Author: Julien Polenne, Head of Private Capital Markets at Bryan, Garnier & Co
The mobility tech sector is experiencing robust growth driven by groundbreaking advancements in electric vehicles, shared mobility, micromobility, autonomous driving and smart infrastructure.
These cutting-edge technologies are not only revolutionising the way we move but are also benefiting from robust government support and a significant shift in consumer preferences towards eco-friendly, flexible transportation options. This combination not only enhances the sector’s appeal but also allows for substantial returns, making them a prime target for investment.
Here I delve into the diverse range of investors helping advance the European mobility tech space, spotlighting their distinctive investment strategies and notable contributions.
Exclusive Mobility Funds
These investors are a specialised group of financiers who dedicate their resources and expertise exclusively to the new mobility sector.
They leverage their deep industry knowledge and wide network to identify and support innovative technologies that are transforming the way we move. Key investment areas include digital solutions such as shared mobility and connected car technologies, to deep tech solutions such as batteries, autonomous vehicles and electric air mobility. Often capable of investing into earlier stage innovation they play a crucial role in shaping the future of transportation.
Notable examples include:
- Shift4Good has raised over €100 million to invest in sustainable mobility start-ups. Its current portfolio includes Laka that offers bike insurance, and Vapaus, a Finnish employee bike benefit platform which has achieved sixfold growth in two years
- Vektor Partners led a $5.4 million Series A funding round for Drover AI, which uses computer vision and machine learning to enhance safety and regulatory compliance in the micromobility sector
- Maniv Mobility made investments in companies such as Mundimoto which specialises in the buying, selling, and renting of second-hand motorcycles and scooters
Sustainability & Impact Investors
This investor group is dedicated to prioritising environmental and social impact alongside financial returns. Their focus is on projects and companies that contribute positively to the planet and society, making them key players in the push for a more sustainable future.
Mobility tech aligns perfectly with their goals as it often offers solutions that reduce emissions and promote sustainable transportation. However, while some of these funds continue to support industrial tech, the challenging economic environment has led many to shift their strategies toward more mature, asset-light, and digital models. This strategic pivot creates a funding challenge for many of the mobility technology companies that are focusing on industrial models, delaying the emergence of some of the key technologies of tomorrow.
Notable examples include:
- Move Energy invested into LeydenJar, a company revolutionising battery technology with its pure silicon anodes, which offer higher energy density and faster charging capabilities
- Planet First Partners led a €100 million Series C funding round for FINN, a car subscription service
- Lightrock invested in Group14 Technologies, a firm developing advanced silicon battery technology together with Decarbonization Partners (a Joint Venture between Blackrock and Temasek)
- Kinnevik invested in Vay, which is pioneering tele driving technology. Vay’s approach allows remote drivers to control vehicles, paving the way for safer and more efficient autonomous driving solutions
Generalist Tech Investors
With trillions under management, this group of investors are renowned for their broad investment scope, enabling them to cover a wide array of technology sectors and stages of maturity. Their diverse mandates allow them to explore opportunities across the tech landscape, from software and hardware to emerging technologies.
A key component of their sustainability verticals is generally mobility, recognised for its crucial role in reducing carbon emissions and enhancing urban living. Investments span a broad array of verticals including electric vehicles, public transportation, advanced logistics technologies, autonomous vehicle technology and smart mobility solutions, such as shared mobility services, electric scooters, ride-sharing platform. Thanks to their transformative societal impact and potential for high returns, these mobility technologies have become particularly attractive to these investors.
In most cases generalist tech investors have the capacity to support mobility companies as they mature and reach profitability. Then, they can provide the significant capital needed for rapid growth and transformative operations, such as mergers and acquisitions.
Notable examples include:
- BlackRock: Strongly supports EV mobility development with their investments in charging infrastructure through Ionity
- VNV Global invested in both BlaBlaCar, a long-distance carpooling service that connects drivers with passengers looking to share travel costs, as well as Voi Technology, a shared micromobility operator specialising in electric scooter and bike sharing to promote sustainable urban mobility, alongside Balderton, Creandum, The Raine Group and NordicNinja.
