European investment firm Eurazeo’s (FRA:EUQ) subsidiary, Idinvest Partners, has completed the first close of its Smart City Fund II. The fund plans to raise a total of EUR 200 million (USD 243.5 million), and to date, has raised EUR 80 million (USD 97.4 million). Up to 40% of the current fund will be allocated to startups in Southeast Asia and China.
As its name suggests, Smart City Fund II is an investment vehicle that focuses on backing innovative companies in sectors where digital technology is transforming urban design – such as property technology, energy, mobility, and logistics. It also aims to connect Chinese and European limited partners to promising startups worldwide with a view to both financial and strategic returns.
Previously, the team behind its predecessor investment vehicle, Smart City Fund I, backed almost 25 companies through Europe, Asia, and North America, such as Spanish delivery company Glovo, US electric vehicle charging network Volta Charging, and Chinese autonomous startup WeRide. Eurazeo currently has at least EUR 18.8 billion (USD 23 billion) in assets under management and has invested in over 430 companies.
At present, Smart City Fund II has attracted contributions from strategic investors in Europe and Asia, including Stellantis (the parent company of automotive brands such as Peugeot, Chrysler, and Fiat), French state-owned public transport operator RATP Group, French energy giants Total and EDF, German energy supplier Mainova, and Thai real estate developer Sansiri. Institutional investors and family offices are said to have participated in this fundraising round as well.
“We are proud of the trust given by our investors. The Smart City Venture strategy aims to select and support the future global leaders in each of their sectors thanks to expertise in our investment themes and a selectivity rate at the level of the best generalist funds,” said Matthieu Bonamy, partner at Idinvest Partners.
“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 78% of the world’s energy and produce more than 60% of the world’s greenhouse gases.”