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Q3 2023
Emerging Sustainable Investing Opportunities: Transit Tech
September 22, 2023
Transit tech as a sustainable investing opportunity
To boost public transit ridership numbers, governments are increasingly turning to transit tech to improve access to mass transportation and the experience itself. Since 2013, 61 VC-backed companies have entered the transit tech space, which includes digital dispatch apps and digital planning, scheduling, and route optimization software, with $5.3 billion in investment.
In our latest Emerging Sustainable Investing Opportunities analyst note, we identify factors that could make transit tech more attractive to VCs in coming years, including financial returns underpinned by government support and a growing and sticky end-user base. Transit tech has the potential to create positive social and environmental Impact in terms of human health and economic mobility as well as mitigation of climate change, pollution, and ecosystem harm.
Table of contents
To boost public transit ridership numbers, governments are increasingly turning to transit tech to improve access to mass transportation and the experience itself. Since 2013, 61 VC-backed companies have entered the transit tech space, which includes digital dispatch apps and digital planning, scheduling, and route optimization software, with $5.3 billion in investment.
In our latest Emerging Sustainable Investing Opportunities analyst note, we identify factors that could make transit tech more attractive to VCs in coming years, including financial returns underpinned by government support and a growing and sticky end-user base. Transit tech has the potential to create positive social and environmental Impact in terms of human health and economic mobility as well as mitigation of climate change, pollution, and ecosystem harm.
Table of contents
| Key takeaways | 1 |
| Introduction | 2 |
| Financial return potential | 3 |
| Environmental and social impact potential | 5 |