A dealership group from Mexico helped drive Automotive Ventures’ latest investment fund this fall to $19 million, well above the initial $15 million goal.
Dalton Corp., a conglomerate based in Guadalajara, contributed an undisclosed amount. The company runs 51 Dalton Motors automotive and motorcycle retail stores, including three in the United States near San Diego.
Dalton Corp. wasn’t the only international investor. Nurlan Smagulov, chairman of Astana Group, a dealership group in Kazakhstan, committed $3.5 million to the fund this year, according to Kazakhstan media coverage.
Automotive Ventures general partner Steve Greenfield said working with international investors in a global economy makes sense.
“These dealers internationally, they’re suffering from exactly the same challenges that dealers in the U.S. are,” Greenfield said. “Why wouldn’t other dealer groups around the world want to invest in us and co-opt us as a thought partner to help them evolve their markets?”
Greenfield said international investors gain visibility into early-stage automotive technology companies in the U.S. market and can determine which of the technologies they might be able to use.
Other VC funds also are attracting international investors. FM Capital, an investment fund focused on retail technology and autonomous and connected vehicles, attracted auto industry investors from Japan, Israel, the United Arab Emirates, Canada and Australia for its $240 million fund announced in April, managing partner Chase Fraser told Automotive News. He declined to share additional details.
U.S. investors also took part, including Cox Automotive and Holman, an automotive services company with a large dealership group that acquired a minority stake in FM Capital in August 2024.
Beyond automotive retail, Dalton Corp. operates divisions in financial services, renewable energy, real estate and innovation. The company considers retail automotive and mobility innovation to be an important focus, said Raul Pardo Salazar, Dalton’s head of strategy.
“The United States continues to be the most dynamic market in the world for dealership technology, digital retail and customer experience platforms,” Salazar said. “Joining this fund allows us to stay close to the business models that are shaping the next generation of automotive distribution.”
While the company is expanding its Dalton Motors division in the U.S., Salazar said its Automotive Ventures investment is “not so much about expanding our footprint as it is about strengthening our innovation pipeline and finding scalable technologies that we can apply across our network in Mexico and the U.S.”
He declined to say how much Dalton invested.
“We prefer not to disclose the specific amount, but it represents a meaningful strategic position within our innovation and mobility technology investments,” Salazar said. “It’s a long-term commitment aimed at building knowledge and partnerships, not just financial returns.”
VC investors gain early access to startup technologies
Dalton is looking for early access and insight into technologies that address customer interactions, Salazar said.
“The idea is for Dalton to continue being a reference point for how traditional retail groups can evolve responsibly while staying profitable,” he said. “This also gives us the chance to work closely with founders and startups that could become future partners within our ecosystem in Mexico and the U.S.”
Similarly, Astana Group this year said it was interested in developing a U.S. presence and accessing early-stage automotive technology innovations it can take home.
Automotive Ventures attracted plenty of U.S. investors for its new fund. When the firm announced its initial $15 million goal in March, Automotive News reported it attracted at least 18 U.S. dealer principals, including returning investors such as Liza Borches, CEO of Carter Myers Automotive in Charlottesville, Va.; Jason Tamaroff, vice president of Tamaroff Auto Group in Southfield, Mich.; Marsh Butler Jr., president of Butler Auto Group in Macon, Ga.; and Brian Godfrey, president of Pat Milliken Ford in Redford Township, Mich.
Plans call for using the money initially for startups in ground transport, aviation and marine. Dealer-facing software startups will come into the equation once a previous Automotive Ventures fund’s investments in that space are completed, Greenfield said.
Automotive Ventures is based in Atlanta.