October 2020
Industrial innovation:
the next big opportunity in tech.
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Speedinvest - The VC for European
Industrial Tech Startups.
Speedinvest is a leading European, early-stage VC with focused
investment teams, in-house expert support, and the networks
needed to build category-defining tech companies.
The Industrial Tech team invests in seed-stage startups across
Europe that solve complex problems within the industrial world.
We love startups that revolutionize complete industries or support
the “old economy” in becoming more digital. Our investors are
leading industrial corporations eager to collaborate with our
portfolio companies.
Learn more about our Industrial Tech, Fintech, Deep Tech, Network
Effects, and Health and Consumer Tech teams and our +170
portfolio companies at speedinvest.com.
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Dealroom.co is the foremost data provider on startup,
early-stage and growth company ecosystems in Europe
and around the globe.
Founded in Amsterdam in 2013, we now work with many of
the world's most prominent investors, entrepreneurs and
government organizations to provide transparency,
analysis and insights on venture capital activity.
Our offerings include data sets via SaaS and API as well as
custom reports and bespoke ecosystem platforms.
Global intelligence about promising
companies, from startups to unicorns.
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After growing 2.7x faster than
overall VC, the ecosystem has
reached critical mass.
Industrial Tech investment has grown 8.8x
between 2014 and 2020, nearly three times
faster than overall European VC investment
which already grew 3.2x in the same period.
German and French startups lead the way in
Europe, having raised €1.9 billion since 2014,
roughly 45% of the European total.
8.8x
€0.1B
€1.2B
30% of GDP
industry
32% of GDP
Enterprise services
32% of GDP
Consumer services
6% agriculture
Share of global
economy
Industry 4.0 era
in 2020s
The web in 1990s
Mobile era in 2000s
Digital
breakthroughs
eCommerce 1990s
Cloud-era in 2010s
2014
2020E
A third of the global economy is
industrial. A major digitization
wave is on its way.
With an output of $23 trillion per year, industry
represents roughly a third of the global
economy.
Industrial sectors like manufacturing, mining,
construction, and utilities have traditionally
been among the least digitized. Today,
Industrial Tech is at a similar inflection point as
enterprise tech/cloud was in 2010. Enter the
industry 4.0 era.
Europe is well positioned and
European Industrial Tech could
soon be a €300B market.
Europe’s combined industrial & logistics
turnover is €11 trillion. PwC estimates 3% of
that being invested in “Industry 4.0 solutions”.
This percentage is consistent with trends seen
in enterprise IT investment and implies over
€300 billion per year invested in innovations like
AI, IIoT, cybersecurity, 3D printing et cetera.
Logistics deserves a closer look, as it’s not just
about the sector investing in IT, but also about
the entire industry itself being revolutionized by
new entrants.
The pandemic, political climate and actual
climate change have accelerated the sense of
urgency around themes like decentralization,
cybersecurity, customization, and
sustainability. Europe, with its density of high
value-add manufacturing, is especially well
positioned to lead.
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Industrial tech startups are those companies transforming traditional industrial processes through software and other innovations.
While many of these companies use common technologies, their applications are broad. This report explores the following segments.
For this report, we’ve indexed 531 European industrial tech companies
with at least €1M in venture capital funding, across 14 core segments.
Advanced Materials
Additive Manufacturing (3D Printing)
Simulation and Advanced Engineering Tools
Data Analytics and Predictive Algorithms
Logistics
Construction
Procurement
Energy
Robotics
Connectivity and IoT Infrastructure
Digital Customer Interaction and Industrial
Marketplaces
Industrial VR/AR
Industrial Drones and Drone Software
Industrial Cybersecurity
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Convergence of Operational Technology (OT) and IT
Real-time visibility and simplified industrial process management.
