Motion Ventures, a Singapore-based maritime venture firm, has launched a new $100 million fund. The firm claims it is the largest maritime-focused tech fund to date. Motion Ventures Fund II plans to invest between $250,000 and $10 million in at least 25 companies over the next 18 to 24 months.
The fund will focus on technologies that drive digitalization and decarbonization across the global maritime supply chain. It also expands Motion Ventures’ strategic backing to more than 17 industry corporations. According to the firm, this makes it the “only consortium of this size for the maritime value chain.”
Motion Ventures has already raised more than half of Fund II’s target and has invested in two companies so far. The commercial shipping sector is facing pressure to digitalize and decarbonize.
Modernising the world’s maritime fleets is a significant challenge. However, a growing ecosystem of technology-driven start-ups hopes to accelerate this transition. Motion Ventures’ new $100 million fund promises to accelerate many of these enterprises.
Shaun Hon, founder and general partner of Motion Ventures, says studying the maritime sector is like traveling back in time. “The industry remains dependent on manual, paper-based processes, with many operators still relying on fax machines,” Hon explains. “It can be pretty chaotic.”
This makes the maritime an exciting opportunity for innovation.
Maritime tech investment hits new milestone
Allied Market Research expects the maritime technology sector to grow at an average rate of 10.7% annually between 2021 and 2031. By the end of that period, the market could be worth more than $400 billion.
Motion Ventures’ first maritime fund, launched in 2021, focused largely on software solutions for the maritime sector. The second fund will offer larger investments, ranging from $250,000 to $10 million. The venture firm has also assembled an industry consortium of 17 large maritime companies.
These companies can offer start-ups advice and support on new innovations. Many could potentially become customers. Jan Holm, an advisor to Motion Ventures, argues that the consortium model is particularly important.
The maritime industry is no stranger to complexity, but the challenges we face now, from lowering emissions to digitizing operations, require a new level of collaboration,” he says. Motion Ventures Fund II has already made three investments. It has taken stakes in OceanScore, a specialist in emissions data, and Fernride, which develops autonomous vehicles for ports.
The fund has also invested in a third undisclosed business. Hon expects to build the fund’s portfolio to around 25 maritime businesses over the next few years. The successful fundraising marks a notable milestone for Motion Ventures.
It underscores the growing interest and investment in maritime technology.
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