will be the universal connector that doesn’t rely on train stations or bus stops,” Brusson said.
The carpooling marketplace will always remain a strong revenue generator. In 2020 alone, BlaBlaCar had 50 million passengers across 22 markets overall. In other words, never bet against carpooling.
For the past few years, BlaBlaCar’s second pillar has been buses. In particular, buses represent a huge opportunity in emerging markets and Eastern Europe.
There are already a ton of buses on the road, you simply can’t buy tickets online. BlaBlaCar’s total addressable market in this category is huge and the company is mostly focused on moving offline supply to its online marketplace.
That’s why the company is also acquiring Octobus, a Ukrainian company working on an inventory management system for bus supply. “It consolidates our tech stack in the region,” Brusson said.
Finally, BlaBlaCar’s third pillar is all about creating loyal users that keep coming back to the platform. The company wants to build a multimodal app where you can find all shared travel — carpooling, buses and soon trains.
The startup will add train operators on its marketplace by the end of 2021 or early 2022. I asked Brusson whether he wanted to build an Omio competitor. Formerly known as GoEuro, Omio lets you book train tickets, bus tickets and flights on a single platform.
BlaBlaCar wants to follow a different strategy. It wants to focus first on a handful of countries so that it can sell everything a local would expect.
Eventually, you could imagine opening the BlaBlaCar app to find the best way to go from A to B. It could involve a train ticket followed by a carpooling ride to reach a tiny town. Or it could mix carpooling with bus rides. Thanks to BlaBlaCar’s reach, the French startup is uniquely positioned to connect two small cities through shared transportation.
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General Motors is joining the list of big automakers picking their horses in the race to develop better batteries for electric vehicles with its lead of a $139 million investment into the lithium-metal battery developer, SES.
Volkswagen has QuantumScape; Ford has invested in SolidPower (along with Hyundai and BMW); and now with SES’ big backing from General Motors, most of the big American and European automakers have placed their bets.
“We are beyond R&D development,” said SES chief executive Hu Qichao in an interview with TechCrunch. “The main purposes of this funding is to, one, improve the key material, this lithium metal electrolyte on the anode side and the cathode side, and, two, to improve the scale of the current cell from the iPhone battery size to the size that can be used in cars.”
There’s a third component to the financing as well, Hu said, which is to increase the company’s algorithmic capabilities to monitor and manage cell performance. “It’s something that we and our OEM partners care about,” said Hu.
The investment from GM is the culmination of nearly six years of work with the big automaker, said Hu. “We started working with them in 2015. For the next three years we will go through the standard automation approval processes. Going from ‘A’ sample to ‘B’ sample all the way through ‘D’ sample,” which is the final testing phase before commercial availability of SES’ batteries in cars.
While Tesla, the current leader in electric vehicle sales in America, is looking to improve the form factors of its batteries to make them more powerful and more efficient, Hu said that the chemistry isn’t that different. Solid state batteries represent a step change in battery technology that makes batteries more powerful, easier to recycle and potentially more stable.
As Mark Harris wrote in TechCrunch earlier this year:
There are many different kinds of SSB but they all lack a liquid electrolyte for moving electrons (electricity) between the battery’s positive (cathode) and negative (anode) electrodes. The liquid electrolytes in lithium-ion batteries limit the materials the electrodes can be made from, and the shape and size of the battery. Because liquid electrolytes are usually flammable, lithium-ion batteries are also prone to runaway heating and even explosion. SSBs are much less flammable and can use metal electrodes or complex internal designs to store more energy and move it faster — giving higher power and faster charging.
What SES is doing has brought the company attention not just from General Motors, but from previous investors, including the battery giant SK Innovation; the Singapore-based, government-backed investment firm, Temasek; the venture capital arm of semiconductor manufacturer, Applied Materials, Applied Ventures; the Chinese automaking giant, Shanghai Auto; and investment firm, Vertex.
“GM has been rapidly driving down battery cell costs and improving energy density, and our work with SES technology has incredible potential to deliver even better EV performance for customers who want more range at a lower cost,” said Matt Tsien, GM executive vice president and chief technology officer and president, GM Ventures. “This investment by GM and others will allow SES to accelerate their work and scale up their business.”
