- The pandemic has disrupted how people travel, accelerating trends such as e-bikes and scooters while forcing innovation in cars and delivery.
- Venture capital investors funds piled $11.8 billion into the wider sector of mobility in the first three months of 2020, a 62% year-on-year increase, per PitchBook data.
- Berlin-based VC fund Target Global has raised $1 billion to splash on startups, including a $130 million dedicated mobility fund. Target identified 9 hot startups shaping the mobility industry within delivery, personal electro-mobility, and flexible car ownership.
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The COVID-19 pandemic has sent shock waves through the mobility sector.
In the months after national lockdowns were announced, use of public transport in the US fell by more than 70%, per data from Apple Maps. Countries where lockdowns were put in place earlier and more severely, such as Italy and Spain, reported that new car sales fell by as much as 85%.
Now a host of new startups are looking to make these changes in how people move around permanent, with an influx of funding into electric vehicles, micro-mobility like scooters, and last-mile delivery.
VC funds spent $11.8 billion on mobility in the first quarter alone, according to PitchBook’s Mobility Tech Q1 2020 report. This represents a 62% year-on-year increase.
Berlin-headquartered VC fund Target Global has raised over $1 billion in total, including over $130 million for a dedicated mobility fund.
It’s invested across transportation, automotive, and logistics since the fund was launched two years ago.
Now, there are even more investment opportunities in mobility, as the pandemic has disrupted supply chains and fundamentally changed the way that cities operate, says Jorge Fonturbel Saez, investment manager at Target Global.
“The mobility sector will play a key role in reactivating the global economy by finding new ways to flexibly respond to sudden disparities in supply and demand for cargo logistics, rapidly restructure disrupted supply chains, and safely and efficiently transport workers to their new work environment,” he said.
Target Global has identified nine startups operating in three major areas that it says will shape the future of mobility. Some, but not all, are in Target’s portfolio.