Global investment firm Eurazeo has raised an additional €70m for its Eurazeo Smart City II Venture, taking the smart city fund’s total capital raised at second close to €150m

Eurazeo said the fund, which raised an initial €80m last year, received capital commitments from new institutional and corporate partners in Europe and Asia.

The manager said the second close was backed by investors including the European Investment Fund, the Korean Venture Investment Corporation, Momentum Venture Capital, SCG and SWK the German electric utility.

The first close was backed by investors including carmaker Stellantis, electric utilities EDF and Mainova, mass transit operator RATP, energy major Total, logistics firm Duisport and Thai real estate developer Sansiri as well as institutional investors PRO BTP and family offices.

Eurazeo said, Smart City II – which has started to invest – will invest in the most critical sectors to transition towards a low-carbon economy worldwide: energy, mobility, logistics, buildings and industrial tech.

Matthieu Bonamy, partner at Eurazeo, said: “Cities play a huge role in climate change as they consume 78% of the world’s energy and produce over 60% of the world’s greenhouse gases.

“We think ambitious entrepreneurs and digital technologies can be part of the solution to transition towards more livable and sustainable cities.”

Alain Godard, CEO of the European Investment Fund, said: “Smart Cities significantly contribute to reducing pollution, waste, energy and water consumption, whilst inducing positive change in urban and consumer behaviours.”

“We are pleased that EIF can support the Eurazeo Smart City Fund II which prioritises new technologies, making cities more sustainable and liveable.”

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