Drive further automation through machine learning and robotics.
Decentralization of production and customization
Manufacture closer to customer, better customization.
This leads to reduced production time but also new revenue opportunity.
Consumerization of manufacturing
Provide blue collar and white collar workforces with tools that offer same
experience as technology in their private life.
Decarbonization of industrial processes
Smarter and more economical usage of energy and a steady shift to
renewable energy.
Top-down desire to adopt technological change
A general desire to transform and bring a significant boost in efficiency,
improving quality, reducing costs, minimizing mistakes and accelerating
revenue growth.
Five trends that are
accelerating Industrial Tech
Solutions for industrial IoT
Real-time visibility in logistics
Digital twins
Predictive maintenance
Additive manufacturing marketplaces
Producers of 3D printers
Software for additive manufacturing
On-demand manufacturing
Exoskeletons for heavy duty tasks
Smart wearables
Collaborative robots
Augmented reality software
Energy consumption optimization
Sustainable logistics
Sustainable materials
Renewable energy
Industrial cybersecurity
Advanced analytics
Simulation and advanced engineering
Robotics
Applications &
companies
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Table of contents
$23 trillion industrial sector going digital
Industrial tech startup landscape is maturing
VC landscape and M&A activity
Logistics: a closer look
1
2
3
4
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$23 trillion industrial
sector going digital
1
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Japan
Germany
USA
China
Russia
South Korea
India
France
Indonesia
UK
Industrial value added
▉ Manufacturing ▉ Mining, construction, utilities (excl. logistics)
Food
Machinery & equipment
Basic metals
Office and computing
Motor vehicles
11%
11%
7%
7%
6%
4%
Global industrial output by sector (value added)
Chemicals
Dealroom analysis of data by World Bank and United Nations (mostly 2018 data).
Value added is turnover minus cost of inputs. This measure avoids double counting when looking at multiple sectors.
Italy
Mexico
$3.9T
$2.2T
$1.0T
$0.7T
$0.4T
$0.2T
$0.4T
$0.2T
$0.3T
$0.3T
$5.6T
$3.5T
$1.4T
$1.0T
$0.7T
$0.5T
$0.5T
$0.5T
$0.5T
$0.4T
$0.3T
$0.4T
$0.2T
$0.4T
Fabricated metal
3%
Coal, oil, nuclear
3%
Consumer electronics
2%
Traditional industry - production activity like manufacturing,
mining, construction and utilities - is a $23 trillion sector,
accounting for 30% of the global economy. The fourth industrial
revolution is now under way. Industry 4.0 is finally reaching a
moment of critical mass in terms of investment.
This report looks at software-enabled innovations (including
robotics and advanced materials) transforming industrial
processes. Logistics, while adjacent to industry, is included in
this
report as an
important
industry-intersecting and
connecting segment.
This year, the Covid-19 pandemic has added another vector:
decentralization. Software could play a key role in making
supply chains, from production to distribution, more agile and
able to cope with global disruptions and uncertainty - making
Industry 4.0 more pressing than ever.
30% of the global economy is
industrial; an output of $23 trillion.
46%
Other
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Industrial tech’s position relative to enterprise & consumer tech.
Media
eCommerce
Consumer finance
Entertainment
Banking
Health
Enterprise software
Marketing tech
Fintech
Engineering tools
Robotics
Energy
IoT
(Industrial applications)
Agtech
Industrial tech
Enterprise & Govtech
Consumer tech
Industry
manufacturing,
construction, utilities
23% of GDP = $19 trillion
B2B Services
finance, marketing, legal
consulting, logistics, etc.
32% of GDP = $26 trillion
Extraction
mining $6B (7%)
+ agri $5B (6%) =
13% of GDP
B2C Services
healthcare, food, mobility,
hospitality, education, etc
32% of GDP = $26 trillion
Industrial
marketplaces
Logistics
B2C
marketplaces
Mining software
Procurement tools
Edge cases excluded from this report:
Companies like UiPath, Celonis have many industrial
clients. But this report focuses on industrial
processes and logistics only.
Dealroom.co analysis. GDP data by World Bank. GDP split between B2B and B2C is indicative based on Eurostat data. Industry including
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Quality & efficiency