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Tesla owners can now see exactly what kind of energy is powering their electric vehicles. TezLab, a free app that’s like a Fitbit for a Tesla vehicle, pushed out a new feature this week that shows the energy mix — breaking down the exact types and percentages of fossil fuels and renewable energy — coming from charging locations, including Superchargers and third-party networks throughout the United States.
“We’re tracking the origin of data as it relates to energy, so we know if you’re in Tucson or Brooklyn (or any location) where the energy is coming from and what the mix of that energy looks like,” Ben Schippers, the CEO and co-founder of TezLab explained in a recent interview. “As a result, we can see how much carbon is being pushed out into the atmosphere based on your charge, whether you’re charging at home, or whether you’re charging at a Supercharger.”
ElectricityMap, a project from Tomorrow, provided the energy data, which TezLab then folded into its consumer-facing app. Once downloaded, the app knows when and where a Tesla owner is plugging in. The energy mix feature builds off of an existing program on the app that gave owners more general information on how dirty or clean their charge is.
Take Tesla’s Linq High Roller Supercharger in Las Vegas, a V3 Supercharger that is supposed to support a peak rate of up to 250 kilowatts and has been heralded for its use of Tesla solar panels and its Powerpack batteries to generate and store the power needed to operate the chargers.
According to TezLab’s data, 1.7% of the energy is from solar. The primary source of renewable energy is actually hydro at 65.6% — courtesy of the Hoover Dam. The remaining energy mix from the Supercharger is about 33% natural gas.
Tesla’s Supercharger in Hawthorne, California, which was one of the first to have solar panels, has an energy mix of 0.2% solar, 5.5% nuclear,13.3% natural gas, 27% coal and 49.9% wind.
The top 10 “cleanest” Superchargers — a list that includes Centralia, Leavenworth, Moses Lake and Seattle, Washington — achieved that goal thanks to hydroelectric power. Superchargers with the most solar energy are all located in the same power grid in California. Superchargers in Barstow, Oxnard, Cabazon, San Diego, Mojave, Inyokern, San Mateo, Seaside and Santa Ana, California all have 22.7% solar and 15% wind energy. The remaining mix at these locations is 0.2% battery storage, 2.9% biomass, 5.6% geothermal, 6.3% hydro, 6.6% nuclear and 40% natural gas.
TezLab was born out of HappyFunCorp, a software engineering shop that builds apps for mobile, web, wearables and Internet of Things devices for clients that include Amazon, Facebook and Twitter, as well as an array of startups. HFC’s engineers, including co-founders Schippers (who is now chairman of the company’s board) and William Schenk, were attracted to Tesla largely because of its software-driven approach. The group was particularly intrigued at the opportunity created by the openness of the Tesla API. The Tesla API is technically private. But the endpoints are accessible to outsiders. When reverse-engineered, it’s possible for a third-party app to communicate directly with the API.
TezLab launched in 2018 with some initial features that let owners track their efficiency, total trip miles and use it to control certain functions of the vehicle, such as locking and unlocking the doors and heating and air conditioning. More features have been added, mostly focused on building community, including one that allows Tesla owners to rate Supercharger stations.
All of that data is aggregated and anonymous. TezLab has said it won’t sell that data. It does post on its website insights gleaned from that data, such as a breakdown of model ownership, the average trip length and average time between plugging in.
As other electric vehicles come to market, TezLab is adding those to the app, including the Ford Mustang Mach-E.
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The safety pilot has his hands off the controls during an Xwing demonstration flight. Image Credits: Xwing
Xwing has scored another win two months after it completed its first gate-to-gate autonomous demonstration flight of a commercial cargo aircraft. The company said Thursday it has raised $40 million at a post-money valuation of $400 million.
The company is setting its sights on expansion — not only tripling its engineering team, but eventually running regular fully unmanned commercial cargo flights.
Xwing has been developing a technology stack to convert aircraft, including a widely used Cessna Grand Caravan 208B, to function autonomously. But it’s had to solve a few problems first: “the perception problem, the planning problem and the control problem,” Xwing founder Marc Piette explained to TechCrunch. The company has come up with a whole suite of solutions to solve for these problems, including integrating lidar, radar and cameras on the plane; retrofitting the servomotors that control the rudder, braking and other functions; and ensuring all of these are communicating properly so the plane understands where it is in space and can execute its flight.
