The importance of network when scaling

As our urban centers continue to expand, we face significant challenges related to mobility. European cities “...take up only 4% of the EU’s land area, but they are home to 75% of EU citizens” according to EU Mission: Climate-Neutral and Smart Cities. Startups and entrepreneurs are playing an increasingly vital role in addressing the challenges which continue to emerge from this shift. This role takes many shapes depending on the issue in sight. In general, it can be viewed as an ambition to make urban environments safer, cleaner and ultimately it is a bid to improve the quality of life for residents. 

However, these innovators encounter a variety of hurdles in their journey to help us. In this article we talk with Fredrik Hånell, Impact Ventures Director of EIT Urban Mobility, an initiative of the European Institute of Innovation and Technology (EIT), a body of the European Union, on the challenges which face start-ups, highlighting where and how industry leaders need support in fostering the necessary changes we all need to see in the mobility landscape. 

Barriers to scale: Network, pilots & data and funding 

What remains a significant barrier for startups, especially those in the early-stage and for first-time founders, is the lack of a robust existing network. This limitation amounts to difficulties in scaling effectively given that networks are critical to gaining a foothold within national and international ecosystems; Enabling and fostering partnerships and giving access to vital resources. However, building international networks is time consuming and can detract from other key business areas.  

“Given startups want to introduce something new to the market, either in their business model or technology, with a limited network they face hesitation due to unfamiliarity and as a result lack of trust. Without a foot in the door, via proof of concept, pilots or trials, a startup can find themselves finding dead ends.” said Fredrik Hånell. 

Pilots are not only important for proof of concept, a tool for gathering data, but can act as lead generation. Converting paid pilots into clients is a success indicator for startups. If the benefits of a given solution are proven and pilot outcomes meet pilot objectives, with clear KPIs and milestones, a startup will have demonstrated their validity at which point the client acquisition barrier is lowered. 

Lastly and perpetually, funding remains the most pressing challenge for startups. According to an EIT Urban Mobility survey, 92 percent of scaleups supported by EIT Urban Mobility in 2023 indicate funding as their main need. Attracting investors and managing cashflow while balancing operational commitments is a task not to be envious of. As a founder, navigating the complexities of venture capital and sustainable financial growth without sacrificing ownership is fraught with challenges.  

Scaling across European regions 

EIT Urban Mobility plays a central role in the European Union’s mobility landscape. With an extensive network which connects key ecosystems, leading stakeholders, cities and corporations, EIT Urban Mobility is able to support mobility startups across Europe in many ways. In turn, fostering innovation and growth in the urban mobility space. 

The scope of EIT Urban Mobility’s network is expansive. Hånell explains their network enables startups to added prospects and knowledge in other markets:   

“Through EU wide strategic partnerships EIT Urban Mobility provides startups with the opportunity and expertise to expand beyond their home markets. This network, built over many years, offers a unique ability to support startups as they scale across different regions in Europe. Such a network can assist in both hard launches and soft landings when seeking to expand depending on the individual need.” 

A soft landing in this context refers to including regulatory guidance, local partnerships, and market insights. A good example of this is how startups like Bout and Elonroad have been able to gain traction in France, where EIT Urban Mobility’s connections in the local ecosystem helped both navigate the intricacies of the French market and expand their operations smoothly. 

Using its network, EIT Urban Mobility is able to deliver a number of unique programmes to help startups scale and grow. Entrepreneurs need support along their journey and find that in a number of structured programmes run by EIT Urban Mobility. These programmes can be categorised into three areas: Accelerators, investment readiness and scale-up programmes. These programmes are tailored to the differing stages of a startup’s journey while as a whole making a holistic offering.  

These supports are only possible to deliver through an existing and comprehensive network. This creates tangible benefits for startups including market entry, opportunities to collaborate with cities, refine their product and gives access to investors and potential clients. 

Regarding EIT Urban Mobility’s support, Hugo Furtado, Founder and CEO of Dreamwaves, said: “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, 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.” 

Role of startups in future sustainability 

Implementing solutions which enable positive sustainable impact makes cities more livable, safer and enjoyable for citizens. The ingenuity and creativeness of startups is essential in this pursuit and therefore they must be supported in a multitude of ways.  

A strong and far-reaching network provides the best potential for support and a basis for other services, access to pilots and programmes. It is through such a network that enables EIT Urban Mobility to connect startups with key players in European mobility and vice versa. This gives companies the ability to navigate the many complicated hurdles which naturally arise when seeking to solve mobility challenges. 

If you have a startup and need further information, join the Startups Growth Lab. Here you will find regular webinars regarding support and programmes provided by EIT Urban Mobility in addition to information on external funding opportunities for startups.