Industrial tech is about the transformation of industrial processes,
through software and other innovations.




Inbound logistics
Operations
Outbound logistics
Sales & marketing
Aftersales
Suppliers
Go-to-market
Labor
Service
Sourcing
Dealroom.co analysis with some inspiration from various McKinsey reports.
Automation of knowledge
work
B2B marketplaces
Supply automation
On-demand storage
Human-machine interaction
Warehouse management
Advanced engineering
Cybersecurity
Predictive maintenance
Additive manufacturing
Shipping marketplaces
Risk management
Supply chain management
Tracking & visibility
Analytics for raw
material trading
Analytics for resource
exploration
Raw material trading
marketplaces
Extraction & selling
Inventory management
Project management
Back-office automation
Logistics platforms
Autonomous delivery
Parcel lockers
Shipping communication
After-sales maintenance
Data management
Manufacturing, construction & process industries
Raw materials
Distribution & consumption
AR/VR tools
Robotic automation
Collaborative robots
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Personal
computing
The
Web
Mobile
computing
Cloud
computing
Artificial
Intel
1980s
1990s
2000s
2010s
2020s
“Software eating the world”
$10 trillion value created on
NASDAQ alone
Industrial tech is at a similar inflection
point as enterprise cloud was in 2010.
Industry 1.0
Late 1700s
Industry 2.0
Late 1800s
Industry 3.0
Late 1900s
Industry 4.0
Today
Computers, automation, robots
Steam engine (later, combustion)
Electricity
Assembly line
Artificial Intel
Cloud computing
Cyber security
Big data
APIs
Internet of Things
3D printing
Autonomous
AR/VR
Technology has been “eating the world”, creating well over $10
trillion in value (the NASDAQ alone representing most of that). So
far, this has mostly addressed consumer and enterprise services.
Now - enabled by AI and other advancements - technology is
moving into more complex physical spaces, such as factories,
trucks, robotics and entire manufacturing processes.
Each industrial revolution has been triggered by major
technological breakthroughs. Industry 4.0 is describing several
technological advancements happening all at once.
NASDAQ Composite
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Europe’s industry is a €11 trillion turnover sector, with 45
million employees. Based on a 2016 survey, PwC estimates
that European manufacturing will invest 3.3% of their annual
revenues in “Industry 4.0 solutions” by 2020. This percentage
is consistent with trends seen in enterprise IT investment. It
implies €300 billion per year in Industrial Tech revenue in
Europe alone.
In Europe alone, Industrial Tech
could soon be a €300 billion market.
Turnover
Value added * Employees
Manufacturing
€7.9T
€2.0T
31M
Logistics **
€1.4T
€0.5T
10M
Energy
€1.3T
€0.2T
1.1M
Construction
€500B
€120B
2.9M
Mining
€100B
€60B
0.4M
Total
€11.2T
€2.8T
45M
x 3% =
€300B+
* Value added is turnover minus cost of goods sold.
** Logistics are normally included in services, not industry, but it’s closely related
and highly relevant, therefore included here.
Software Publishing & Internet Services
8.1%
Banking & Financial Services
6.6%
Education
4.7%
Media & Entertainment
4.6%
Professional Services
4.5%
Telecommunications
4.1%
Healthcare Providers
3.9%
Insurance
3.4%
Pharma, Life Sciences and Medical
3.3%
Transportation
2.8%
Utilities
2.8%
Median
2.8%
Industrial Electronics & Equipment
2.3%
Consumer Products
2.0%
Industrial Manufacturing
1.7%
Retail and Wholesale
1.5%
Food & Beverage Processing
1.3%
Chemicals
1.1%
Construction, Materials & Natural Resources
1.0%
Energy
1.0%
Sources: Morgan Stanley, Bain, LocalGlobe analysis of Gartner and Fortune data.
European businesses on average spend 3% of their turnover on IT.
Industrial sectors have historically spent even less (1-2%). However,
R&D spending is 14x higher in industrial sectors than in services (as a
percentage of output, as per World Bank data), which shows a strong
drive to innovate.
Morgan Stanley estimates that manufacturing will be responsible for
40% of global investment in AI, Autonomous Vehicles, IoT, Industrial
Software, Robotics and Semiconductors in the next decade.
IT spending as % of turnover, by sector
▉ = Industrial sectors
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Europe is well placed to play a
leading role in industrial tech.
PwC survey from 2016
UN and World Bank data.
High export
value-to-output
ratio
Manufacturing sub-sectors by characteristics
Low-skill labor
intensive
Textile, furniture
Capital-intense
regional processing
Oil & Gas, chemicals
Commodity-based
regional processing
Wood, metals,
rubber & plastic,
food
Low export
value-to-output
ratio
High share of
knowledge
worker
Low share of
knowledge
worker
World Bank report “Trouble in the making?” adapted by Dealroom.
High-skill
global innovators
Electronics, pharma
Medium-skill
global innovators
Machinery,
automotive
European
manufacturing
South Korea
Italy
UK
Japan
France
€17K
€12K
€8.0K
€7.8K
€5.5K
€5.3K
Germany
Mexico
China
India
€3.1K
€3.0K
€1.7K
€0.2K
USA
Global rank of manufactured exports per capita
(10 biggest manufacturing countries)
European manufacturing is skewed towards high value add sectors
including machinery, automotive and pharma. These sectors are
characterised by a relatively high share of knowledge workers. The
propensity to optimize productivity through automation and
digitization is therefore high.
Germany, Italy and France are among the biggest exporters per
capita globally, focused on automotive and machinery.

