Waymo raises $3 billion in first round of funding

To date, the electronic car manufacturer Waymo has mostly foregone fundraising in favor of obtaining necessary funds from the parent company Alphabet which, among other things, is also the parent company of Google. However, March saw a shift in the company’s policy, with Waymo announcing that it would be launching its first round of fundraising.

Despite the large amount of funding, the company is returning minimal revenue

The round exceeded the company’s initial expectations to gather $2.25 billion of venture capital and reached $3 billion by the end. Perhaps due to the firm’s association with Google and similar well-known entities, the round of funding attracted a wide range of investors. Initially, some of the investors included Mubadala Investment Company, Magna International, Andreessen Horowitz, AutoNation, Silver Lake, Canada Pension Plan Investment Board and Alphabet itself. As the round extended, more investors came in, with the likes of Fidelity Management and Research Company, T. Rowe Price Associates and Perry Creek Capital chipping in to make and eventually exceed the company’s goal.

Although Waymo insists that its self-driving cars will not be revolutionary and change the automotive world, the company’s actual showing has thus far been limited at best. Without the parent company’s backing, the project might have already been canceled based on figures alone. Waymo’s production has thus far brought on a loss of nearly $1 billion that could have only been offset by unconditional funding from a large company such as Alphabet. In contrast, the revenue has so far been close to nonexistent, as Waymo’s self-driving taxis are only available in limited quantity and confined to certain areas of Phoenix, Arizona.