Currently, electric cars聽1 represent about global vehicle purchases. Depending on how you look at it, that鈥檚 either a compelling growth story or a disappointing share relative to potential.
On the positive side, EVs are gaining ground. In 2025, sales increased by more than 20% year on year, rising to 21 million units, per .
On the other hand, early EV optimists assumed we鈥檇 be much further along by now. And while sales are up, the is slowing, driven by affordability constraints, trade friction and shifting government incentives.
The broad trend: Funding to EV-related startups reflects a similar mix of optimism and restraint. Investors are backing big rounds for a handful of upstart brands like customizable pickup truck maker and micromobility spin-out . Yet funding remains far below prior peaks and exit activity appears muted.
The numbers: Companies in Crunchbase鈥檚 electric vehicle category are on track to see higher investment this year relative to last. Around $3.6 billion has gone to companies in the space so far in 2026, spread across about 50 rounds.
However, we鈥檙e still nowhere near the 2021 cyclical peak, when nearly $19 billion went to global EV startups. For perspective, we charted investment and deal count since 2020 below.
Noteworthy deals
The largest round tied to the EV space this year went to , which isn鈥檛 an electric vehicle brand but rather a developer of autonomous driving technology that has been tested on EVs. The London-based company raised $1.2 billion in a February financing at an $8.6 billion valuation.
Another standout fundraiser was Troy, Michigan-based Slate Auto, a developer of lower-cost electric pickup trucks that can be customized as SUVs. The -backed company raised $650 million in Series C funding last week and says it plans to deliver its first vehicles to customers later this year.
The Rivian spin-out Also, focused on electric bikes and skinny four-wheeled models capable of carrying cargo, is also scaling up, securing $200 million in Series C funding in March. The startup also plans to partner with to develop autonomous delivery vehicles.
China-based startups are also scaling up. , a developer of autonomous electric trucks,聽 secured $310 million early this year, while , the flying car subsidiary of EV brand , picked up $200 million in fresh financing.
Exits
While private funding still flows to EV-related startups, exit activity has been comparatively slow.
On the IPO front, Chinese EV car brand made its Hong Kong debut last month. And India-based electric scooter and charging provider went public last spring.
U.S. startups, however, have been sitting out the IPO market in recent quarters, with the exception of a $9 million micro- early this year from solar electric vehicle brand .
As for M&A, we haven鈥檛 seen sizable disclosed-price purchases of private, venture-backed EV companies in recent quarters, per Crunchbase data. Another deal in the wings, meanwhile, is a planned SPAC merger transaction involving Swedish autonomous electric freight shipping startup .
Outlook
The EV funding environment, neither especially weak nor particularly robust, contrasts sharply with the investment climate for autonomous driving startups, which hit a record amount this year. Perhaps, over time, we鈥檒l see some momentum spilling over to EVs, as you can鈥檛 have autonomous vehicles technology become widespread without somebody supplying the actual vehicles.
Related Crunchbase query:
Related reading:
Illustration:
Category encompasses light-duty passenger vehicles, including cars, SUVs, pickup trucks and small vans.↩
Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.
![Illustration of a guy watering plants with a blocked hose - Global [Dom Guzman]](/wp-content/uploads/quarterly-global-3-300x168.jpg)
67.1K Followers