Architects of smarter cities? How VC and PE are guiding the future of urban ecosystems

Cities mirror their inhabitants.

Just like us, smart cities are leveraging data and digital technology to help solve pervasive problems. From reducing carbon emissions and congestion to creating more affordable housing, companies are working to flip the script with the help of the latest innovations.

Private equity is focused on the physical infrastructure whereas venture capital is capitalizing on technology that can be layered on top. Despite operating in different spheres, both are working together to push cities into the future.

It’s not just about creating better societies though—professionals in the private markets see significant value and opportunity in the space. In fact, more than $149.7 billion of capital has been invested in urban technology over the last 8 years.

At the center of it all are six sectors: Food/restaurant tech, urban mobility, shared spaces, real estate tech, construction tech and smart infrastructure.

Curious about the companies and investors in each sector? Check out our list below. Or, download our Private Market PlayBook that dives deeper into this topic.

Food & restaurant tech

Companies developing technology intended to improve consumer experiences around food selection, aid purchasing and consumption, and help restaurants run more streamlined operations.

Notable companies:

Instacart established itself as an on-demand goods delivery service for local grocery stores. It’s delivery app enables users to shop for grocery items from more than 200 retailers and have them delivered to their door quickly—typically in less than an hour.

Impossible Foods’ plant-based burgers combine natural ingredients like fats, amino acids and vitamins to create raw meat from plants, which delivers the texture and aroma of conventional beef, enabling consumers to access an alternative to conventional meat and dairy products.

Most active investor:

500 Startups is a seed fund and startup accelerator that offers accelerator programs for start-up companies.

Mobility

Companies developing solutions designed to provide more accessible, environmentally friendly, efficient and low-cost transportation options.

Notable companies:

Bird’s platform coordinates with cities to provide citizens with access to shared personal electric vehicles that can be picked up and dropped off anywhere, enabling users to receive sustainable and environment-friendly local transport facility.

Cruise Automation’s automobile technology uses a highway autopilot system that installs on a consumer’s existing vehicle and uses sensors and machine-vision technology, enabling users to get driver-less highway automobile transportation easily.

Most active investor:

Didi Chuxing’s application provides vehicles and taxis for hire and also offers chauffeur services, minibus and ride-sharing services in China, enabling users to request rides through smartphone applications.

Shared spaces

Companies designing, managing and operating co-working and co-living spaces to deliver temporary and low-cost tenant options, as well as provide community-centric environments that foster collaboration and connected living.

Notable companies:

WeWork’s services include office spaces with facilities and services like high-speed internet, printers, free refreshments and private phone booths, enabling startups, entrepreneurs and small businesses to collaborate, share experiences and get inspiration from other members in the community.

Common provides of co-living space intended to promote community-driven housing. The company rents out rooms in furnished and shared apartments on flexible lease terms for a members-only community without any broker fee. This provides students, professionals and married people with basic amenities and simpler living.

Most active investor:

Slow Ventures was founded in 2009 and seeks to invest in the media, consumer goods and services, software, retail and information technology sectors.

Real estate technology

Companies developing and leveraging technology intended to help facilitate the purchase of, management of, maintenance of and investment into both residential and commercial real estate.

Notable companies:

Opendoor is the nation’s fastest-growing online real estate marketplace. Founded in 2014 and currently operating in almost 20 markets, Opendoor has helped more than 25,000 homeowners move on to their next chapter in life by simplifying the way people buy and sell homes. Sellers can receive a competitive offer on their home in 48 hours—skipping the hassle of listing, showings, and months of uncertainty. Buyers can browse for-sale homes, instantly unlock them using the Opendoor app as their key, and tour them any day of the week from 6am to 9pm.

Bowery Valuation’s commercial appraisal writing software and mobile application uses a powerful backend database and natural language generator to take appraising out of dated excel sheets. This increases efficiency, quality and consistency firm-wide, enabling appraisers to produce more consistent reports, faster and at a lower cost.

Most active investor:

500 Startups is a seed fund and startup accelerator that offers accelerator programs for start-up companies.

Construction technology

Companies building hardware and software solutions intended to increase the efficiency and productivity of operations related to construction, building and infrastructure.

Notable companies:

PlanGrid‘s construction application provides real-time updates and seamless file syncing over Wi-Fi and cellular networks, enabling owners and architects to collaborate easily from their mobile devices and desktops. It also allows them to manage blueprints, specs, photos, RFIs and punch lists as well as sharing design plans for construction projects.

3DR’s drones help users in land mapping and site scanning services that collect accurate aerial data of the jobsite, turns the drone photos into maps, models, point clouds and provides comprehensive on-boarding and ongoing support, enabling clients to make better informed decisions related to construction sites.

Most active investor:

Brick & Mortar Ventures is a venture capital firm that prefers to invest in the architecture, engineering, facilities management and construction sectors.

Smart infrastructure

Companies leveraging innovative technology to create or enable improved facilities like roads, buildings and electric grids, as well as more sustainable and efficient systems to better manage traffic, pollution, crime and more.

Notable companies:

Rubicon Global’s sustainable waste and recycling technology and services are offered in a cloud-based enterprise resource technology platform which provides a portal to manage and track waste and recycling across multiple locations. Its website and mobile application connects local waste haulers and recycling businesses to customers who need their services, enabling customers to find a cheaper and efficient way to clean the environment.

Mark43 provides a cloud-based platform for information collection which enables users to create streamlined police reports through one-click technology to share criminal profiles, activity updates and department-operation reports, enabling them to collect quality, error-free data and make it simpler to analyze, export and act.

Most active investor:

Plug and Play Tech Center is a venture capital firm and global accelerator that invests in technology startups of any stage. he firm focuses on companies operating in Insurtech, Internet of Things, Fintech, Brand & Retail, Mobility, Health, and other sectors.