Exploring the 2020 Industrial Technology Sector

White Star Capital
Aug 10, 2020 · 2 min read

H1 Deep Dive on the Industrial Technology Sector Landscape

White Star Capital is releasing its latest industry deep dive report, following a series of publications on Digital Health, Communication and Collaboration, Fintech, and Wellbeing. In our Industrial Technology Sector Report, we explore the next wave of Industrial Automation, including smart factories, advanced automation, and intelligent supply chains. This report focuses on segments of the industry, including B2B Logistics Marketplaces, Supply Chain Automation, Mass Customization and Robotics, and explores the outlook from North America, Europe and Asia.

At White Star Capital, our Industrial Technology portfolio includes startups such as KeyMe, a company that bridges the physical and digital worlds to offer a convenient way to copy keys, Vention, the first digital manufacturing platform dedicated for factory equipment, and Packhelp, Europe’s leading managed marketplace for custom packaging. Going forward, we expect technical breakthroughs to lead to a rise in businesses that are democratizing automation and consumerizing the industrial supply chain.

The COVID-19 pandemic has also put pressure on manufacturers to accelerate the adoption of Industry 4.0 initiatives in order to avoid future consumer demand and/or labor shocks. We believe that this will positively impact businesses focusing on inventory and demand forecasting, general process robotics technologies, and on-demand warehousing. Some of our other key insights into the Industrial Technology sector include:

  • Global Industrial Technology funding has grown at a 21% CAGR since 2011 and totaled $160bn+ in the past three years, driven by mega-rounds in startups like UIPath, Flexport, Lalamove, and Convoy.
  • 26 out of the 29 global Industrial Technology unicorns, including Automation Anywhere and Rivigo, are based in North America and Asia.
  • Industrial Technology deal valuations are generally increasing across all stages and regions, with Asian valuations being driven by outsized mega-rounds.
  • Strategic M&A accounts for over 75% of Industrial Technology exits in North America and Asia, while IPOs drive the majority of Asian exits.

From its inception, White Star Capital has been investing in entrepreneurs leveraging emerging technologies to improve how products are developed, made and delivered throughout North America, Europe and Asia, and we look forward to making further investments in the sector’s most promising companies.

Please have a read and share widely!

If you have any questions or feedback on our report, please email mitchell@whitestarcapital.com

About White Star Capital

White Star Capital is a global multi-stage technology investment platform that invests in exceptional entrepreneurs building ambitious, international businesses. Operating out of New York, London, Paris, Montreal, Tokyo, and Hong Kong, our presence, perspective, and people enable us to partner closely with our Founders to help them scale internationally from Series A onwards.

Find out more about how we venture beyond at www.whitestarcapital.com or follow us on LinkedIn, Twitter or Facebook.

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