Upfront costs for immediate infrastructural upgrades can be steep. Instead, subscription startups are enabling customers to buy into them on a more affordable, monthly basis.
Major infrastructural upgrades are needed to convert our old cities into connected, intuitive smart cities. But upgrading infrastructure isn’t simple. There are a lot of factors that need to be taken into account — steep upfront costs, the recurring costs of maintenance, the pace at which technology improves and needs replacing.
Most customers want the benefit of updated technologies — improved heating and cooling systems, LED rooftop light bulbs, energy efficient electric vehicles — without having to install and maintain the underlying infrastructure. New models of ownership offer clients these goods as services, instead of owning actual infrastructure.
Using CB Insights data, we identified 5 companies that are using on-demand business models to sell infrastructural upgrades and their services, from project financing vehicles to subscription service technology bundles. The companies are listed below in order of total disclosed funding.