The company has already performed close to 200 missions with its AutoFlight system. For all these flights, there’s been a safety pilot on board. In addition, a ground control operator sits in a control center and acts as a go-between from the autonomous aircraft to the human air traffic control operator.
“We don’t anticipate automating [communication with air traffic control], trying to do natural language processing and having a computer make the response to the air traffic controller,” Piette said. “For safety critical applications, we don’t view that as a useful path…but what we do, though, is we have a ground operator in our control room that just talks to air traffic control on behalf of the aircraft. So for the air traffic controller, it’s seamless. As far as they’re concerned, they are just talking to a pilot onboard the aircraft.”
Image Credits: Xwing
For its autonomous flight activities, the company has authorization from the Federal Aviation Administration to fly under an experimental airworthiness certificate for research and development that was expanded in August of last year to include a special flight permit for optionally piloted aircraft (OPA).
The company is looking to eventually remove the safety pilot, but only once full safety redundancies are in place, Piette added. That includes redundancies across all sensors and computer systems. Fortunately for all of us that fly, commercial aviation safety levels are extremely high. It means a high airworthiness standard for aviation startups. Smaller Class III aircraft like the ones Xwing is targeting must demonstrate a risk of one catastrophic failure per hundred million flight hours.
Xwing’s activities have garnered attention from investors. This most recent funding round was led by Blackhorn Ventures, with participation from ACME Capital, Loup Ventures, R7 Partners, Eniac Ventures, Alven Capital and Array Ventures. Including this round, the company has raised $55 million in total capital.
The autonomous flights are only one part of Xwing’s business activities. It’s also been flying manned commercial cargo operations under a contract with a large logistics company signed December 1.
“We set up what’s effectively an airline,” Piette said. By modifying these aircraft with sensors to collect data, Xwing is able to feed this valuable flight time into a training algorithm, and collect other useful data, such as how often the pilots communicate with air traffic controllers and the types of directions the craft receives.
Looking ahead, the company will be significantly scaling its workforce over the next 12 months, in addition to increasing its commercial operations in parallel. On the technology side, Xwing is looking to fly autonomous commercial cargo flights, with a safety pilot onboard, under an experimental ticket and exemption from the FAA. The company will likely reach this milestone also within the next 12 months, Piette said. After that, it would look to remove the safety pilot from the aircraft. Even then, the company would still need to get its systems certified to completely remove any constraints on its movements in airspace.
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When ZeroAvia’s six-seater aircraft completed an eight-minute flight from Cranfield Airfield in the U.K. last September, the company claimed a “major breakthrough” with the first-ever hydrogen fuel cell flight of a commercial-size aircraft.
The modified Piper Malibu propeller plane was now the largest hydrogen-powered aircraft in the world, wrote the company. “While some experimental aircraft have flown using hydrogen fuel cells, the size of this aircraft shows that paying passengers could be boarding a truly zero-emission flight very soon,” added Val Miftakhov, ZeroAvia’s CEO.
But just how hydrogen-powered was it, and how close is ZeroAvia to flying passengers?
“[In] this particular setup, not all the energy is coming from hydrogen,” said Miftakhov at a press conference directly afterwards. “There is a combination of the battery and hydrogen. But the way the battery and hydrogen fuel cells combine is such that we are able to fly purely on hydrogen.”
Miftakhov’s comments don’t quite tell the whole story. TechCrunch has learned that batteries provided the majority of the power required for the landmark flight, and will continue to feature heavily in ZeroAvia’s longer flights and new aircraft. And while the Malibu is technically still a passenger aircraft, ZeroAvia has had to replace four of the Malibu’s five passenger seats to accommodate bulky hydrogen tanks and other equipment.
In less than four years, ZeroAvia has gone from testing aircraft parts in pickup trucks to gaining the support of the U.K. government, and attracting investment from the likes of Jeff Bezos, Bill Gates and — just last week — British Airways. Now the question is whether it can continue on its claimed trajectory and truly transform aviation.
