In this week’s Kingcrowd Investment Roundtable, the team explores trends in transportation startup investments, with electric vehicles (EVs) leading the pack, followed by planes and eVTOLs. They also discuss Elemeno Health’s pivot and down round, highlighting the company’s potential for future growth. Lastly, they dive into the critical differences between common and preferred equity, emphasizing the impact on investors’ returns.
What are the top transportation categories attracting investor dollars?
Léa explains that electric vehicles (EVs) are leading the way in transportation startup investments. Companies like Alpha Motor and Liquid Piston have raised significant funds. Meanwhile, startups related to planes and eVTOLs (electric vertical takeoff and landing) are also gaining traction.
Are investments in eVTOLs worth the risk?
Teddy notes that while eVTOLs have significant potential, they operate in a highly regulated environment and are capital-intensive. These are “moonshot” investments with high risk but also high potential returns, making them more suited for long-term bets.
What is Elemental Health, and why is it a unique investment opportunity?
Teddy shares that Elemental Health offers custom-built training platforms for hospitals, allowing medical staff to access important procedural information quickly. After a pivot and a recent down round, the company has improved its gross margins and maintained venture capital support, potentially making it an attractive investment at a lower valuation.
What should investors know about preferred vs. common shares in startup investments?
Léa explains that preferred shares provide liquidation preferences, meaning preferred shareholders get paid before common shareholders in the event of a sale or liquidation. Brian adds that investors should consider prior capital raised and any liquidation preferences that might affect their returns, especially in companies like Elemental Health, which have raised millions in prior rounds.
