A new report outlines the “rich opportunities” in transport for venture capitalists.
A report from investment firm Village Capital has suggested cleantech investors should focus more on the transportation sector in the struggle to cut carbon emissions.
The report, called Moving Electrons and co-sponsored by the Autodesk Foundation, points to transport as the single biggest source of carbon dioxide emissions.
It listed five subsectors that could prove particularly attractive to investors: aviation and aerospace, electric vehicles, the sharing economy, mass transit, and trucking and logistics.
In aviation, said the report, growing air traffic, shrinking fares and increasing emissions regulations are putting pressure on fuel costs. This means “there are rich opportunities for startups that operate, manufacture or enhance low-emissions aircraft.”
The electric-vehicle market, meanwhile, presents strong opportunities in lithium-ion battery manufacturing and charging technology. Battery investment topped $641.5 million across 55 deals in 2017, according to the report.
Alongside electric vehicles, Village Capital called out ridesharing as part of a cleantech investment strategy. “The $36 billion global ride-sharing industry is poised for rapid, sustained growth,” it said.