Urban Tech 2023

UrbanTech2023 November2023 UrbanTechSustainabilityFund 2150isaventurecapitalfirminvestingintechnologycompaniesthatseektosustainablyreimagineandreshapetheurbanenvironmentandenableasustainableandscalablefutureofmassurbanisation.2150ʼsinvestmentthesisfocusesonmajorunsolvedproblemsacrosswhatitcallstheʻUrbanStackʼ,whichcompriseseveryelementofthebuiltenvironment,fromthewayourcitiesaredesigned,constructedandpowered,tothewaypeoplelive,work,move,andarecaredfor.Seemoreat2150.vc Globalstartup&venturecapitalintelligenceplatform. Dealroom.coistheforemostdataprovideronstartup,early-stageandgrowthcompanyecosystemsinEuropeandaroundtheglobe. FoundedinAmsterdamin2013,wenowworkwithmanyoftheworld'smostprominentinvestors,entrepreneursandgovernmentorganizationstoprovidetransparency,analysisandinsightsonventurecapitalactivity. Page/2 Keytrends TotalUrbanTechVCfunding UrbanTechstartupfundinghasalreadyreached$26.6Bandsurpassed2020levelsbutthisstillrepresentsa39%dropfrom2022. Thisdeclineislargelyattributabletoasharpdropinlate-stagerounds,ontheotherhandearlyandbreakoutstagesareshowingmoreresilience. Greenbuildingsstartupsarebucklingthetrendwith$5.3Braisedin2023,ontrackfortheirbestyeareverandmarkingathreefoldincreasefrom2020. TheUrbanCapitalStack Withtheclimatetechsectormaturingtowardsmorelargescaledeploymentsandamorechallengingfundingenvironment,thecapitalstackforurbantechgoesbeyondventurecapitaltoembracemoredebt,privateequityandprojectinfrastructurefinancing. ClimateTechfundsarealsoslowingtheirfundraise.$13Bareprojectedtoberaisedin2023,a62%declinecomparedtolastyear. UrbanTechstartupsarealsoraisingmassiveamountsofnon-dilutivecapital,especiallydebt.Nearly$17Bhavebeenraisedbyurbantechstartups,nearall-time-highandathreefoldincreasefrom2020. Investmenttrends Enable: SaaSxconstructionstartupshavesufferedawhooping68%declineinVCfundingdespitetheconstructionindustryproductivitychallenges. Build: Sustainablebuildingconstructionstartupsontheotherhandhaveraisedarecord$2.5Bthisyear,drivenbysustainablecementandgreensteel. Operate: Buildingoperationdecarbonizationstartupsontrackfortheirbestyearwith$2.6alreadyraised,ledbyresidentialsolarandbuildingenergymanagement. Experience: Drivenbyrealworldevents,startupsaimingtopreventandcombatwildfireshaveraisedover $100MVCfunding,onparwith2021records. Page/3Source: Dealroom.co Tableofcontents 1Introduction 2InvestmentTrends&Unicorns 3UrbanStack:Enable 4UrbanStack:Build 5UrbanStack:Operate 6UrbanStack:Experience Page/4 1Introduction Climateriskisacceleratingandcitieswillplayakeyroleinensuringwecanhitsustainabilitytargets. Fromthebuildingsweinhabit,tothecarswedrive,everyurbanelementcanbemeaningfullyaddressedtoadvancetheclimatetransition. Urbantechnologiescansupportusrethinkingandrenovatingourwaysofbuildingandlivingincities. Thereʼsahugedifferenceinsufferedimpactsbetween1.5ºC&2.0ºC. Ecosystems 37% AmountofEarthʼslandwhereecosystemswill Theprobabilityofsurpassingthe1.5°CwarminglimitsetbytheParisAgreementishighgiventhecurrentemissionstrajectoryandwarmingalreadyexceeding+1.1°C.Mitigatingfurthertemperaturerisemustbeourprimaryfocus,asevery0.1°Cincrementcarriesmajorclimateconsequences.These ExtremeHeat Globalpopulationexposedtosevereheatatleastonceevery5years Flooding Increaseinfloodrisk X2.6 worse 14% 1.5ºC 70% 100% worse 2.0ºC shifttoanewbiome 1.5ºC 7% SpeciesLoss X1.9 worse 2.0ºC 13% includeescalatingextremeheat,risingseas,biodiversitylosses,decliningcropsandfisheries,andheightenedthreatstofoodsecurity. Simultaneously,wemustaccelerateadaptationeffortstoprepareforandmanagetheunavoidableimpactsofawarmerworld.UNFCCC'sSynthesisReportoftheNationally SealevelRise Amountofsealevelriseby2100 6cm worse 1.5ºC 0.40m 1.5ºC 170% 2.0ºC 0.46m 2.0ºC Insects,plantsandvertebratesThatwilllose>halftheirrange 1.5ºC InsectsPlants Vertebrates 2.0ºC Insects Plants Vertebrates DeterminedContributionsundertheParisAgreement1projectspeakwarmingcouldreach2.1-2.8°Cbefore2100. Thisunderscorestheurgentneedforbold,transformativeclimateactionacrossallfronts. X2-3 worse Page/6Source: https://unfccc.int/sites/default/files/resource/cma2023_12.pdfhttps://www.climatecouncil.org.au/resources/impacts-degrees-warming/ https://www.forbes.com/sites/mitsubishiheavyindustries/2022/01/26/the-stark-difference-between-global-warming-of-15c-and-20c/?sh=2b773a12a487 WhatisUrbanTech? Urbantechisatechnologythatimprovesbroadurbanenvironmentstomakethemmoresustainable,resilientandefficient.Althoughgovernmentsandregulationmaybeinvolved,urbantechprimarilytargetstheprivatesector,sellingtobusinessesandconsumersdirectly. WhyUrbanTech? Urbanizationisaccelerating,andfast.By2050itisexpectedthat68%oftheglobalpopulationwillliveincities,upfrom55%today.1Wearenotpreparedfortheadditionalstrainonourinfrastructure,naturalresources,andhousing. Citiesconsume3/4oftheworldʼsfinalenergy2andproduce ~70%ofGHGemissions.3UrbanTechsolutionscanplayamajorroleinreducingemissionsonanacceleratedtimeline,whichiskeytomanagingcurrentgrowth. Buildingeffectivecitiesrequiresinclusive,heal