The Weekly Deal CW16/24 - SWITCH
The Weekly Deal CW16/24 - SWITCH
One startup, once a week. Switch is revolutionizing urban mobility with AI, optimizing fleet management and urban planning for mobility and logistics sectors.
#mobility #smartcity #AI
🥜 In a nutshell
Company: Switch
Industry: Mobility
Sub-Industry: Logistics, Smart City, Mobility as a Service
Year Founded: 2020
HQ: Rome, Italy
Stage: Pre-Seed
Founders: Matteo Forte, Nunzio Gianfelice
Funding Amount: €225K
Main Investors: MobilityUP, Berkeley Skydeck Europe
In a sentence: SWITCH - Street WITCHer, an Italian AI-powered platform set to transform urban mobility and logistics by predicting demand, optimizing fleet distribution, and simplifying operations with unprecedented accuracy and efficiency.
🔭 The Context
Urbanization has intensified the challenges of traffic congestion and inefficient mobility systems in cities worldwide, necessitating innovative solutions to alleviate these issues.
Traditional approaches to urban mobility management often struggle to adapt to the dynamic nature of urban environments, leading to frustrations among residents and businesses alike. Inefficiencies in parking management, route planning, and transportation services continue to hinder urban mobility, resulting in wasted time, increased emissions, and economic losses.
While some cities have attempted to tackle these problems through various measures such as parking restrictions or public transportation incentives, these efforts often lack the precision and adaptability required to truly optimize urban mobility. As a result, urban areas continue to grapple with traffic congestion, wasted time and resources, and environmental degradation.
💡Switch Value Proposition
In this context, SWITCH - Street WITCHer emerges, offering a transformative solution to urban mobility challenges.
By leveraging advanced technologies like artificial intelligence and machine learning, SWITCH aims to revolutionize the way cities analyze traffic flows and optimize transportation systems.
With its innovative platform, SWITCH seeks to empower mobility providers with real-time insights and predictive analytics, enabling them to make informed decisions and streamline urban mobility for residents and visitors alike.
Switch’s Solution in Practice
At the core of SWITCH's solution is its sophisticated AI-powered platform, equipped with proprietary technologies such as "PULSE-AI" and "OPTIMESH". These advanced algorithms enable SWITCH to analyze vast amounts of data, including traffic patterns, weather conditions, and local events, to generate accurate mobility forecasts and optimize transportation routes in real-time.
PULSE-AI, SWITCH's proprietary Generative AI engine, utilizes machine learning algorithms to predict mobility demand, identify traffic hotspots, and optimize fleet distribution. By continuously learning from historical data and real-world inputs, PULSE-AI ensures that mobility providers can efficiently allocate resources, minimize congestion, and improve service reliability.
Complementing PULSE-AI is OPTIMESH, SWITCH's unique prioritization and routing algorithm.
OPTIMESH dynamically adjusts transportation routes based on changing demand patterns, traffic conditions, and environmental factors, ensuring optimal fleet deployment and efficient navigation for drivers. Moreover, OPTIMESH enables real-time tracking and compliance monitoring, allowing mobility providers to maintain operational transparency and regulatory compliance.
Through its advanced data visualization tools and intuitive user interface, SWITCH empowers mobility providers, logistics companies, and local governments to gain actionable insights, optimize resource allocation, and enhance the overall efficiency of urban transportation networks.
By revolutionizing urban mobility management, SWITCH is driving positive change, fostering sustainable urban development, and improving the quality of life for residents in cities worldwide.
🔍 Some Info
📈 Market Size → SOM €1B
By the end of this year, a projected 40 million shared mobility vehicles will be operational worldwide, which has only continued to grow over time. Considering SWITCH’s revenue model, this market represents an opportunity of over €1B of potential annual revenue.
👨🏻🔬 Technology & IP → 2 proprietary technologies
SWITCH proudly owns and continuously innovates with two proprietary technologies: PULSE-AI and Optimesh. With the upcoming fundraising round, they will strategically leverage their intellectual property not just to enhance their current market offerings but also to expand into new domains.
🛒 Business Model → SaaS B2B
SWITCH uses a SaaS model, charging mobility clients a monthly, per-vehicle fee which provides access to advanced analytics for demand prediction, scenario planning, and operational optimization.
🤝 Team → 4 full-time
The team includes Matteo Forte (CEO), Nunzio Gianfelice (CTO), Alessandro Ciociola (Chief Data Scientist), and Eugenio Doglione (Chief Customer Officer). Matteo is a serial entrepreneur with previous CEO experience, Nunzio has various startup roles, Alessandro specializes in data science, and Eugenio's expertise lies in geotechnical engineering and customer relations.