- Sequoia Capital, Fidelity Investments, D1 Ventures, G Squared and others invested in Bolt, a European mobility platform offering ride-hailing, scooter rentals, and food delivery services.
- Earlier this year, TIER and Dott, two leading micromobility companies, announced a merger to form a dominant player in the European market. This merger is backed by several key generalist tech investors such as Mubadala Capital, Sofina, White Star Capital, Estari, along with others like M&G, Prosus Ventures, and Novator
- Northvolt, the largest European battery manufacturer, is backed by a broad range of generalist tech investors including Blackrock, Omers, CDPQ, CPPIB, GIC, Bailly Gifford, Goldman Sachs among others
Family Offices
This group manages the wealth of high-net-worth families, often emphasising long-term investments and legacy projects.
Family offices typically focus on investments that align with their values and long-term goals, making the innovative and eco-friendly nature of mobility tech particularly appealing. They are drawn to the sector’s promise of transforming urban mobility, reducing carbon footprints, and enhancing the quality of life through smarter, more efficient transportation systems. Long term focused, risk minded, with sometimes very deep pockets, they are probably the most agile type of investors supporting all stages of development.
Notable examples include:
- Exor invested in Volocopter, a pioneer in urban air mobility solutions; Cowboy, a company known for its innovative electric bicycles; and Upway, specialising in refurbishing and selling second hand electric bikes, highlighting their commitment to advancing sustainable and innovative transportation solutions
- Aqton SE, the family office of Stefan Quandt, invested in Lilium, another company developing electric vertical takeoff and landing (eVTOL)
- A.P. Moller Capital has focused particularly on transportation and logistics. It has invested in companies like Forto, which is a digital freight forwarder, and Loadsmart, a digital logistics platform
Corporate Venture Capital
Corporate VCs, such as those from automotive OEMs, energy utilities, banks, and insurance companies, engage in strategic investments to support their core business operations and explore new growth areas. These investments are designed to create synergies with their existing products and services, enhancing their overall market position and technological capabilities. As such they can support nascent technologies and accompany companies as they scale up. By investing in innovative startups, corporate VCs can stay ahead of industry trends and integrate cutting-edge technologies into their business models.
While Corporate VCs have historically supported the emergence of mobility tech companies as direct investors, the evolving perception of risk has led them to increasingly shift their investment strategy to Limited Partners in specialised venture capital funds like Maniv and Shift4Good. This allows them to access innovation, and align with their strategic goals while mitigating risk.
Notable examples include:
- Total Energy Ventures has invested in several mobility tech startups, including Xee, Getaround, Wunder Mobility, HysetCo, and Autogrid, to promote sustainable and innovative transportation solutions
- PULSE, the CMA CGM Energy Fund, contributed to Verkor’s €2 billion mega-fundraising together with Renault Group to accelerate the construction of a high-performance battery gigafactory in France
- Mercedes-Benz Group (Daimler) led a $175 million investment in Bolt to support its technological development and expansion across European and African markets
In summary, the diverse array of investors in the European mobility tech space showcases a wide range of unique strategies to provide essential capital to companies at every stage of their development.
New emerging technologies, such as next-generation batteries and advanced driver-assistance systems (ADAS), are particularly captivating for investors. These innovations have the potential to revolutionise the mobility industry by enhancing efficiency, safety, and sustainability. As the landscape continues to evolve, the ability to adapt and invest in these cutting-edge technologies will be crucial for the success of the new mobility tech sector.
The future of mobility tech investments looks promising, driven by a continuous interest in sustainable and innovative solutions. However, this sector like many others faces significant challenges, including regulatory hurdles, technological risks, and market volatility. Nevertheless, investors who skillfully navigate these complexities are well-positioned to achieve substantial rewards.
