Urban tech

The streets will never forget these startups

Last updated: 26 Sep 2024

Market 101

It may not always seem like it, but cities are growing steadily smarter. Air quality and traffic flow data tell us the cleanest and quickest streets to take. New buildings are being built with environmental ambitions and are covered in sensors to control automated heating and cooling systems. Inside, you’ll find digital hubs for controlling lights, doors, lifts and cameras.

Where are these smart cities? All but three in the global top 20 are in Europe or Asia, according to the 2024 Smart Cities Index. This ranking has Zurich top, followed by Oslo. Among the other top European cities listed, Geneva is fourth; Copenhagen sixth; then there’s Lausanne, London and Helsinki.

Being a smart city these days means making a serious effort to become greener — and it’s startups selling various environmental upgrades that are seeing the most action with investors recently. Berlin’s renewable energy home upgrade company Cloover’s €105m seed round is the largest early-stage “urban tech” deal so far in 2024. Location-wise, urban tech-focused startups in Sweden have absorbed the most VC money this year (€365m), the standout being Stockholm-based heat pump startup Aira’s €145m Series B.

Cities are rushing to invest in green upgrades, partly because they’re disproportionately warmer places to live than more rural areas — and the mercury’s rising every year as climate change effects become more obvious. The so-called “urban heat island effect” — caused by vehicles stuck in traffic and, air conditioners pumping heat into the air, while concrete and asphalt across almost every surface soak up heat from the sun — is a big challenge to tackle.

Being a smart city also means having lots of sensors and cameras to track and measure various metrics to help improve livability in urban places but this, inevitably, raises serious questions about privacy. Gathering and storing huge amounts of personal data is controversial and AI tools can now harvest CCTV footage in ways that some may find alarming.

During the Paris Olympics this summer, for example, cameras around the city watched millions of visitors to detect weapons (the law permitting this sort of tech is temporary and lapses next spring).
As cities become smarter, they’ll also inevitably become more complex to manage, with all sorts of unpredictable vulnerabilities to threats like data breaches and hacks. Local governments are not exactly over-supplied with the tech, data-science and machine-learning experts needed to run these places either.

Early stage market map

Key facts

7

of the world’s top 10 smartest cities are in Europe1

800m

CCTV cameras in the world — more than half are in China2

€105m

is the largest seed deal of 2024 so far (for Cloover)

Startups tracked by Sifted

Sifted take

Cities around the world used to race to declare themselves “smart” — now many would settle for being a bit greener and more climate resilient. Protecting urban areas from floods is moving to the top of every city planner’s agenda; so too is the push to make buildings cooler, with the mercury now regularly nudging 40C and above in cities during summer.

Rising stars

Kelvin

Building development & renovations

Total funding

€5m

Paris, France
2023

Backed by the likes of Kima Ventures and Motier Ventures, Kelvin is an efficiency software tool for renovation projects.

Round

Seed

Valuation

Undisclosed


Date

2024

Size

€5,000,000

SolarMente

Alternative energy sources

Total funding

€26.9m

Barcelona, Spain
2019

Last backed by Leonardo DiCaprio, SolarMente offers a subscription model for solar energy, helping customers spread the cost of the initial investment of panel installation.

Round

Angel

Valuation

Undisclosed


Date

2024

Size

€1.9m

Axle Energy

Smart energy systems

Total funding

€9.6m

London, United Kingdom
2023

Cofounded by Karl Back, formerly Head of Growth at now-bankrupt energy company Bulb, Axle is working on an API that connects energy assets, including EVs, heat pumps and batteries, to electricity markets.

Round

Seed

Valuation

Undisclosed


Date

2024

Size

€8.1m

Rabot Charge

Smart energy systems

Total funding

€22m

Hamburg, Germany
2021

Last backed by High-Tech Gründerfonds, HV Capital, Yabeo Capital, Acurio Venturesvent.io, and 9900 Capital in a €17.5m seed round, Rabot Charge is a dynamic electricity tariff provider.

Round

Seed

Valuation

Undisclosed


Date

2024

Size

€17.5m

Early stage startups to watch

011h

Barcelona, Spain
2020
Series A

33m

25m

-

42watt

Munich, Germany
2021
Seed

8.3m

3.6m

-

Airly sp. z o.o.

Kraków, Poland
2016
Series A

10.4m

5m

-

Alpinov X

Veurey-Voroize, France
2017
Early VC

14.8m

11m

-

arbnco

Glasgow, United Kingdom
2017
Early VC

10.1m

6m

-

autarc

Berlin, Germany
2023
Pre-seed

1.5m

500k

-

AviBike Kft.

