Issue #50 - The Future of Manufacturing
Topics this time: talent in manufacturing, software shaking up hardware development, advancements in robotics and AI co-pilots, large investment rounds in Q2 2024.
👋 Welcome to Issue #50 👋
Hey there!
sunny greetings as the second quarter is coming to an end. AI, robotics, and sustainability have been the topics that have gotten most of the industry’s attention. I’m also seeing more and more seasoned entrepreneurs who are starting a new company in physical industries.
On a personal note, I’ve been more active as an angel investor again and also made a new investment in manufacturing (still unannounced). I’m also doing an interview series with manufacturing founders and commercial leaders which I will share in this newsletter regularly.
Enjoy reading, have a nice summer - and as always, sharing and feedback is a gift.
Robin
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I. What I’ve enjoyed reading 👇
✍️ Talent in physical industries
Eclipse Ventures has published an extensive report on talent in physical industries. The report highlights a shift in digital job opportunities from traditional BigTech to physical industries such as manufacturing. There is a growing demand for blended roles requiring both digital and domain skills, with job postings seeking digital skills in physical industries growing significantly faster than in tech (see graphic from the report below). Physical sector companies are also increasingly eliminating degree requirements and offering more apprenticeships, opening pathways to high-demand, well-paying jobs.
🕰️ Is robotics to have its ChatGPT momentum?
A recent article in the MIT Technology review is highlighting the advancements in home robotics and how AI is transforming their capabilities beyond controlled environments like labs. Researchers are leveraging AI technologies such as reinforcement learning and imitation learning to enhance robots' adaptability and functionality in real-world settings. A good example in this article is Henry Evans who is using a robot to regain independence by manipulating his physical environment, such as holding playing cards, after being paralyzed by a stroke.
🔮 The rise of AI Copilots in the industrial world
The adoption of AI copilots in the industrial landscape is inevitable. Recently, at the Hannover Fair 2024, we’ve witnessed numerous incumbents showcasing AI copilot solutions, often in collaboration with Microsoft. Major players like KUKA, Andritz and other prominent German manufacturers seem to be moving into this space. Let’s keep in mind that there is a difference between a demo and an actual release. Siemens for example has shown their industrial copilot but has not officially released it yet. New offerings from US-based scale-ups such as Tulip and Sight Machine were also shown there.
Meanwhile in Europe, remberg* has already launched its AI copilot for machinery and equipment. On its website, the CEO posted a video message and blog post that outlines how AI has the potential to solve some of our biggest challenges in the industrial space, such as dealing with rising complexity of equipment, the shortage of technical talent and minimizing downtime. The video showcases remberg’s AI capabilities to solve technical issues of equipment faster and highlights the importance of not only providing a general asset-agnostic “ask AI” solution, but rather follow an asset-centric approach to prevent GenAI from making hallucination errors across different machines - which can occur when language models are based on data or manuals from various assets.
It's fascinating how these copilots are evolving from providing AI assistance today towards performing AI agent-based actions in the future like solving issues, handling tickets, and managing operations autonomously. Let’s build!
*Disclaimer: I am an angel investor
🤖 Opportunities of embodied AI
In this post, Eclipse Partner Seth Winterroth predicts a forthcoming productivity boom in robotics. This boom is fueled by new technological breakthroughs such as enhanced computational power, cheaper sensors, and advanced AI models. It underscores a rising market demand for autonomous systems amid a severe labor shortage in our industry. Below is a graphic from the post that underlines the amazing progress of robotics in the past 20 years:
🥵 Software for hardware is heating up
Alex Huckstepp has written a blog post highlighting the booming landscape of "software for hardware" startups that are shaking up the industry giants like Dassault, Autodesk, and Siemens. Innovations include generative design tools, accelerated multi-physics simulations, and advanced supply chain management systems, all aimed at enhancing efficiency and productivity. Large CAD and PLM players have historically used M&A in the past to keep up with innovations and I wouldn’t be surprised to see more M&A in that segment soon.
