industry spotlight
Micromobility
Tap into the dynamic micromobility industry, where e-vehicles powered by cutting-edge tech transform city travel.
Unlocking urban mobility
The micromobility industry is zooming ahead. With $66.4 billion secured in 2023 alone, driven by urban growth, environmental awareness, and soaring car ownership costs, the sector has all the investor’s attention. Projections of continued market growth attract a flood of VCs, propelling the industry toward a future filled with convenient and sustainable transportation options.
Why it matters:
Micromobility companies get plenty of opportunities to capitalize on:
- MaaS
- IoT integration
- Maintenance & repair services
- Charging infrastructure
Between the lines:
Remember that opportunities often arise from overcoming obstacles. Be ready to compete with established players, manage complex regulations and high operational costs, and validate your unique value proposition.
We’ve assisted multiple micromobility startups and know how to build successful businesses that grab investor attention
What we do:
We streamline fundraising, handle M&A transactions, and conduct robust go-to-market strategies and compelling pitch decks.
Go deeper:
Check our micromobility market research to learn more about the current situation in the market and what it takes to attract funding.
3x growth
The global micromobility sector is projected to triple in size by 2032.
85%
Micromobility users find it convenient and easy to use.
5/10
Consumers would prefer micromobility options over private vehicles.
157M
Shared micromobility trips were taken across North America in 2022.
60%
Major cities worldwide plan to introduce micromobility lanes for safer travel.
Micromobility Industry Trends 2024
Check out the current trends in micromobility:
AI and IoT integration: finding better routes, sharing real-time location, suggesting personalized options, and making fleet management more efficient.
Focus on inclusive micromobility vehicles: for older adults and individuals with varying mobility levels.
Integration with public transport: creating seamless transitions between buses, trains, and scooters/bikes.
Micromobility in rural areas: larger e-vehicles with longer range and pedal-assisted bicycles for leisure riding.
Why it matters: with insights into micromobility trends, you can adapt to market changes, refine your GTM plan, and ensure the long-term viability of your business.
VENTURE LANDSCAPE
In 2023, micromobility startups secured $740M in funding
With major deals covered in:
- Microcars
- Sustainable materials
- Data and telematics
- LTD solutions
Micromoblity industry challenges
Here are the main issues that micromobility companies need to tackle.
Regulatory and legal hurdles:
Many micromobility startups run into regulatory issues. Helmets, speed limits, and permits are just a few that startups must overcome.
Why it matters
If you don’t comply with regulations, it may lead to:
- Significant delays
- Fines
- Product recalls
What it takes:
- Onboard experts with regulatory authorities
- Engage with the regulatory bodies to streamline the approval process
- Emphasize transparency with regulators, customers, and other stakeholders
Market saturation:
The micromobility market is highly saturated, with hundreds of startups and established players vying for investors’ attention. Additionally, some cities have too many vehicles, which causes operational challenges.
Why it matters
Difficulties with differentiation in saturated markets may cause:
- Hindered innovation
- Increased operational costs
- Customers frustration
- Regulatory scrutiny
What it takes:
- Focus on niche markets
- Offer unique features like integration with existing transportation
- Collaborate with established players
Fundraising race:
The high fleet management cost and fierce competition in the micromobility space make fundraising a major hurdle for startups, limiting their ability to scale and compete.
Why it matters:
Lack of proper financing makes it hard for startups to:
- Launch new products
- Scale
- Onboard new staff
- Gain a competitive edge.
What it takes:
- Craft a robust business plan
- Demonstrate traction and metrics
- Create a pitch deck with a compelling investment narrative
- Network with the right investors
Safety concerns:
Inexperienced riders, poor infrastructure, and fast-wearing vehicle parts contribute to safety risks and strain startup resources.
Why it matters:
Difficulties to maintain safety strategy may cause:
- Hindered growth
- Hefty fines
- Damaged brand reputation
What it takes:
- Partner with safety organizations to educate users on safe riding practices and traffic regulations
- Implement features like speed limiters, better brakes, and improved lighting
- Advocate for dedicated bike lanes and separated spaces for micromobility vehicles
FAQs
What is the future of micromobility?
With the global micromobility market projected to reach $199.5 billion by 2032, we’ll see the rise of vehicles with extended battery life, smarter design, eco-friendly practices like battery recycling, and improved connections with public transportation.
What are some noteworthy examples of micromobility services?
In addition to Bird and Lime, some of the most recognizable names in micromobility are Spin and Voi, which disrupt the sector with e-scooters and bikes for convenient short trips.
How attractive is the industry to potential micromobility investors?
It is a highly attractive sector. Driven by increasing urbanization, regulatory support, and tech advancement, micromobility will become a key player in future sustainable urban transportation, which creates a win-win strategy for investors, business owners, and the environment overall.
If you are a micromobility startup, how easy is it to raise funds today?
Market saturation and economic concerns make investors more selective, that’s why raising funds is not easy nowadays. Still, strong businesses with a clear path to profitability have a chance to secure funding.
How long does it take to create a pitch deck and financial model for a micromobility startup?
Normally, it takes our team about 2-3 weeks to complete all necessary documents. But in some cases, it could take up to a month. Get in touch for further details.
What are the key mistakes in pitch decks in micromobility startups?
Many decks miss essential data to showcase a clear market positioning. They also need a persuasive investment story. If you don’t find a unique angle of how to present your solution effectively, you lose chances to fundraise successfully. One more flaw is not mentioning competitors. If you don’t know your competitors, you don’t know the market well enough.
How competitive is the micromobility market?
The competition is fierce. As of 2024, 785 startups are vying for attention alongside established giants like Lime and Bird, which makes it challenging for new ventures to secure funding.
What services do you provide for investors looking to invest or already investing in the micromobility sector?
We help investment funds evaluate micromobility projects through comprehensive due diligence, ensuring they back profitable initiatives. Additionally, we roll out full-fledged fundraising support for our partner fund’s associated companies.
Do you provide micromobility startup M&A support?
Yes, of course! Our experts help pinpoint the most beneficial M&A options, create compelling CIMs, and perform modeling for buy-side and sell-side deals.
Do you make intros to micromobility startup VCs?
We connect you with relevant micromobility VCs, evaluate the funding round size, team, and product, and support your collaboration with investors from start to long-term partnerships.
Do you have data or micromobility consumer research available to purchase?
Certainly! Our specialists deliver customized insights into the dynamic micromobility sector. Our in-depth research encompasses a thorough analysis of the industry landscape, competitive evaluations, and a broad market perspective. We leverage reliable data sources to help you recognize promising opportunities and potential challenges and identify current investment trends.
Which growth stage of companies have you worked with in the past?
We support micromobility startups from Pre-Seed to Series C+ stages, offering growth and fundraising assistance.
Industries we work with
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