The Munich startup Cleverciti Systems aims to use sensor technology to enable smart and efficient parking management, particularly for cities and parking operators.
“The idea is to replace the medieval system of ‘luck’ in the search for a parking space with the efficient use of data,”
says Thomas Hohenacker, founder and managing director of Cleverciti Systems GmbH.
Award-winning business idea
With this idea, Cleverciti has already won several awards, such as the Munich Startup Award 2016 and the special innovation award at Technology Fast 50 Award 2016. In addition, the company German Accelerator winner 2017.
Drivers receive data, for example, via an app or a parking guidance system, indicating where parking spaces are available—or where none are currently available. This significantly reduces the negative impact of search traffic, which accounts for approximately 30% of total traffic in inner cities.
According to Cleverciti, the "typical" driver wastes three years of his life searching for a parking space. Since Hohenacker himself was often "blind" and relying on luck when searching for parking spaces, he decided to found his own smart data company.
Cleverciti offers Smart City Solutions for parking
In 2012, Cleverciti launched its sensor technology, which is installed on lampposts or facades. Sensors scan parking spaces along streets or parking garages every second and send real-time occupancy data to parking operators and drivers. The sensors have a range of up to 400 meters and measure the GPS position and size of the available parking space.
The advantage? The parking area doesn't need to be pre-marked, installation is completed within half an hour, and covers up to 300 parking spaces – and unlike ground sensors, there are no problems at construction sites when the road needs to be torn up.
While there are many different approaches to making parking in cities more efficient, Hohenacker is convinced of his company's approach:
"For cities to optimally manage the valuable real estate of parking spaces, they must also be able to monitor them. We offer the best solution with the greatest reach. We currently have no competitor in terms of efficiency and reliability."
The company has already filed a patent for its parking solution, and further ideas for patenting are in development.
B2B customers in focus
The IT startup focuses on two target groups: municipalities and private parking operators. Experience has shown that the former struggle with extremely long decision-making processes.
In the corporate sector, decision-making processes are much shorter, as ideally only one person makes the decision. For this second customer group, airports and shopping centers are particularly interesting for Cleverciti. They want to reduce CO2 emissions while also offering customers better on-site service to avoid losing them to online retailers.
There are huge opportunities here, especially in the US. Therefore, the Munich-based startup is opening an office in Chicago this summer to tap into the American market. Hohenacker proudly explains:
“We recently signed a contract with the second-largest shopping mall chain in the US and are now beginning to equip the first shopping mall in Boston with our smart parking solution.”
Challenge #1: Be seen as a reliable partner. Show your colors!
Generally speaking, it's helpful to have a lot of patience and to keep showing up. It's also important for the startup to demonstrate that it can be a reliable partner.
Of the approximately 30 employees, five of the Munich-based startup now work in sales. Attendance at twelve trade fairs is planned for 2017. This is no coincidence, as 50% of Cleverciti's customers come through trade fairs. Hohenacker explains:
"We've been to many, many trade fairs over the last year and a half. Because it's very important for a young company to show its colors.
Customers need to see that we're here and that we're staying! Trade fair presence is very important to us because it shows that we're part of the family."
Challenge #2: Smart parking worldwide. With the right partners!
The strategy worked. The startup now has over 15 installations worldwide: near Brisbane (Australia), in Vancouver (Canada), and soon in Kingston, Jamaica – and also in Germany, in Bad Hersfeld. The entrepreneur is also in talks with the city of Munich. And a lot of new business is in the pipeline. Inquiries are coming from Taiwan, Japan, and Singapore. The almost exotic variety of inquiries has surprised the startup.
At the same time, this strong international presence brings with it a major challenge. Ultimately, all these international customers must be adequately served. Since the startup cannot necessarily achieve this alone, Hohenacker says, “It is important to find the right strategic partners on an international basis.”
Challenge #3: Get even faster. Thanks to more capital!
To enable the Munich startup to gain even more momentum, Hohenacker is currently in intensive negotiations with VCs.
"A major challenge for us is to accelerate negotiations with cities. We expect to close our B-Series financing at the end of this year, which will allow us to further expand our international marketing and sales efforts."
After all, the goal is to be a leader in parking logistics – on a global level. The Munich-based startup appears to be on the right track.
This good advice, which Hohenacker himself once received, was and remains helpful:
"As a startup, you have to be patient. Because building a successful company doesn't happen overnight."
copyright Photos: Cleverciti Systems
