U.S. Mobility Startups Feel the Chill From the COVID-19 Crisis

File Photo: A woman walks past electric Lime scooters parked on the sidewalk in downtown Los Angeles, California, U.S., October 16, 2019. Reuters/Mike Blake. Article by Paul Lienert.

(Reuters) – U.S. startup companies focused on transportation technology could be among the casualties of COVID-19, according to venture investors who say new funding and investment exits are drying up as the economic outlook darkens.

“We don’t know what it will look like on the other side of this zombie apocalypse,” said one investor who spoke with Reuters. Seven investors in different parts of the country spoke with Reuters about the situation in the transportation startup industry. All have transportation-related startups in their portfolios. They spoke on background because they were not authorized to speak on behalf of their investment partners. “Almost all transportation startups are at greater risk” from the economic shock waves caused by the coronavirus pandemic, a Silicon Valley investor told Reuters. “Will there be cascading effects that last for years? Absolutely.” The startups at greatest risk are the ones that have not closed recent funding rounds or have just started fund raising, according to the VCs, who represent both corporate and financial investors. […]

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