Issue #49 - The Future of Manufacturing
Issue #49 - The Future of Manufacturing
Topics this time: scaling industrial companies, follow-on investments for DeepTech startups, cool manufacturing videos, and large investment rounds in Q1 2024.
👋 Welcome to Issue #49 👋
Hey there!
The first quarter of 2024 is already over and spring has arrived. AI and robotics continue to attract talent and investors. This is mirrored on the funding side if we look at the companies that have raised large rounds this year so far.
On a personal note, my start to the year has been very exciting. Kraken (part of Octopus Energy) has acquired our company Kwest in January. I’m now working as a Head of Client Delivery at Kraken to scale our technology together and speed up the energy transition. This also means I’ll be more active again as an angel investor with a strong focus on software and DeepTech.
Enjoy reading - and as always, sharing and feedback is a gift.
Robin
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I. What I’ve enjoyed reading 👇
✍️ Designing for industrial scale
Brett Bivens has written a blog post that emphasizes the importance of turning ideas into action through “business systems”. The post discusses the challenges of scaling physical technology companies and the need for a different approach than that used by software firms (aka traditional b2b SaaS playbooks). Brett highlights the significance of designing effective business systems for industrial success, focusing on alignment, respect for challenges, and self-awareness. A well-known example is the Danaher Business System. The post concludes by stressing the urgency of efficiently scaling technology to transform physical industries and foster a future of stronger innovation (in Europe).
🔮 Hadrian’s vision on American manufacturing
Chris Power founded Hadrian to revolutionize manufacturing by leveraging software and automation, particularly focused on aerospace and defense. With a fresh $117M Series B, the company aims to increase efficiency, meet its growing demand, and expand operations across multiple new facilities by 2025, attracting interest from aerospace primes for partnerships and dedicated production facilities. In this 27min documentation, Chris shares his entrepreneurial journey building Hadrian and explains his plans for the future. Definitely worth watching and makes you exciting to work on manufacturing!
📉 Countdown Capital is shutting down
Countdown Capital, a venture capital firm focusing on hard tech startups, will shut down due to challenges in generating strong returns. Founder Jai Malik cited difficulties in competing with larger, multi-stage venture firms and inefficiencies in early-stage hard tech investing. The closure highlights broader challenges faced by specialized funds in accessing promising industrial startups and maintaining competitiveness against larger players.
▶️ Conversion to next round for DeepTech startups
Andrew Scott from 7percent ventures has shared a Dealroom analysis on the conversion to next VC round for DeepTech startups. The analysis compares the EU & UK vs. the USA. As you can see in the data below, US DeepTech startups convert to follow-on rounds twice as often as in the EU & UK.
While the analysis above does not share any reasons, I believe that the lack of growth capital for DeepTech startups in the EU & UK plays a significant role for this. Do you agree?
🧑🔧 Manufacturing Apple’s Vision Pro
Tim Cook, CEO of Apple, has released a video of how they manufacture Apple’s Vision Pro. It’s worth a watch!
🤖 The human “Robot Wranglers”
The WSJ has published an article highlighting the increasing presence of robots in warehouses, depicting scenarios where human workers assist malfunctioning robots. These "robot wranglers" bridge the gap between humans and machines, helping employees understand and collaborate with the robots effectively. Despite occasional challenges and mishaps, such as robots wandering off or malfunctioning, the integration of robots into the workforce is seen as an opportunity for mutual cooperation rather than a threat (I’m repeating this over and over again).
II. About industrial Startups and Companies
🤑 Synopsis is acquiring Ansys in mega $35bn deal
Chip design software maker Synopsys announced in January a $35bn cash-and-stock acquisition of Ansys, a software company used in various product designs. This marks one of the largest deals in the tech sector and aims to create an integrated solution for silicon to system designs. The acquisition is seen as a response to the growing complexity of chip designs and the need for integrated solutions. Regulatory scrutiny is expected, especially in key markets like China, but both companies anticipate completing the deal within 24 months. Incumbents in industrial design have always used M&A to bring in innovation and my bet is that this will only increase in the next years.
💸 Physical Intelligence has raised a $70M seed round
A team of robotics and AI all-stars seeks out to bring general-purpose AI into the physical world. The company is called Physical Intelligence and has raised a $70M seed round from Thrive, Khosla, Lux and Sequoia. Given the very experienced team and timing, this is one to watch closely in the years to come.
💸 Figures has raised a $675M Series B
Figure, a robotics startup, has raised an enormous $675M Series B round, with notable investors like Microsoft and Amazon. The company, led by founder Brett Adcock, aims to create humanoid robots for industrial use, focusing initially on warehouses and factories (watch this video). Through partnerships with OpenAI, Figure plans to enhance communication capabilities between humans and robots using natural language processing. With Microsoft's support, Figure aims to accelerate AI breakthroughs and deployment of humanoid robots for real-world applications, including a deal with BMW.
💸 Intenseye has raised a $64M Series B
The workplace safety software provider Intenseye, has raised $64M in funding led by Lightspeed Venture Partners, totaling over $90M raised. Their AI platform detects workplace risks, aiming to prevent accidents and enhance compliance worldwide. Intenseye plans to expand with new AI models for anonymization and mobile support. With a focus on privacy-by-design, it serves over 100,000 workers across 30 industries on six continents. P9 Capital and AirStreet have been early backers of Intenseye as well.
💸 Robco has raised a $42.5M Series B
Lightspeed Venture Partners and other investors inject $42.5M into RobCo for its expansion. RobCo specializes in affordable robotics solutions for SMEs, focusing on autonomy and intelligence in industrial automation. The funding will primarily support distribution channel expansion and product development, aiming to become Europe's leader in modular robot automation. I’d say the race for modular robot automation startups in Europe is on.
🤑 Blue Yonder has acquired flexis
Blue Yonder, a supply chain solutions provider, has acquired flexis, a software technology company specializing in production optimization for automotive and industrial OEM sectors. The acquisition enhances Blue Yonder's capabilities in dynamic planning and flexible order sequencing. It’s a strategic step to cater to the growing demand for personalized manufacturing.
III. Additional funding news in short 👇
👉 Daedalus (DE): has raised a $21M Series A by NGP Capital for its precision-manufacturing factories. Read more…
👉 Starship Technologies (EE): has raised a new round of $90M co-led by Plural and Iconical for its delivery robot services. Read more…
👉 Hippo (US): has raised a $21M Series B led by Standard Investments for its robotics automation solution for greenhouses. Read more…
👉 Cogna (UK): has raised a £3.76M seed round led by Hoxton Ventures for its software platform where domain experts create their own customized software tools in collaboration with AI. Read more…
👉 Glacier (US): has raised a $7.7M round led by New Enterprise Associates for its AI-enabled robotics sorter. Read more…
IV. Additional content and the I4.0 Landscape
My Industry 4.0 Landscape
I’ve updated the landscape in January this year. There are ca. 600 active startups in my Industry 4.0 landscape. Click on the link for a larger version.
If you think there is something missing, then please let me know.
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