II. About industrial Startups and Companies
🤑 Viam has raised a $45M Series B led by USV and Battery Ventures
Viam just secured $45M in Series B funding led by USV and Battery Ventures to accelerate innovation in AI, robotics, IoT, and smart machines. The simple goal of Viam is to enable “global teams do more with sensors, machines, and devices at scale”. The funds will enhance enterprise partnerships, expand their developer ecosystem, and strengthen the integration of software and hardware. Viam’s unique platform combines hardware APIs, cloud connectivity, and AI, offering versatile solutions across various industries like insurance, industrial automation, and marine conservation.
🤑 Markt-Pilot has raised a $43M Series A led by Insight Partners
Markt-Pilot has completed a Series A of $43M led by Insight Partners with participation from Capnamic, to expand its business in Europe and the US. The company aims to enhance market transparency and optimize spare parts pricing for the manufacturing industry. Spare parts is a very lucrative business in manufacturing and over 100 Markt-Pilot customers have seen an 20% average increase in sales for their spare parts.
🤑 Bot Company has raised a $150M seed round led by Nat Friedman
It’s not every day that someone raises $150M as the first round. Kyle Vogt, former CEO of Cruise, has launched a new robotics startup called the Bot Company. The company has raised $150M from prominent investors such as Nat Friedman and Daniel Gross. The startup, co-founded with Paril Jain and Luke Holoubek, aims to create bots that handle household chores. This venture follows Vogt's resignation from Cruise after a pedestrian accident prompted regulatory action against the company.
🤑 Deltia has raised a €4.5M Seed round led by Cavalry Ventures
Deltia, a Berlin-based AI startup, has secured a €4.5M in a seed round led by Cavalry Ventures. The company leverages visual digitization and computer vision to optimize manual production processes, improving efficiency and reducing training time. Deltia's solutions, which adhere to strict European data protection standards, are projected to boost productivity by 10-30% and cut training time by 20-50%.
🤑 EthonAI has raised a $16.5 Series A led by Index Ventures
Index Ventures has led a $16.5M funding round for EthonAI, a startup founded in 2021 that uses AI to improve manufacturing efficiency. EthonAI's clients include Siemens, Lindt & Spruengli, and Roche, with its software notably reducing defects in Lindt's production line (so you get well rounded chocolate). The funding will support EthonAI's continued development and expansion, leveraging data from factory sensors to optimize general manufacturing processes.
You can find the post by Index Ventures here that explains why they’ve invested.
💰 Matter Venture Partners raises $300M first fund
Wen Hsieh and Haomiao Huang, former investors at Kleiner Perkins, launched Matter Venture Partners with a $300M inaugural fund focused on "hard tech" investments. Backed by Kleiner Perkins, TSMC, and other investors, the fund aims to support startups in areas like semiconductors, AI, and robotics. Despite challenging fundraising conditions in 2023, the firm successfully exceeded its initial target due to strong interest in foundational technologies.
III. Additional funding news in short 👇
👉 Mimic (CH): has raised a €2.3M pre-seed led by Founderful for its collaborative robot with humanoid hands. Read more…
👉 Robovision (BELG): has raised a $42M round led by Target Global and Astanor Ventures for its platform to manage vision intelligence inside smart machines. Read more…
👉 Coboworx (DE): has raised a €11.4M round led by Northstar Family Holdings for its robotics solutions. Read more…
👉 Rollup (US): has raised a $5.6M round led by Andreessen Horowitz and Thiel Capital for its connected engineering hub. Read more…
👉 Forge (US): has raised a $2.1M seed round led by Gradient Ventures for its procurement software for hardware companies. Read more…
👉 Collaborative Robots (US): has raised a $100M Series B round led by General Catalyst for its “new kind of robotics company. One without egos. Driven by empathy”. 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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