FM Capital, a venture capital firm focused on early-to-mid stage technology companies in automotive and transportation, announced it has completed its largest fund close to date.

FM said its Fund IV raised $240 million. The oversubscribed round included new and existing investors including dealers, distributors, OEMs, suppliers, insurers and other industry-related entities.

“We’re elated that the fund was oversubscribed by 20%, with the capital coming from the best and brightest in the automotive industry,” managing partner Chase Fraser said. “Those investors aren’t just backing a fund — they’re leaning into what’s next. For the entrepreneurs we support, this network isn’t just capital, it’s a strategic edge.”

FM Capital’s investment focus is primarily on early to mid-stage companies in a range of transportation technologies, including artificial intelligence and software as a service supporting dealership operations, aftermarket services and remarketing, autonomy and robotics, connectivity and fleet management, and new energy transition.

The firm said it identifies trends and partners with teams that are “reinventing the movement of people and goods as well as redefining how transportation services are delivered and consumed.”

FM Capital said its investment focus will remain on companies that have generated excitement and loyalty among end-users, achieved revenue traction and are interested in scaling rapidly by leveraging the firm’s experience, track record and network.

“With the expanded size of the fund, we’re positioned to back more than 20 transformative companies with initial investments ranging from $5 million to $15 million,” managing partner Mark Norman said. “From Series A to growth, we’re fueling the next wave of innovation in transportation.”