GoingVC Investment Thesis

Authored by Faisal AlBreiki

About This Thesis

The way humans and goods move has been relatively constant for decades following the advent of the internal combustion engine. This is set to change driven by factors such as the rapid evolution of technology and large-scale demographic shifts. A basic two-sided equation is helpful here in framing where we stand today and what the future might hold. 

  1. Supply: New innovations marching on introducing creative solutions to move humans and goods within a changing urban landscape.
  2. Demand: Changing needs of an urban population driven by convenience and functionality with large influence stemming from city urban planning decisions.

There are two critical data points to keep track of as we study the evolution of urban mobility: 

  1. Urban population growth: According to the World Bank, the percentage of total  population living in urban environments grew from 46.7% in 2000 to 55.3% in 2018.
  2. Reduction of poverty: September 2018 marked a global tipping point where just over 50% of the world’s population is now considered either middle class or wealthier.

It is no surprise that there has also been a corresponding exponential increase in mobility investments globally. A staggering $220 billion has been invested in the space since 2010, including $120 billion in the last 24 months only. The top 3 destinations for these investment dollars have been the US ($84.5 billion), China ($50.6 billion) and the UK ($34.1 billion)3. As with technology generally, investors in the space today are emphasizing margin sustainability and positive unit economics. Balancing technical and market risk will continue to be a challenge.

Discover the investment opportunities in the three major verticals:

  1. Mainstream Passenger Vehicles
  2. Logistics
  3. Micromobility