Budapest, Hungary
2019
Pre-seed

800k

530k

-

Axle Energy

London, United Kingdom
2023
Seed

9.6m

8.2m

-

Bable

Berlin, Germany
2017
Early VC

9.1m

3.4m

-

Bandora

Porto, Portugal
2017
Early VC

1.9m

1.5m

-

Beem energy

Nantes, France
2018
Series A

29m

20m

-

Bisly

Tallinn, Estonia
2018
Series A

11.5m

6.2m

-

Blue Heart Energy

Alkmaar, Netherlands
2016
Grant

2.5m

2.5m

-

Caeli Energie

Grenoble, France
2020
Early VC

7.1m

5m

-

CHAOS

Helsinki, Finland
2017
Seed

2m

1.5m

-

CitySwift

Galway, Ireland
2016
Early VC

15.5m

7m

-

CityZ

Turin, Italy
2021
Seed

580k

580k

-

Clevergy

Madrid, Spain
2021
Seed

2.5m

1.5m

-

Cogo

Copenhagen, Denmark
2020
Early VC

1.8m

-

-

CYCLE

Berlin, Germany
2018
Series A

20.8m

10.3m

-

Dedomena

Basel, Switzerland
2020
Seed

210k

210k

-

Deep Green

London, United Kingdom
2021
Growth Equity VC

240m

240m

-

DeNoize

Delft, Netherlands
2018
Seed

1.2m

1m

-

Digital Spine

Berlin, Germany
2020
Early VC

-

-

-

Dnergy

Brussels, Belgium
2019
Early VC

9.5m

8m

-

DynamicAirCooling (DAC)

Elbląg, Poland
2019
Early VC

2.5m

-

-

EcoPlanet Green Operations GmbH (ecoplanet)

