Source: Zag Daily

Via ID and Dealroom.co. have published a new report on European Mobility startup investment called ‘State of European Mobility Startups 2023’, ranking EIT Urban Mobility, Bpifrance & the European Innovation Council as the three leading investors.

The report looks at the European mobility startup fundraising environment against the backdrop of a globally declining venture capital market. It reveals that in 2023, European mobility startups secured funding of $9 billion, which was a 26% decrease from 2022.

There is also positive news for the mobility sector, in that it is still listed as the third most funded industry in Europe. EIT Urban Mobility’s Director of Impact Ventures, Fredrik Hanell told Zag Daily that they had invested in over 100 startups in 1000 days.

EIT Urban Mobility is an initiative formed by the European Institute of Innovation and Technology (EIT). EIT believes that there are various reasons for 2023’s decline in start-up funding, including market saturation, investors being more cautious after a brisk post-pandemic expansion, macroeconomic uncertainties, micromobility regulatory challenges, and a shift in consumer preferences may have also played a part in investor confidence declining.

Even with numerous challenges, EIT will continue to push forward with its investment in the mobility sector.

“Cities are looking for these solutions that bring a positive impact,” said Hanell. “By leveraging emerging technologies, forging strategic partnerships, and addressing evolving consumer needs, mobility startups can position themselves for success in an increasingly competitive landscape that goes beyond Europe. We believe this is where the landscape for mobility is going.”

Mobility investment breakdown

In 2023 E-mobility companies with a focus on EV batteries, EV charging and infrastructure shone brightly, with these start-up companies receiving the most funding, securing over 50% of total investment for the mobility sector.

Hannell predicts that alternative mobility start-ups will have a surge in popularity this year.

“Startups focusing on electric two-wheelers, e-motorcycles, and e-scooters are poised to attract attention as micromobility solutions continue to gain traction,” he said. “And following this logic, in 2024 I believe that initiatives aimed at extending battery life, especially of light vehicles, promoting battery swapping, and enhancing sustainability are likely to drive investment.”

“Looking ahead, the future of mobility startups in Europe will likely be shaped by several key factors. The continued growth of electric vehicles, advancements in autonomous technology, and the rise of shared mobility services are expected to drive innovation and investment in the sector.”