💰 Financials → €90K of revenue in 2023. Upcoming €450K round of investment
Generated €90K of revenue in 2023, from PoCs and custom SW development.
Raised 60% in commitments on upcoming €450K round of investment.
🥊 Competitors → Zoba, Lanterne
Solutions built internally by mobility companies
Zoba (acquired)
Lanterne
❓Q&A with the Team
We had the chance to ask some questions to Eugenio Doglione, Chief Customer Officer at SWITCH.
1. Why are you the best team to build this?
Our team brings together a unique blend of expertise in AI, data analytics, urban planning, and mobility solutions. We combine deep industry knowledge with technical expertise and a passionate commitment to solving complex urban mobility challenges. Our backgrounds enable us to understand the nuances of city dynamics and the needs of mobility service providers and city administrators. We're not just technologists; we're problem-solvers dedicated to making urban transportation more efficient, accessible, and sustainable for everyone.
2. What progress has been made?
We've made real progress at SWITCH. Our platform currently has proven able to manage over 13,000 vehicles in more than ten cities through trials and Proof of Concepts (PoCs), which demonstrates our capability to handle large-scale operations and adapt to different urban environments. We've been part of some key accelerator programs like Berkeley Skydeck Europe, Magic Spectrum, and EIT Urban Mobility’s E+ Mobility program. These experiences have not only endorsed our mission but have also equipped us with the resources and connections we need to grow. On the financial front, we’ve already generated €90K in revenue in 2023 through our PoCs and custom software development. This early income signals that there's a real demand for what we offer and that our solutions are valuable to our clients.
In short, our achievements include scaling operations, gaining industry recognition, generating significant revenue, and winning investor confidence. We're well on our way to transforming urban mobility, and we're just getting started.
3. What is your fundraising situation?
We have already successfully raised more than €200K from notable early supporters such as MobilityUP and Berkeley Skydeck Europe. Their backing not only provided us with crucial initial funding but also validated our approach and potential in the urban mobility sector.
We're currently in an exciting phase of our fundraising journey, working to close a round with a current open investment round of €450K. We've already secured 60% of this new target from Magic Spectrum and technology partners, demonstrating strong investor belief in our mission, the potential of our technology, and our team's capability.
The capital we're raising now will be fundamental for amplifying our marketing and sales efforts, scaling our operations, advancing our product development, and expanding our talented team. This phase of investment will bring us into our next stage of growth, enabling us to enhance our technological offerings and extend our market presence.
We are seeking investors who align with our vision of reimagining urban mobility, bringing not just financial support but also valuable industry insights, strategic connections, and operational expertise to accelerate our journey.
3. What are your next steps?
Other than finalizing our current investment round to secure the capital we need, our immediate focus includes:
Marketing and Sales Push: Increasing our visibility through strategic marketing efforts and strengthening our sales strategy.
Converting PoCs and Trials: Working diligently to turn our current Proof of Concepts (PoCs) and trials into recurring revenue streams.
Product Enhancement: Improving our platform with new features and better analytics for more impactful user experiences.
Forming Strategic Partnerships: Collaborating with mobility stakeholders to refine our offerings and expand our impact.
Team Expansion: Hiring in key areas like data science, development, and sales to enhance our capabilities and reach.
Many thanks to Eugenio for the interesting conversation!
👨🏻💻 My Critical View
While Switch presents a compelling solution to urban mobility challenges, here are some critical considerations for investors:
Market Traction: while Switch has shown promising traction with early revenue generation and investor commitments, the path to profitability in the SaaS B2B model can be challenging, especially considering the need for ongoing investment in technology development, sales, and marketing. Investors should scrutinize Switch's financial projections and growth strategy to ensure they align with realistic market expectations and timelines.
Competition: the competitive landscape within the mobility sector is fierce, with both established players and emerging startups vying for market share. Switch will need to demonstrate a clear competitive advantage and robust scalability to navigate this crowded market successfully.
Scalability: Managing over 13,000 vehicles in trials is impressive, but scaling that to encompass entire cities with millions of vehicles is a different challenge. Investors should delve into Switch's plans for handling exponential growth in data volume and ensuring platform stability.
Team Expertise: The team's background in AI, data, and urban planning is strong. However, for a complex solution like Switch, additional expertise in areas like cybersecurity and large-scale infrastructure management might be necessary. Investors should assess if the team has plans to expand its skillset.
By carefully considering these points, investors can make a more informed decision about Switch's potential for success and the impact it can have on revolutionizing urban mobility.
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