We've been investing out of the Automotive Ventures DealerFund for just over a year - and for that entire duration we've been looking to identify a startup in the ADAS calibration space that will benefit car dealers’ operations.
We're very excited to announce our latest investment out of the dealer fund: Kinetic.
All new vehicles have at least 3 sensors, with most modern vehicles having 30 or more. New capabilities such as ultrasonic, radar, and camera-based technologies are exponentially increasing the complexity of servicing modern vehicles.
Kinetic provides digital maintenance and repair services for EVs, AVs and Advanced Driver Assistance Systems (or ADAS) from any manufacturer via its Kinetic Hubs, which are stand-alone service centers staffed by certified technicians.
The solution is built on Kinetic’s proprietary software, AI, computer vision and robotics technology and provides precision servicing for individuals and industry partners, including car dealerships, rental companies and traditional automotive repair shops.
Every Kinetic Center comes with everything you need to modernize and future-proof your shop: robotics, proprietary AI, and in-house expertise.
Partner dealers can make their business the go-to destination for fast, precise, digital repair and maintenance across all makes and models without the burden of costly equipment, software updates, or the need to hire new staff.
Why did we invest in Kinetic?
Kinetic allows us to check three investment thesis areas out of the DealerFund.
First, with the complexity of the technology in vehicles only accelerating, we believe that ADAS calibrations will provide a brand new, high-margin revenue source to car dealers to offset some of the uncertainties mounting elsewhere in the business model.
In addition, we believe that the shortage of skilled technician labor is only going to get worse, given the complexity of the cars, the specialized skill set required to work on the technology in vehicles, and a general shortage of high-quality labor.
We also believe that we are entering an era where dealers will begin to focus much more on their cost structures, and therefore process automation at the dealership is going to grow even more important in the short term.
Firms like Automotive Ventures’ portfolio company WarrCloud have illustrated our thesis area around process automation at the dealership, and this latest investment in Kinetic will prove out that a focus on dealership fixed operations, labor efficiency, and more specifically generating new revenue from the emerging need for more ADAS calibrations will prove to be an investment in the right company, in the right macro industry trend, at the right time.
We envision a future where there will be multiple Kinetic Centers in every city across America to satisfy the need of first ADAS Calibrations, but over time additional digital maintenance and service of vehicles. And we are positioned to ensure that automotive dealerships play a key role in driving adoption and collecting revenue and profit from these new Kinetic Centers.
If you’re interested in learning more, you can check out Kinetic at www.Kinetic.auto.