Aviation currently accounts for 2.5% of humanity’s carbon emissions, and could grow to a quarter of the planet’s carbon budget by 2050. Biofuels can displace trees or food crops, while batteries are too heavy for anything more than short hops. Hydrogen, by contrast, can be generated using solar or wind power, and packs quite an energetic punch.
Fuel cells combine hydrogen with oxygen from the air in an efficient reaction that produces only electricity, heat and water. But that doesn’t mean you can simply drop a fuel cell into an existing aircraft. Fuel cells are heavy and complex, hydrogen requires bulky storage and there are many technical problems for startups to solve.
Russian-born Miftakhov arrived in America in 1997 to study for a physics doctorate. In 2012, after starting several companies and a stint at Google, he founded eMotorWerks (aka EMW) to produce electric conversion kits for the BMW 3-series.
But in 2013, BMW accused EMW of infringing its trademarks. Miftakhov agreed to change its logo and marketing materials, and to refrain from suggesting it was affiliated with the carmaker. He also found demand from BMW owners to be sluggish.
EMW then pivoted to providing chargers and a smart energy management platform. The new direction succeeded, and in 2017 Italian energy company Enel acquired EMW for a reported $150 million. But Miftakhov faced legal difficulties here, too.
George Betak, an EMW vice president, filed two civil lawsuits against Miftakhov alleging, among other things, that Miftakhov had left his name off patents, withheld money and even faked a document to make it seem as though Betak had assigned his intellectual property rights to EMW. Betak later withdrew some claims. The cases were quietly settled in the summer of 2020.
Weeks after selling EMW in 2017, Miftakhov incorporated ZeroAvia in San Carlos, California with the stated aim of “zero emissions aviation.” He was counting on the aviation industry being more interested in electrifying existing aircraft than BMW drivers had been.
The first public outing for ZeroAvia was in October 2018 at Hollister Airport, 50 miles southwest of San Jose. Miftakhov mounted a propeller, an electric motor and batteries in the bed of a 1969 El Camino and took it up to 75 knots (85mph) on electric power.
In December, ZeroAvia bought a Piper PA-46 Matrix, a six-seater propeller plane very similar to the one it would later use in the U.K. Miftakhov’s team installed the motor and about 75kWh of lithium ion batteries — about the same as in an entry-level Tesla Model Y.
In February 2019, two days after the FAA granted it an experimental airworthiness certificate, the all-electric Piper took to the air. By mid-April, the Matrix was flying at its top speed and maximum power. It was ready to upgrade to hydrogen.
Import records show that ZeroAvia took delivery of a carbon fiber hydrogen tank from Germany in March. One company photo exists of the Matrix with a tank on its left wing, but ZeroAvia never released a video of it flying. Something had gone wrong.
In July, ZeroAvia’s R&D director posted a message on a forum for Piper owners: “We have damaged a wing of our Matrix, which we loved and pampered so much. The damage is so bad that it has to be replaced. Is anyone aware of [a suitable aircraft] that is going to be sold for parts any time soon?”
Miftakhov confirmed that the damage, not previously reported, occurred while ZeroAvia was reconfiguring the aircraft. That aircraft has not flown since, and ZeroAvia’s time as a Silicon Valley startup was coming to an end.
With ZeroAvia’s U.S. flight tests on hold, Miftakhov turned his attention to Britain, where Prime Minister Boris Johnson is banking on ”a new green industrial revolution.”
In September 2019, Aerospace Technology Institute (ATI), a U.K. government-supported company, funded a ZeroAvia-led project called HyFlyer, with £2.68 million ($3.3 million). Miftakhov committed to deliver a hydrogen fuel cell Piper that could fly more than 280 miles, within a year. Sharing the money would be Intelligent Energy, a fuel cell maker, and the European Marine Energy Centre (EMEC), which would provide hydrogen fueling tech.
“ZeroAvia had proved the concept of retrofitting an electric power train into an aircraft and instead of powering it by batteries, they wanted to power it with hydrogen,” said Richard Ainsworth, EMEC’s hydrogen manager at the time. “That was the whole purpose of the HyFlyer project.”
Gary Elliott, CEO of ATI, told TechCrunch that it was “really important” to ATI that ZeroAvia was using fuel cells rather than a battery system: “You need to spread your investment profile, so that you’ve got as much likelihood of success as you can.”
