Porsche SE invests in Israeli startup with focus on semiconductors

27 September 2021

More carmakers are expanding their portfolios, especially in the realms of technology – an increasingly innovative and competitive field. Porsche Automobil Holding SE (Porsche SE) is one of those that is branching out. The company recently invested in proteanTecs, an Israeli software startup that monitors the performance of semiconductors and electronic systems over their entire lifecycle.

Investment strategy

proteanTecs is an astute addition to Porsche SE’s portfolio and shows the company’s zeal to stay on top of the game. The automotive industry is constantly faced with new challenges, especially now that it has entered the age of electrification and connectivity. The ongoing chip shortage has paralysed automakers for almost a year, forcing more carmakers to suspend production. Hence, having a startup on board that monitors the lifecycle of semiconductors looks like a sensible move.

‘Due to the fast-paced technological advancements and the ever-growing requirements for new chip generations, there is an enormous market potential for the technology of proteanTecs,’ said Lutz Meschke, member of the board of management at Porsche. ‘We see benefits and the necessity for the use of this technology in many areas, including the automotive industry.’

Market potential

In its latest funding round, proteanTecs raised $50 million (€43 million), bringing the total funds raised to $150 million (€128 million). Porsche SE said its venture-capital investment was ‘future-oriented’. The Israeli company serves some of the largest businesses in the automotive sector, which continues to grapple with a semiconductor shortage. Its data-driven insight into chips provides significant input.

Founded in 2017, proteanTecs provides deep-data monitoring services for advanced electronics and claims to be particularly relevant for new semiconductor generations. It has developed a cloud-based platform, which utilises data created in chip-embedded agents ‘to predict faults before they become failures.’ This of course results in cost savings that affect the entire semiconductor value chain. Its latest cash injection will be used to accelerate the startup’s expansion, product development, and strategic collaborations.

‘The investment will strengthen proteanTecs’ technological and market leadership,’ said Shai Cohen, CEO and co-founder of proteanTecs. ‘It solidifies our strategy of bringing together market leaders’ diverse viewpoints to solve a cross-stake challenge, while validating the need for advanced monitoring solutions from design to field.’

Porsche SE has established itself as a successful investment holding company since its launch in 2007. It holds the majority of ordinary shares in the Volkswagen Group, but also invests in other companies in the mobility and industrial-technology sectors. The listed company strategically invests in businesses that have an effect on the entire automotive value chain and shows above-average growth potential.