Investing in impact: barriers to scale

According to the EU Mission: Climate-Neutral and Smart Cities, European cities “...take up only 4% of the EU’s land area, but they are home to 75% of EU citizens.” As Europe’s urban centres continue to grow, concentrating populations, we collectively face significant challenges relating to how we live and move.?

Startups and entrepreneurs are playing an increasingly vital role in addressing these challenges, striving to make urban environments safer, cleaner and to ultimately improve quality of life for residents.?

However, innovators encounter a variety of hurdles in their journey to develop and scale solutions. In this article we will examine some of the key barriers startups face and highlight areas where industry leaders can support to foster the necessary change the mobility landscape needs.?

Lack of network?

For early-stage startups, and especially first-time founders, a robust network is a necessary foundation for success. A well-connected network is essential as it provides access to funding, mentorship, partnerships and customers. Access to a network opens the door to relationships with investors, increasing funding opportunities; while mentors can offer guidance to avoid costly mistakes. Strategic partnerships help startups scale faster by providing resources, distribution channels or expertise. A strong network accelerates growth, enhances credibility and helps startups navigate challenges more effectively.??

However, with limited time and a lean team, the resources necessary to build such a network can detract from key business areas. Recognising this challenge for startups, EIT Urban Mobility collaborates with seven strategic partners across Europe, each serving as a hub for startup innovation and knowledge, with local and regional expertise. These hubs act as vital gateways and knowledge pathways for startups, helping them accelerate their growth and ensuring Europe remains competitive on the global stage.?

Absence of pilots and data?

Pilots are an important tool for proof of concepts, data collection, lead generation and client acquisition. Client acquisition is vital for startups because it fuels growth, builds credibility, and drives sought-after revenue. Without a strong customer base, even the most innovative companies can struggle.??

After participating EIT Urban Mobility’s RAPTOR call and receiving funding as part of the investment portfolio, Hugo Furtado, Founder and CEO of Dreamwaves, also notes the importance of pilots in refining your product: “Projects connecting us with large public entities are especially important and the results are extremely valuable. For one funding programme we had a successful pilot with Wiener Linien, Vienna's public transport operator, to implement indoor navigation for blind and visually impaired people. The funding helped us develop the technology further, [to create] the full user interface and demonstrate the product effectively. After the programme ended, we had a product which was ready to go to market. This is the foundation of our commercial offer today.”?

Converting paid pilots into long-term clients is a key indicator of success for startups. When a solution proves its benefits and pilot outcomes meet objectives, the startup gains credibility, lowering the barriers to wider adoption.??

Funding: difficulties in access?

Securing funding is a significant challenge for all kings of startups. Many startups struggle with a lack of traction, as investors seek validated business models with proven revenue or a strong user base. Additionally, competition with other compelling startups is strong, and startups without a robust network may struggle to reach suitable investors.??

Economic downturns or market instability further heighten investor risk aversion, particularly for ventures with a new product, lack of historical data, or definitive client base. These factors only add to investor hesitation, especially when it concerns profitability over the long-term.?

Overcoming these barriers requires a strong network that can connect startups with investors, increasing credibility and access to funding opportunities. Warm introductions from trusted sources can significantly improve investor confidence, while pilot programmes and solid data provide tangible proof of concept, reducing perceived risk. Demonstrating real-world traction through customer adoption, partnerships or proven revenue strengthens investor interest. Startups that leverage industry connections and showcase validated metrics stand out, making it easier to secure funding on favourable terms.?

The vital role of startups moving forward?

Innovative solutions that drive sustainable impact makes cities more liveable, safer and more enjoyable for citizens. The ingenuity and creativity of startups is essential in this pursuit, but they require support to develop and scale their solutions.??

A strong and far-reaching network not only provides the best potential for support but also serves as a basis for other services, such as access to pilots and mentorship programmes. With a well-connected network across Europe, EIT Urban Mobility enables startups to connect key players in sustainable urban mobility, and vice versa. This network equips companies with the skills to navigate complex challenges and accelerate their impact.??

If you are a startup and want further information on how EIT Urban Mobility can support you in your journey, join the Startups Growth Lab: regular webinars on funding, programme opportunities and more are waiting for you!