ZeroAvia set up in Cranfield and in February 2020, bought a six-seater Piper Malibu, similar to the damaged Matrix. Although the company fitted and flew it with batteries by June, the government still needed reassuring. “I’d be happy to catch up and think about what we can do to address the concerns that are nagging away at the ATI,” wrote an official, according to an email obtained by TechCrunch under a freedom of information request.
Intelligent Energy CTO Chris Dudfield told TechCrunch that the HyFlyer program went smoothly, but that his company is still years away from flying a larger fuel cell and that he never even saw ZeroAvia’s plane.
ZeroAvia’s partnership with Intelligent Energy might have helped it secure U.K. government funding but it wasn’t going to help power the Malibu. ZeroAvia needed to find a fuel cell supplier — fast.
In August, ZeroAvia wrote to government officials that “we are now gearing up for our first hydrogen-powered flight,” and invited the Secretary of State to attend.
Miftakhov said that ZeroAvia’s demonstration flight used a 250 kilowatt hydrogen fuel cell powertrain — the largest ever in an aircraft. This is comparable in power to the internal combustion engine that Pipers typically use, giving a healthy margin of safety for the most demanding phase of flight: take off.
ZeroAvia never identified its fuel cell supplier, nor detailed how much of the 250kW came from the fuel cell.
However, the day after the demonstration flight, a Swedish company called PowerCell issued a press release stating that one PowerCell MS-100 fuel cell was “an integral part of the powertrain.”
The MS-100 generates a maximum power of just 100kW, leaving 150kW unaccounted for. This means the majority of the power needed for take-off could only have come from the Piper’s batteries.
In an interview with TechCrunch, Miftakhov acknowledged that the Piper could not have taken off on fuel cell power alone in the September flight. He said the plane’s batteries were probably operational for the entire demonstration flight, and provided “some additional safety margin for the aircraft.”
Many fuel cell vehicles use batteries, either to smooth out fluctuations or to boost power briefly, although some manufacturers have been more transparent about their sources of power. One problem with relying on batteries for take off is that the plane then has to carry them for the whole flight.
“The fundamental challenge for hydrogen fuel cell aircraft is weight,” said Paul Eremenko, CEO of Universal Hydrogen, which is collaborating on a 2000kW fuel cell powertrain for another aircraft. “One of the ways we save weight is having a much smaller battery that is only used when a pilot guns the throttle.”
In February, ZeroAvia’s vice president, Sergey Kiselev, said that the company’s goal was to do without batteries altogether. “Batteries may be used to provide an extra oomph during take off,” he told the Royal Aeronautical Society. “But if you use different types of propulsion or energy storage on the aircraft, the certification effort will be significantly harder.”
Relying heavily on batteries allowed ZeroAvia to pull off its high-profile demonstration flight for investors and the U.K. government, but could ultimately delay its first flights with paying passengers.
Without an exhaust to expel waste heat, fuel cells usually need a complex air or liquid cooling system to avoid overheating
“This is really the key intellectual property, and why it isn’t just a matter of buying a fuel cell, buying a motor and plugging them together,” says Eremenko.
The German Aerospace Center in Cologne has been flying hydrogen fuel cell aircraft since 2012. Its current aircraft, the custom-designed HY4, can carry four passengers up to 450 miles. Its 65kW fuel cell has a liquid cooling system that uses a large, aerodynamically optimized channel for the cooling air flow (see picture).
A similar 100kW system would generally need a cooling intake longer and a third bigger than the HY4’s. ZeroAvia’s Piper Malibu has no additional cooling intakes at all.
“The openings look way too small for the air speed at take off, and even for cruise speed,” said an aviation fuel cell engineer who asked not to be named because they deal with some of the same companies as ZeroAvia.
“We had to experiment with the location and configuration of the heat exchangers… but we did not have to redesign the shape of the aircraft to handle the heat,” countered Miftakhov. He claims the fuel cell was operating at between 85 and 100kW during the flight.
Following TechCrunch’s interview with ZeroAvia, the company released a video that appears to show the Piper’s fuel cell operating at up to 70kW during a ground test, which could equate to a higher power level when airborne.
Although this still needs to be demonstrated with long-distance flights, ZeroAvia may have solved the heat problem that has dogged other engineers for years.
