Eurazeo closes €80m round for smart city start-ups

The second venture will fund start-ups pioneering in working from home, electric mobility, food delivery and more.

Parisian venture capital firm Eurazeo has closed the first round of its second Smart City fund, promising €80m for international start-ups across energy, mobility proptech and logistics.

The round saw contributions from new investors across Europe and Asia alongside Eurazeo’s existing partners, including Netherlands carmaker Stellantis, global major energy operator Total and Thai real estate developer Sansiri. Almost 25 investments were made in these regions and in North America, funding start-ups specialising in working from home, shared and electric mobility, renewable energy transition and food delivery.

Success stories from Eurazeo’s first Smart City fund

Spanish last-mile logistics company Glovo was one of the start-ups to receive funding in the first Eurazeo Smart City venture. In late 2019, Glovo became the second privately held business in Spain to reach unicorn status after a $150m investment led by Mubadala.

At the time, the company’s co-founder and CEO, Oscar Pierre, said Glovo’s vision was to “make everything within the city instantly available” for its customers. This is aligned with the overarching goal of Eurazeo’s Smart City fund, which the firm described as support for start-ups driving “rapid transformation of cities for the benefit of their residents”. It added that the Covid-19 pandemic has sped up our shift to smarter cities and a green recovery.

Other start-ups that were funded in the first Smart City venture include Volta Charging, the US charging network for electric vehicles and Weride, the Chinese brand behind autonomous mobility.

Matthieu Bonamy, partner at Eurazeo subsidiary Idinvest Partners, commented: “The Smart City venture strategy aims to select and support the future global leaders in each of their sectors thanks to an expertise in our investments themes and a selectivity rate at the level of the best generalist funds.

“The fund benefit is also extra-financial as we support entrepreneurs who take decisive action to reduce carbon emissions and enable the development of more inclusive and resilient cities. This is crucial today as cities consume 78pc of the world’s energy and produce more than 60pc of the world’s greenhouse gases.”

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