Building the Cities of Tomorrow: The GSB Impact Fund’s Urban Development Investment Thesis
“Cities are the frontline of innovation and impact. Together, let’s architect a world where every urban space is accessible, resilient, and teeming with opportunity.” — GSB Impact Fund Urban Development Team
Written By: Maha Al Fahim (Team Lead), Danielle DeVera, Grace Pan, Juan Diego, Maren Wilder, Michael Paquette, Patrice Tsafack, Becca Blais, Alex Webb
Edited by: Alex Webb and Caroline Chen
In the time it takes you to read this post, the world’s cities will have grown by nearly 600 people. Over the next quarter-century, the global urban population will expand by 78 million annually, according to United Nations estimates. Cities have long been engines of prosperity, driving 80% of global GDP, yet they are also the frontlines of some of the world’s greatest challenges — housing affordability, public service access, climate resilience, and mobility.
At the GSB Impact Fund’s Urban Development Team, we believe that the future of cities can be shaped by scalable, market-driven solutions that address these challenges head-on. Here are the four pillars guiding our investments.
1. Housing 🏠
A thriving city must be a livable city. Today, the U.N. estimates that around 25% of the world’s population lives in slums or informal settlements, and even in developed markets, homeownership is increasingly out of reach. Affordable housing is not just a social imperative — it is essential for economic mobility, workforce attraction, and long-term urban sustainability.
We invest in companies that:
- Cut construction costs through modular building and innovative materials
- Expand homeownership access with creative financing models
- Accelerate housing supply by tackling outdated zoning and permitting
- Support critical infrastructure for the unhoused and informally housed
From base-of-the-pyramid housing to middle-class affordability, we see massive opportunity to build vibrant, prosperous societies through innovative housing solutions.
2. Climate Mitigation & Adaptation 🌱
Cities produce 70% of global CO₂ emissions, according to the World Bank, making them both a major contributor to climate change and a key player in its solution. At the same time, they are increasingly vulnerable to extreme weather events, from hurricanes and flooding in Florida to wildfires and droughts in California.
We are excited by solutions within energy, transportation, and the built environment, including:
- Energy-efficient building materials and smart grid technologies to lower emissions
- Data-driven insurance technology platforms that use hyperlocal climate data to predict and mitigate risks
- Green infrastructure solutions, such as permeable pavements and urban forests, to combat flooding and the urban heat island effect
By partnering with founders at the intersection of urban resilience and climate tech, we aim to create outsized impact and returns.
3. Mobility 🚲
The way people move through cities is changing at warp speed. From car-free zones in Stockholm to the rise of mobility-as-a-service, Deloitte projects this sector could hit $518 billion by 2030. We’re hunting for the next wave of mobility startups that make urban transportation more sustainable, efficient, and inclusive.
We focus on startups advancing:
- Micro-mobility solutions (bikes, scooters) in emerging markets
- Last-mile delivery logistics for faster, greener urban commerce
- Smart traffic management using AI and real-time data
- Public transit innovations and EV infrastructure development for scalable impact
True transformation in mobility demands forward-thinking governance, data-driven planning, and accessible, eco-friendly systems that work for everyone.
4. Community & Public Services 🤝
Cities aren’t just concrete jungles; they’re living ecosystems of people, businesses, and ideas. Access to public services, safety, and local economic opportunity are essential for urban well-being, but as of 2019, only half of the world’s urban population had convenient access to public transportation, according to the UN., and urban crime rates are consistently higher than those in rural areas.
We invest in solutions that enhance:
- Municipalities’ digital infrastructure to improve public service delivery
- Marketplaces for shared services, such as childcare and local business support
- Inclusive urban design that considers accessibility for all (elderly, disabled, children)
- Community safety solutions and initiatives supporting small businesses
Cities are more than just buildings and roads — they are living ecosystems where people, businesses, and ideas converge. The companies we back in this space are those that make urban life safer, more connected, and more inclusive.
Investing in the Cities of Tomorrow
As the GSB Impact Fund’s Urban Development investment team, we believe that these four investment pillars — Housing, Climate, Mobility, and Community — are key to creating cities where people can afford to live, easily access essential services, adapt to climate challenges, and move efficiently through thriving urban environments.
If you’re an entrepreneur developing a scalable, high-impact solution in any of these spaces, we want to hear from you. Let’s join forces to reinvent the urban landscape and shape the next generation of cities — together.
Ready to build? Get in touch and let’s reimagine the future of urban living.