In September, aviation minister Robert Courts was at Cranfield to watch the demonstration flight. “It’s one of the most historic moments in aviation for decades, and it is a huge triumph for ZeroAvia,” he said after the flight. Time magazine named ZeroAvia’s technology as one of the best inventions of 2020.
Even with the HyFlyer extended flight still to come, in December the U.K. government announced HyFlyer 2 — a £12.3 million ($16.3 million) project for ZeroAvia to deliver a 600kW hydrogen-electric powertrain for a larger aircraft. ZeroAvia agreed to have a 19-seat plane ready for commercialization in 2023. (It now says 2024.)
On the same day, ZeroAvia announced its $21.3 million Series A investor lineup, including Bill Gates’ Breakthrough Ventures Fund, Jeff Bezos’ Amazon Climate Pledge Fund, Ecosystem Integrity Fund, Horizon Ventures, Shell Ventures and Summa Equity. It announced another $23.4 million raise from these investors, without Amazon but with British Airways, in late March.
Miftakhov said the Malibu has now completed about a dozen test flights, with the long-distance U.K. flight pushed to later this year, due to COVID delays. And as for HyFlyer 2, Miftakhov now says that this will initially use half batteries and half fuel cells, although “the final certifiable flight configuration will get its full 600kW from the fuel cells.”
There is no doubt that ZeroAvia is facing a steep climb to deliver its promised aircraft, starting with the 19-seater, then a 50-seater plane in 2026, and a 100-seater by 2030.
Hydrogen fuel cells still have a whiff of snake oil about them, thanks to Nikola, a startup that exaggerated a public demonstration of a hydrogen fuel cell truck, triggering a collapse in its share price and investigation by the SEC. The best option for ambitious start-ups like ZeroAvia is to be more transparent about their current technology and the challenges that lie ahead, even if that means tempering the expectations of investors and a public excited by the prospect of sustainable air travel.
“I desperately want ZeroAvia to be successful,” says Paul Eremenko. “I think we have very complementary business models and together we help complete the value chain to make hydrogen aviation happen.”
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As expected, Southeast Asian superapp Grab is going public via a SPAC.
The combination, which TechCrunch discussed over the weekend, will value Grab on an equity basis at $39.6 billion and will provide around $4.5 billion in cash, $4 billion of which will come in the form of a private investment in public equity, or PIPE. Altimeter Capital is putting up $750 million in the PIPE — fitting, as Grab is merging with one of Altimeter’s SPACs.
Ride-sharing is a profitable business for Grab, though the segment did take a pandemic-induced whacking.
Grab, which provides ride-hailing, payments and food delivery, will trade under the ticker symbol “GRAB” on Nasdaq when the deal closes. The announcement comes a day after Uber told its investors it was seeing recovery in certain transactions, including ride-hailing and delivery.
Uber also told the investing public that it’s still on track to reach adjusted EBITDA profitability in Q4 2021. The American ride-hailing giant did a surprising amount of work clearing brush for the Grab deal. Extra Crunch examined Uber’s ramp toward profitability yesterday.
This morning, let’s talk through several key points from Grab’s SPAC investor deck. We’ll discuss growth, segment profitability, aggregate costs and COVID-19, among other factors. You can read along in the presentation here.
The impact on Grab’s operations from COVID-19 resembles what happened to Uber in that the company’s deliveries business had a stellar 2020, while its ride-hailing business did not.
From a high level, Grab’s gross merchandise volume (GMV) was essentially flat from 2019 to 2020, rising from $12.2 billion to $12.5 billion. However, the company did manage to greatly boost its adjusted net revenue over the same period, which rose from $1 billion to $1.6 billion.
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Mobility mavens, June 9 will be here before you know it, and that means it’s time to get your strategy ducks in a row for TC Sessions: Mobility 2021. You want to make the most of your time at this one-day virtual event featuring interactive presentations with the mobility industry’s top movers, shakers and startup dream makers, amirite?
Take your team to increase your ROI. Right now, you can grab a group discount — at the early-bird price — when you buy a block of four or more tickets to TC Sessions: Mobility. Don’t procrastinate. At $70 per pass, you’ll save a couple hundred bucks — but only if you make your purchase by May 5, at 11:59 pm (PT).
