Global investment firm Eurazeo has announced that it has raised $97 million in the first close for its Smart City II Fund. The fund will be used to invest in promising global startups in the energy, mobility, proptech, and logistics industries. The firm plans to allocate 40 percent of the fund towards startups in Southeast Asia and China.

Eurazeo is a global investment firm with a portfolio amounting to $23 billion in assets under management and $16 billion from third parties. The firm has backed more than 430 companies worldwide. The global investment firm’s headquarters is in Paris, France and has offices in New York, Sao Paulo, Seoul, Shanghai, Singapore, London, Luxembourg, Berlin, and Madrid.

Investors of the Smart City II fundraising round include a variety of European and Asian partners such as carmaker Stellantis, electric utilities EDF and Mainova, public transportation operator RATP, energy major Total, logistics champion Duisport and Thai real estate developer Sansiri. Institutional investors such as PRO BTP and family offices also took part in the round.

The Smart City venture fund is currently being used to invest in companies that are supporting the rapid digital migration of users for the benefit of their residents. These include companies working on solutions for work-from-home, shared mobility, electric mobility, food delivery and the renewable energy transition. The pandemic has forced users from countries all over the world to migrate to a digital platform in order to adhere with the safety guidelines imposed by their respective governments.

The Smart City I venture fund has already backed nearly 25 different companies across Europe, Asia, and North America. Some of these companies include Spanish logistics app Glovo, American electric vehicle charging network leader Volta Charging, and Chinese AI mobility company WeRide.

The new fund will continue to invest in companies seeking to address the global challenges brought about by the global public health crisis. The fund will mainly look at investing in energy, mobility, proptech, and logistics industries from around the world. It has also been announced that 40 percent of the US$ 97 million fund will be used to invest in startups in Southeast Asia and China.

Matthieu Bonamy, Partner at Idinvest Partners, a subsidiary of Eurazeo, said, “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 an expertise in our investments themes and a selectivity rate at the level of the best generalist funds. 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 percent of the world’s energy and produce more than 60 percent of the world’s greenhouse gases.”

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