Issue #48 - The Future of Manufacturing
Topics this time: investing in DeepTech, gig economy in warehousing, AI and robotics, and new investments in Q4 2023.
👋 Welcome to Issue #48 👋
Hey there!
I hope you had a great start into 2024.
I’m convinced 2024 will be a very interesting year for manufacturing tech. Three main drivers will draw a lot of attention and investment into our industry:
Technological advancements at the intersection of AI and robotics
Massive investments in defense and sustainability
Increasing workforce shortage that drives automation
If one of these drivers resonates with you and you consider to start a company, hit me up.
Enjoy reading - and as always, sharing and feedback is a gift.
Robin
Got a friend or colleague interested in the future of manufacturing? Help me spread the word by sharing the newsletter if you like it!
I. What I’ve enjoyed reading 👇
🏭 DeepTech as an investment area - part I
Investors are increasingly drawn to DeepTech, which now claims a 20% share of venture capital funding and yields returns akin to traditional ventures according to research by BCG (see graphic below). The 20-page long guide covers challenges investing in DeepTech as well as underlying trends (think of climate change, workforce gaps) that makes investing in DeepTech appealing.
🏭 DeepTech as an investment area - part II
Leo Polovets from Susa Ventures has written a post about the financial performance of deep tech companies (see graphic below). According to his analysis by using data from Pitchbook, DeepTech companies see fewer but faster and more successful exits compared to traditional sectors like B2B SaaS, with similar capital intensity regardless of the sector for exits above $250 million.
🗣 Controlling robots with natural language
PCH Innovations has written an article about how robots are getting smarter because of Large Language Models (LLMs). These models help robots understand and do more things using words, like seeing and describing what's around them. By using these models, robots can learn new tasks and even clean up environments without much help from humans.
They've found ways for robots to understand what people say and do tasks based on that, and they're testing this technology in different areas like industry, environment cleaning, and farming. For example, robots can learn to clean up trash in nature or help farmers grow plants better. PCH Innovation is testing these ideas in a lab with a special robot arm and cameras, hoping to make robots understand and do even more things in the future.
🧑🔧 Build better handbook
The "Build Better Handbook", created by Anna-Katrina Shedletsky from Instrumental, shares wisdom from 100+ electronics product launches, aiming to empower engineering and operations teams. It covers leadership insights, tactics, and experiences across product lifecycles specifically for hardware engineers. As Anna-Kartina mentions “[…] back in 2015, there was very little on the internet about the lives of hardware engineers […]” and I’m glad there are more helpful resources available now. Let’s build!
⏱ The gig economy is starting to reach into the warehouse
Logistics companies are adopting gig economy tactics by offering flexibility in scheduling and shifts to attract workers - mirroring Uber or Instacart models. However, unlike hailing a ride, warehouse jobs need trained workers—like forklift operators. Platforms like HapiGig let employers choose from available workers with set availabilities and background screenings. Around 21% of logistics workers in the US now opt for flexible, self-chosen shifts, aiming to adjust staff according to demand. This shift also opens opportunities for those seeking part-time or flexible work arrangements. I’m asking myself: will we see this shift happening in Europe as well?
💥 Progress in AI x Robotics
Applying AI in robotics is progressing incredibly fast. Brett Adcock has summarized the progress in a recent tweetstorm including research done by teams at Meta, DeepMing and Stanford among others.
II. About industrial Startups and Companies
📍 Why manufacturing needs software now more than ever
The venture capital firm Activant has published a post about manufacturing software and its believe that the “why now” case for this market has never been stronger. The article covers the history of manufacturing software, market trends and their view on several subsegments within manufacturing software (see graphic below).
I don’t agree with all of the mapping of the subsegments on market growth conviction vs. tech maturity but thought it’s an interesting and opinionated way of mapping the manufacturing software landscape.
💸 Squint has raised a $13M Series A led by Sequoia Capital
Squint secured a $13M Series A funding led by Sequoia Capital and Menlo Ventures, for its Augmented Reality (AR) platform. Squint digitizes operational knowledge through AR and thereby helps to streamlines knowledge transfer, reducing onboarding time by over 50% and doubling experienced operators' efficiency. The company also released a new AI-powered feature to instantly create precise instructions from recorded videos. Timing for such a product couldn’t be better given the severe labor shortage in manufacturing.
💸 MaintainX has raised a $50M Series C led by Bain Capital Ventures
MaintainX secured $50M in Series C funding led by Bain Capital Ventures, reaching a valuation of $1bn. Notable investors include former GE CEO Jeff Immelt and Twilio CEO Jeff Lawson. The platform, used by industry players such as McDonald's and Shell, focuses on work order management for frontline workers, enhancing productivity and preventing downtime. The funding will fuel the expansion of AI-driven predictive capabilities and data-driven features to optimize maintenance operations. In general, MaintainX aims to digitize workflows, ensuring compliance, increasing productivity, and providing insights for smarter decision-making in aging infrastructure industries.
🤑 TeamViewer’s strategic investments in manufacturing analytics and IoT
TeamViewer has announced strategic investments in Sight Machine and Cybus with a multimillion-Euro commitment. The investment in Sight Machine, focusing on data-driven manufacturing, aims to enhance operating efficiency, sustainability, and predictive maintenance through AI-driven insights. Meanwhile, TeamViewer's investment in Cybus, specializing in industrial IoT solutions, intends to advance seamless communication between devices and processes in large-scale manufacturing environments, aiming to boost efficiency and sustainability. These strategic investments align with TeamViewer's goal to evolve into a prominent enterprise software provider at the convergence of manufacturing infrastructure, IT systems, and data analytics.
💸 Gecko Robotics has raised additional funding of $100M
Gecko Robotics secured $100M in extension funding, totaling $173M, with investments from Founders Fund and USIT. Gecko Robotics utilizes AI-powered software and robotics to maintain critical infrastructure. It partners with the US Navy and Air Force to optimize maintenance cycles and assess asset conditions for enhanced readiness and mission success.
III. Additional funding news in short 👇
👉 Machina Labs (US): has raised a $32M Series B co-led by Nvidia’s NVentures and Innovation Endeavors for its software-defined manufacturing approach. Read more…
👉 UnitX (US): has raised a $5M round led by SE Ventures for its AI vision systems to automate visual defect detection. Read more…
👉 Formant (US): has raised a $21M round led by BMW i Ventures for its robotics data and operations platform. Read more…
👉 Atomic Industries (US): has raised a $17M seed round led by Narya for its computational manufacturing approach, building an AI-powered tool and die maker. Read more…
👉 Automata (UK): has raised a $40M round led by Dimension for its vertically integrated lab automation platform. Read more…
👉 Promise Robotics (CA): has raised a $15M Series A led by Horizons Ventures for its industrial production platform for robotic construction and assembly. Read more…
👉 Augmentus (SGP): has raised a $5M Series A led by Sierra Ventures and Cocoon Capital for its no-code robotics solution. Read more…
👉 Unchained Robotics (DE): has raised a €5.5M round led by Future Industry Ventures and Teklas Ventures for its modular robotics automation solution. Read more…
👉 Kraaft (FR): has raised a €3.2M round led by Chalfen Ventures for its super messaging app for contractors in the manufacturing and construction industry. Read more…
IV. Additional content and the I4.0 Landscape
My Industry 4.0 Landscape
There are nearly 600 active startups in my Industry 4.0 landscape. Click on the link for a larger version. I plan to work on an update in Q1 2024.
If you think there is something missing, then please let me know.
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