Like the old expression says, if you want to go fast, go alone. If you want to go far, go together. You’ll cover more ground and discover more opportunities with your whole team at your side.
TC Sessions: Mobility 2021 will feature an incredible lineup of speakers, presentations, fireside chats and breakouts all focused on the current and future state of mobility — like EVs, micromobility and smart cities for starters — and the investment trends that influence them all.
Investors like Clara Brenner (Urban Innovation Fund), Quin Garcia (Autotech Ventures) and Rachel Holt (Construct Capital) — all of whom will grace our virtual stage. They’ll have plenty of insight and advice to share, including the challenges that startup founders will face as they break into the transportation arena.
You’ll hear from CEOs like Starship Technologies’ Ahti Heinla. The company’s been busy testing delivery robots in real-world markets. Don’t miss his discussion touching on challenges ranging from technology to red tape and what it might take to make last-mile robotic delivery a mainstream reality.
Taking your team also makes you a highly efficient networking unit. Find ad hoc opportunities in the virtual platform’s chat feature or use CrunchMatch, our AI-powered platform, to zero in on the people best aligned with your business goals. Schedule virtual product demos, pitch investors or recruit new talent.
Here’s what Rachael Wilcox, a creative producer at Volvo Cars, told us about her networking experience at TC Sessions: Mobility 2020:
I didn’t think I’d network on a virtual platform but, it turns out, it’s a lot easier to network with more people. Folks just felt more comfortable reaching out. I had conversations with people I probably wouldn’t have met otherwise, and that was an unexpected benefit.
TC Sessions: Mobility 2021 takes place on June 9, but if you want to take your team — and save 25% in the process — it’s now o’clock. Buy your group discount passes before the early-bird price disappears on May 5 at 11:59 pm (PT). Grab your cohort and go!
Is your company interested in sponsoring or exhibiting at TC Sessions: Mobility 2021? Contact our sponsorship sales team by filling out this form.
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Equipment at Battery Resourcers’ new cathode sintering and analysis facility in Novi, Michigan. (Photo: Battery Resourcers)
As a greater share of the transportation market becomes electrified, companies have started to grapple with how to dispose of the thousands of tons of used electric vehicle batteries that are expected to come off the roads by the end of the decade.
Battery Resourcers proposes a seemingly simple solution: recycle them. But the company doesn’t stop there. It’s engineered a “closed loop” process to turn that recycled material into nickel-manganese-cobalt cathodes to sell back to battery manufacturers. It is also developing a process to recover and purify graphite, a material used in anodes, to battery-grade.
Battery Resourcers’ business model has attracted another round of investor attention, this time with a $20 million Series B equity round led by Orbia Ventures, with injections from At One Ventures, TDK Ventures, TRUMPF Venture, Doral Energy-Tech Ventures and InMotion Ventures. Battery Resourcers CEO Mike O’Kronley declined to disclose the company’s new valuation.
The cathode and anode, along with the electrolyzer, are major components of battery architecture, and O’Kronley told TechCrunch it is this recycling-plus-manufacturing process that distinguishes the company from other recyclers.
“When we say that we’re on the verge of revolutionizing this industry, what we are doing is we are making the cathode active material — we’re not just recovering the metals that are in the battery, which a lot of other recyclers are doing,” he said. “We’re recovering those materials, and formulating brand new cathode active material, and also recovering and purifying the graphite active material. So those two active materials will be sold to a battery manufacturer and go right back into the new battery.”
“Other recycling companies, they’re focused on recovering just the metals that are in [batteries]: there’s copper, there’s aluminum, there’s nickel, there’s cobalt. They’re focused on recovering those metals and selling them back as commodities into whatever industry needs those metals,” he added. “And they may or may not go back into a battery.”
The company says its approach could reduce the battery industry’s reliance on mined metals — a reliance that’s only anticipated to grow in the coming decades. A study published last December found that demand for cobalt could increase by a factor of 17 and nickel by a factor of 28, depending on the size of EV uptake and advances in battery chemistries.