München, Germany
2022
Seed

6.1m

3.5m

-

Ecoworks

Berlin, Germany
2018
Early VC

79.6m

40m

-

Enter

Berlin, Germany
2020
Series A

19.4m

19.4m

-

FF Furbnow

Birmingham, United Kingdom
2022
Pre-seed

869k

870k

-

Fixi Solutions AB

Stockholm, Sweden
2020
Seed

1.8m

330k

-

Flash Park

Barcelona, Spain
2020
Support Program

-

-

-

Fuchs & Eule

Hoppegarten, Germany
2020
Series A

-

-

-

Geodesic.Life

Kyiv, Ukraine
2020
Grant

75k

25k

-

Geosophy

Malakoff, France
2018
Series A

2.5m

2m

-

Green Fusion

Hohen Neuendorf, Germany
2021
Seed

2.9m

2.7m

-

Grid Edge

Birmingham, United Kingdom
2016
Grant

3.7m

670k

-

Heaten

Kristiansand, Norway
2020
Series A

11.3m

6m

-

Heatio

Liverpool, United Kingdom
2022
Seed

4.5m

2.4m

-

HeatTransformers

Woerden, Netherlands
2018
Series A

15m

15m

-

HOLD Buildings

Almelo, Netherlands
2022
Seed

210k

110k

-

hubbster inc

Brooklyn, USA
2019
Seed

3.1m

2.9m

-

InBiot Monitoring

Aranguren, Spain
2018
Seed

700k

500k

-

JUUNOO

Zwevegem, Belgium
2017
Series A

10.3m

5.8m

-

Kaluza

London, United Kingdom
2019
Late VC

90.9m

90.9m

-

Kelvin

Paris, France
2023
Seed

5m

5m

-

Kelvin Green

Berlin, Germany
2022
Seed

-

-

-

Kumux

Barcelona, Spain
2019
Early VC

600k

-

-

LichtWART

Herford, Germany
2020
Early VC

-

-

-

Loewi

Saint-Cloud, France
2021
Seed

1m

1m

-

Luna Systems

Dublin, Ireland
2020
Seed

1.8m

830k

-

Lynus

Zurich, Switzerland
2020
Early VC

250k

-

-

Magneto

Delft, Netherlands
2020
Grant

3.5m

2.5m

-

MAGNOTHERM Solutions GmbH

Darmstadt, Germany
2019
Seed

11.9m

6.8m

-

Marcley

Hanover, Germany
2022
Seed

5.1m

5m

-

measurable.energy

Reading, UK
2018
Series A

5.4m

5.4m

-

Mob-Energy

Villeurbanne, France
2018
Series A

12.1m

10m

-

Monumental

Amsterdam, Netherlands
2021
Series A

22.7m

22.7m

-

Myrspoven

Stockholms kommun, Sweden
2017
Early VC

12.4m

5.4m

-

Natix Network

Hamburg, Germany
2020
Early VC

7.5m

4.2m

-

Niche Mobility

Figueres, Spain
2021
Seed

440k

440k

-

node.energy

Frankfurt, Germany
2016
Series A

8.6m

7m

-

Optimise AI

Cardiff, United Kingdom
2023
Seed

890k

890k

-

Over Easy Solar

Oslo, Norway
2021
Early VC

3.4m

1m

-

ParkingAid

Stockholms kommun, Sweden
2022
Angel

90k

90k

-

Perfecta Energía

Madrid, Spain
2019
Early VC

3.5m

-

-

PESS (PILLOT ENERGY STORAGE SOLUTIONS)

Marseille, France
2021
Series A

2m

2m

-

Photoncycle

Oslo, Norway
2020
Early VC

8m

5m

-

Plant

Stockholms kommun, Sweden
2017
Seed

3.4m

2.2m

-

Polyteia

Berlin, Germany
2018
Seed

5m

5m

-

Predium

Munich, Germany
2022
Seed

6.1m

4.5m

-

PureNat

Anglet, France
2020
Support Program

1.1m

-

-

PYDRO

Rostock, Germany
2016
Seed

3m

1m

-

Qualis Flow

London, United Kingdom
2018
Series A

11.3m

8.6m

-

Quixotic 360

Aranjuez, Spain
2021
Seed

250k

250k

-

R8 Technologies

Oslo, Norway
2017
Early VC

2.3m

-

-

RABOT CHARGE

Hamburg, Germany
2021
Seed

22m

17.5m

-

Reonic

Augsburg, Germany
2021
Series A

13m

13m

-

Sensor Innovation

Verdal, Norway
2018
Seed

1.1m

1.1m

-

Sensosan

Rome, Italy
2020
Debt

700k

135k

-

Sitigrid

London, United Kingdom
2019
Angel

150k

900k

-

SolarMente

Barcelona, Spain
2019
Angel

26.9m

1.9m

-

Soletair Power

Lappeenranta, Finland
2016
Early VC

2.5m

1m

-

Squad Mobility

Breda, Netherlands
2019
Grant

1.4m

1.4m

-

Sunday Power

Oslo, Norway
2021
Seed

6m

5m

-

Sunology

Saint-Herblain, France
2019
Series A

10m

10m

-

Tepeo

Maidenhead, United Kingdom
2018
Series A

16.4m

12.6m

-

Urban Canopee

Noisy-le-Grand, France
2016
Early VC

4.4m

2.7m

-

Urban Radar

Reims, France
2018
Early VC

750k

750k

-

Utilifeed

Göteborgs Stad, Sweden
2016
Early VC

2.3m

2.3m

-

Utopi

Bothwell, United Kingdom
2019
Early VC

6m

6m

-

vialytics GmbH

Stuttgart, Germany
2018
Series A

9m

9m

-

vilisto

Hamburg, Germany
2016
Series A

6m

5m

-

Vitesy

Pordenone, Italy
2016
Series A

14m

4m

-

Vizcab

Lyon, France
2020
Series A

12.3m

4.5m

-

volytica diagnostics

Dresden, Germany
2019
Early VC

7.3m

5.5m

-

Windcredible

Lisbon, Portugal
2022
Pre-seed

300k

200k

-

Woltair

Prague, Czech Republic
2018
Series A

37.8m

20.5m

-

Zentur.io

Landshut, Germany
2021
Seed

1m

1m

-

Europe’s success stories

Who early stage startups are up against

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

Hamburg-based climate tech company 1KOMMA5° has built a marketplace for homeowners to buy and install carbon-neutral energy systems like solar panels and heat pumps, as well as providing the software to optimise consumption and bring down energy bills. The company’s founders say they’re eyeing a 2025 IPO.

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

French company Forsee Power designs electricity storage equipment and IPO-ed in 2021.

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

It’s a little contentious to call Stegra — until recently known as H2 Green Steel — a success story before it has fully demonstrated its technology. But the company has now raised colossal sums — €2.2bn in equity and €4.3bn in debt. The money will build the world’s first large-scale green steel project.

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