Jan Hauser, a seasoned expert in the urban mobility start-up ecosystem, holds the position of Investment and Portfolio Manager at EIT Urban Mobility Innovation Hub East. EIT Urban Mobility, a leading initiative of the European Institute of Innovation and Technology, strives to accelerate the transition towards more sustainable, efficient, and user-centric urban transport systems across Europe. EIT Urban Mobility aims to foster collaboration between cities, industry, and academia to tackle pressing mobility challenges. By leveraging cities as living labs, it demonstrates how innovative technologies can improve the transportation of people, goods, and waste. With extensive experience in EU-funded projects and a background in academia, Hauser focuses on bolstering innovation and fostering international collaboration. In his pivotal role, he oversees investments and the growth of start-ups, with a vision to reshape the urban mobility landscape.EIT Urban Mobility is touted as Europe’s largest investor in mobility start-ups. Can you elaborate on your funding model?
EIT Urban Mobility indeed serves as a key investor in European mobility start-ups, distinguished by our unique funding model and long-term involvement in the start-up ecosystem.
What’s the total investment amount, and how is it distributed among start-ups?
We operate with a total fund size of €50 million, targeting early-stage start-ups that are post-product or in their early-revenue phase. Each year, we aim to invest in 12 to 15 promising start-ups, focusing on those within Europe and Horizon Europe-associated countries. Our typical initial investment ranges from €50,000 to €150,000, with the potential to invest up to €2 million over time.
Beyond financial investment, what kind of support does EIT Urban Mobility offer to its portfolio start-ups?
Beyond financial investment, EIT Urban Mobility offers a comprehensive suite of support services to its portfolio start-ups, designed to accelerate growth and foster innovation in urban mobility. These services include accelerator programmes run in collaboration with corporate and university partners, a scale-up programme to support the growth of larger start-ups, and the Investment Readiness Programme, which prepares early-stage start-ups for seed investment rounds. Additionally, we fund pilots in cities or with corporates to test new solutions and provide practical use cases, ensuring start-ups can validate and refine their innovations in real-world environments.
How many start-ups are currently part of the EIT Urban Mobility network?
Currently, our network includes over 150 start-ups in which we have directly invested and more than 450 start-ups that we have supported through our various programmes.
What are the key criteria for selecting them?
The key criteria for our investments are two-fold: Return on Investment (RoI) and Impact. We seek start-ups that not only promise strong financial performance but also demonstrate a clear potential to create significant social and environmental value. Like many VC investors, we also evaluate essential factors such as the strength and expertise of the team, the uniqueness and scalability of the solution, the level of innovation, product-market fit, the size and potential of the market, demonstrated traction, and other critical indicators of future success.
What are the most significant differences you’ve observed between East and West European start-ups in the mobility sector, concerning their approaches, needs, and challenges?
East European start-ups might face challenges in securing funding compared to their West European counterparts, potentially due to less developed venture capital ecosystems. However, they may also offer unique opportunities by addressing specific regional needs and providing cost-effective solutions. West European start-ups often have greater access to funding and a more established network, potentially leading to faster growth but also more competition.
What are some of the most promising trends or innovations you see emerging from the start-ups within your network? What problems are they tackling, and what are their potential impacts on urban mobility?
The most promising trends include solutions related to active mobility, electrification, smart traffic management, last mile delivery, and sustainable transportation options. These start-ups are addressing problems like traffic congestion, traffic safety, and air pollution.
What are the biggest challenges facing mobility start-ups in Europe today, and how is EIT Urban Mobility helping them overcome these hurdles?
Securing sufficient funding, finding product-market fit, navigating complex regulatory environments, achieving market adoption, scaling operations, and demonstrating a clear return on investment and measuring impact are all common hurdles. EIT Urban Mobility helps by providing access to its extensive network, funding opportunities, pilot projects, resources, and business development support.
How does EIT Urban Mobility measure the success of its investments and the overall impact of its programme on the mobility landscape? What metrics do you use?
EIT Urban Mobility uses a combination of metrics including the number of start-ups funded, the amount of funding attracted, the job creation generated by portfolio companies, the number of successful exits (acquisitions or IPOs), and the overall environmental, health, knowledge, and social impact of our investments.
