Investment Overview

CityMCP is building the standard protocol for smart city infrastructure in the EU. A 12-year roadmap from R&D to 30–50 cities and €85M+ ARR.

€245M
Total Investment
€85M
Year 10 ARR Target
Year 7
Break-even
30–50
Cities by Year 12
€120B
TAM — Global 2030
€18B
SAM — EU Target
€2.5B
SOM — By 2035
25–30%
Non-dilutive Funding

Budget Allocation — €245M

90% hardware strategy reflected in the budget. Largest allocations to hardware R&D, field deployment, and the software platform.

Field Deployment
€50M
Hardware R&D
€45M
People
€45M
Software & ML Platform
€40M
Operations
€30M
Ecosystem & Partnerships
€10M
Legal & Compliance
€8M
Government Relations
€7M
Contingency (10%)
€10M

Investment by Phase

Category Phase 0–1 Phase 2 Phase 3–4 Total
Hardware R&D & Prototyping €22M €15M €8M €45M
Software & ML Platform €18M €12M €10M €40M
Field Deployment €12M €20M €18M €50M
Operations €5M €8M €17M €30M
People €15M €12M €18M €45M
Legal, Compliance, IP €3M €2M €3M €8M
Ecosystem & Partnerships €2M €3M €5M €10M
Government Relations & BD €2M €2M €3M €7M
Contingency (10%) €3M €3M €4M €10M
TOTAL €82M €77M €86M €245M

Four revenue streams to €85M ARR

Diversified revenue across platform licensing, hardware certification, data services, and professional services.

€45M ARR
Platform SaaS License
Per-city annual license based on population. €0.50–1.50 per capita per year. Primary revenue driver at scale.
€20M ARR
Professional Services
Deployment, integration, training, consulting. €150–250/hr. Critical for initial city onboarding and customization.
€12M ARR
Data Services
API access for third-party developers. Tiered pricing from €500 to €50K/year per client. Feeds ecosystem growth.
€8M ARR
Hardware Certification
Annual fee per certified device model. €20K–100K per model per year. Scales with manufacturer ecosystem growth.

12 years from R&D to EU standard

Four phases taking CityMCP from founding to 30–50 cities and EU standard status.

Phase 0: Foundation 2026–2028 · Years 0–2

Build core team, R&D, and first prototypes. MCP protocol v1.5. Partner with 2–3 EU research universities.

Team: 25–40 Budget: €18M MCP v1.5 published Hardware prototypes Horizon Europe grant 3 university partners
Phase 1: Pilot City 2028–2030 · Years 2–4

Deploy in one district: 50–100 intersections, 2,000–5,000 street lights, 10,000–20,000 meters. First developer access to MCP API.

Team: 60–80 Budget: €45M cumulative 1 district operational Performance data published 10 third-party developers
Phase 2: Full City Deployment 2030–2032 · Years 4–6

Scale to full pilot city: 800–1,200 intersections, 15,000+ street lights, 80,000+ meters. Begin second city in different country.

Team: 120–160 Budget: €110M cumulative 1st city fully deployed 2nd city pilot active 5+ certified manufacturers 50+ marketplace apps
Phase 3: Multi-City Scaling 2032–2035 · Years 6–9

Deploy in 5–10 EU cities. Regional deployment partners. Mature hardware supply chain. Revenue crosses €10M, then €40M ARR.

Team: 250–400 Budget: €190M cumulative 10 cities 20+ manufacturers €40M ARR EU standardization initiated
Phase 4: Market Leadership 2035–2038 · Years 9–12

Deploy in 30–50 EU cities. CityMCP adopted as EU recommended standard. Begin non-EU licensing. IPO readiness.

Team: 500–800 Budget: €245M cumulative 30–50 cities EU standard status €85M+ ARR IPO readiness

Blended funding with 25–30% non-dilutive

Leveraging EU grants, national programs, and EIB loans alongside traditional VC rounds.

Source Amount Timing Notes
Seed / Series A €15–20M Year 0–2 Deep-tech VCs: EQT Ventures, Lakestar, Earlybird
EU Grants (Horizon Europe, EIC) €20–30M Year 1–4 Non-dilutive, covers 50–70% of R&D costs
Series B €40–50M Year 3–4 Growth VCs + strategic investors
National Smart City Funds €10–15M Year 2–6 KfW (DE), RVO (NL), EAS (EE) programs
Series C / Growth €60–80M Year 5–7 Infrastructure funds, ESG investors
Revenue (reinvested) €40–50M Year 6–12 After break-even, self-funding growth
EIB / Infrastructure Loans €20–30M Year 5–10 Low-interest EU infrastructure financing

From 63 to 414 people

Average fully-loaded cost: €95K/year blended across roles. Scaling from founding team to full operational capacity.

Department Phase 0–1 Phase 2 Phase 3–4 Peak
Executive Team 5 8 10 12
Hardware Engineering 12 20 30 40
Software Engineering 15 35 60 100
ML/AI Research & Engineering 8 15 25 40
Urban Systems & Domain Experts 4 8 15 25
Field Operations & Deployment 3 15 40 80
Product & Design 4 8 12 18
Sales & Business Development 3 8 20 35
Legal, Finance, HR, Admin 9 18 38 64
TOTAL 63 135 250 414

Known risks and mitigations

Transparent assessment of key risks with concrete mitigation strategies for each.

Municipal Procurement Delays High — 75%

12–18 month buffer built into timeline. Innovation-friendly cities first (NL, EE, DK). Pre-signed MOUs before deployment commitment.

Cybersecurity Breach Critical — 15%

Security-by-design with HSM on all edge nodes. Bug bounty program. ISO 27001 certification. Incident response plan tested quarterly.

Hardware Certification Delays High — 50%

Parallel certification tracks. Accredited test lab partnerships. Budget for 2 certification cycles per device type.

Pilot City Underperformance Critical — 20%

Extensive simulation before live deployment. Phased rollout with clear go/no-go metrics. Hardware fallback modes ensure city operations continue.

Competing Platform Emerges Medium — 40%

Speed advantage through early standardization. Patent portfolio (30–50 patents). Network effects from certified manufacturers and developer ecosystem.

Budget Overrun (>15%) High — 50%

10% contingency reserve. Monthly financial reviews. Phase-gate funding with pre-defined scope reduction triggers.

EU Regulation Changes Medium — 35%

Active engagement with DG CONNECT, CEN/CENELEC. Compliance flexibility designed into architecture. AI Act compliance from day 1.

Key Person Dependency High — 45%

Mandatory knowledge sharing. Comprehensive documentation. Competitive compensation with ESOP vesting. No single point of failure in architecture.

The only platform with all four

No competitor offers all four pillars. This is the defensible moat.

MCP
Standardized Protocol for AI
20+
Certified HW Manufacturers
3-Tier
Hybrid ML Reliability
6
Cross-domain Optimization

Let's build the future of cities

CityMCP is raising its initial round. If you're interested in deep-tech infrastructure with EU-scale impact — let's connect.