Some estimates put the future mobility market at $178.7 billion by 2026, up from $78.1 billion two years ago. And there has been $400 billion worth of investments made into the sector over the past decade, with  $100 billion invested since 2020.

But most VC funds are not specialists in this area. So a space has opened up to look specifically at electric powertrains, batteries, and wider electric and fuel cell solutions for mobility.

That at least is the thesis behind mobility fund Vektor Partners which has raised a new €125 million fund to address areas like these.

Founded in 2020 as one of the few specialist VCs firms in mobility, Vektor invests in, it says, “deep tech startups employing AI and software that enable scalable and category-defining SaaS/MaaS-based businesses” which move people and goods from A to B more efficiently, in a greener and safer fashion.

Partners include Sebastian Bihari, who previously led automotive technology investment banking; Chris Riley, former startup CFO; Isabel Falkenberg, an ESG expert; and Valentin Menedetter, a former Palantir Technologies and Speedinvest senior executive

Together with Nielsen Ventures Vektor led a $17.5 million Series A funding round into NoTraffic – a platform that employs computer vision, machine learning, and cloud integration to for traffic management.

Other recent investments include German start-up Peregrine Technologies and Israeli technology firm GuardKnox.