Thus far, the company’s been operating a demonstration-scale facility in Worcester, Massachusetts, and has expanded into a facility in Novi, Michigan, where it does analytical testing and material characterization. Between the two sites, the company can make around 15 tons of cathode materials a year. This latest funding round will help facilitate the development of a commercial-scale facility, which Battery Resourcers said in a statement will boost its capacity to process 10,000 tons of batteries per year, or batteries from around 20,000 EVs.
Another major piece of its proprietary recycling process is the ability to take in both old and new EV batteries, process them and formulate the newest kind of cathodes used in today’s batteries. “So they can take in 10-year-old batteries from a Chevy Volt and reformulate the metals to make the high-Ni cathode active materials in use today,” a company spokesman explained to TechCrunch.
Battery Resourcers is already receiving inquiries from automakers and consumer electronics companies, O’Kronley said, though he did not provide additional details. But InMotion Ventures, the venture capital arm of Jaguar Land Rover, said in a statement its participation in the round as a “significant investment.”
“[Battery Resourcers’] proprietary end-to-end recycling process supports Jaguar Land Rover’s journey to become a net zero carbon business by 2039,” InMotion managing director Sebastian Peck said.
Battery Resourcers was founded in 2015 after being spun out from Massachusetts’ Worcester Polytechnic Institute. The company has previously received support from the National Science Foundation and the U.S. Advanced Battery Consortium, a collaboration between General Motors, Ford Motor Company and Fiat Chrysler Automobiles.
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Kavak, the Mexican startup that’s disrupted the used car market in Mexico and Argentina, today announced its Series D of $485 million, which now values the company at $4 billion. This round more than triples their previous valuation of $1.15 billion, which established them as a unicorn just a couple of months ago in October of 2020. Kavak is now one of the top five highest-valued startups in Latin America.
The round was led by D1 Capital Partners, Founders Fund, Ribbit and BOND, and brings Kavak’s total capital raised to date to more than $900 million. Kavak recently soft-launched in Brazil, and this new round of funding will be used to build out the Brazilian market and beyond, said Carlos García Ottati, Kavak’s CEO and co-founder. The company plans to do a full launch in Brazil in the next 60 days, García said, and we can expect to see Kavak in markets outside Latin America in the next 24 months, he added.
“We were built to solve emerging market problems,” García said.
Kavak, which was founded in 2016, is an online marketplace that aims to bring transparency, security and access to financing to the used car market. The company also offers its own financing through its fintech arm, Kavak Capital, and counts more than 2,500 employees and 20 logistics and reconditioning hubs in Mexico and Argentina.
“In Latin America, 90% of the [used car] transactions are informal, which leads to a 40% fraud rate,” said García, who experienced these challenges firsthand when he moved to Mexico from Colombia a couple of years ago and bought a used car.
“My budget allowed me to buy a used car, but there was no infrastructure around it. It took me six months to buy the car, and then the car had legal and mechanical issues and I lost most of my money,” he said. Kavak buys cars from individuals, refurbishes them and offers warranties to buyers.
“Instead of buying a new car, they can buy a better car that still has all the warranties. It’s a really aspirational process,” said García. The company, which really amounts to four companies in one given its areas of focus, was built to be comprehensive by design in order to meet the various gaps in the market, García said.
“When you’re building a business here [Latin America], you need to build several businesses because so many things are broken,” he said. That’s why the financing option, for example, has been a key to their success, according to García.
Financing has traditionally been hard to come by in Brazil, and as García said, the used car market lacks infrastructure there, too. That being said, Brazil is Latin America’s fintech hub, and the space has made leaps and bounds over the last 7-10 years with companies such as Nubank, PagSeguro, Creditas, PicPay, and others leading the way. As a result, credit cards and loans are more widely available today in the region, offering competition for Kavak Capital. While Kavak has localized some of its product for the Brazilian market — namely building out a Portuguese language version of the app and website — García said the markets are very similar.
“In Brazil, you still have the same problems that you have in Mexico, but Brazil is a little more developed, especially in fintech, which is light years ahead of Mexico,” he said.
With the Brazilian product heading to the races, García said they already have plans for other regions, though he declined to name them.
“80% of people in emerging markets don’t have access to a car,” García said of the global market size. “We want to go into big markets where customers are facing similar problems and where Kavak can really change their lives,” he added.
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