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Industrial tech startup & investment
landscape is maturing
2
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Industrial tech is reaching
critical mass.
% of total European VC
2.4%
2.7%
2014
2015
2016
2017
2018
2019 2020
2.9%
3.0%
European Industrial Tech investment passed €1B for the first
time in 2019 (€1.1B), and is on track for another record year
in 2020, having raised €912M in the first three quarters of
2020.
Industrial Tech investment has grown 8.8x between 2014
and 2020, more than twice as fast as all-industry European
investment in the same period (3.2x).
This growth is fueled by both a rise in late-stage funding in
Industrial Tech, but also an increase in overall deal count.
More companies are getting funded, and the pipeline is
growing.
However, while the growth has been rapid, Industrial Tech
funding makes up just 3.0% of European VC investment.
With Industry contributing 25% of the European economy
(and 30% of the global economy). Therefore Industrial Tech
investment still has significant headroom.
Venture capital investment in European Industrial Tech companies
Estimate
for Q4
€0.3B
€0.6B
€0.8B
2014
2015
2016
2017
2018
2019
2020E
€1.1B
€1.2B
€0.9B
3.2X
2.0%
€0.2B
€0.1B
1.5%
1.1%
8.8x
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Later stage rounds (Series B
and beyond) are starting to
take off.
Scoutbee
$60M
Series B, Jan 2020
Screening Eagle
CHF55m
Apr 2020
SimScale
$29.8M
Series C, Jan 2020
PlanRadar
€30M
Series A, Mar 2020
Wandelbots
$30M
Series B, Jun 2020
Seed
€1–4M
Series A
€4–15M
Series B+
€15M+
9 companies raised €25M+ in the last 12 months, more than any
previous 12 month period. These are the signs of a maturing
industrial tech ecosystem.
Amount invested
Number of rounds
€655M
Seed
€1–4M
Series A
€4–15M
Series B+
€15M+
78
50
22
Reporting lag of
small rounds
€147M
€359M
Venture capital by stage
▉ 2014 ▉ 2015 ▉ 2016 ▉ 2017 ▉ 2018 ▉ 2019 ▉ 2020E
16x
6x
8x
Exotec
$90M
Series C, Sep 2020
SkyCell
$62M
Apr 2020
OTTO Motors
$29M
Series C, Jun 2020
Forto
€25m
Sep 2020
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Germany and France are the
European leaders in both
industry and industrial tech.
France
United Kingdom
Norway
Netherlands
Switzerland
€962M
€857M
€513M
€300M
€163M
€151M
Amount invested since 2015
Germany
Companies with €1M+ in total funding.
Spain
€135M
Belgium
€127M
Ireland
€123M
United Kingdom
France
Switzerland
Netherlands
Nordics
186
183
156
140
72
48
Number of rounds since 2015
Germany
Sweden
47
Spain
44
Denmark
41
Denmark
Belgium
Germany
Switzerland
France
5%
5%
4%
4%
4%
Industrial tech as % of total VC
Norway
Ireland
3%
Spain
3%
Netherlands
2%
Luxembourg
€111M
Belgium
37
United Kingdom
1%
European manufacturing is led by Germany, Italy, and France.
By VC investment in industrial tech Germany and France lead
which corresponds with industrial output. The UK has the
fourth largest industrial output in Europe, but third by
Venture Capital, given its overall larger startup ecosystem.
Germany really stands out: it is responsible for 28% of
European output and also ranks #1 globally by Competitive
Industrial Performance. It’s key manufacturing sectors include
machinery and equipment and automotive.
12%
Italy
France
Spain
Poland
UK
28%
16%
12%
9%
8%
5%
European manufacturing (% of output)
Germany
Other Europe
23%
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  VC INVESTMENT 2015-2020
SELECTED STARTUPS & SCALEUPS
Logistics (incl. warehouse robotics)
Industrial robotics & autonomous vehicles
 
Connectivity and IoT
 
Energy
 
Industrial data analytics
 
Additive manufacturing (3D printing)
 
Advanced materials
 
Customer interaction & marketplaces
 
Industrial drones
Industrial procurement
 Industrial AR/VR
Construction
Simulation & advanced engineering
Industrial cybersecurity
Logistics and autonomous machinery attract the most investment.
€1.2B
€601M
€400M
€359M
€275M
€239M
€231M
€209M
€209M
€159M
€151M
€141M
€85M
€119M
The chart is based on companies with total funding EUR 1M+ (inclusive)
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AI-enabled sourcing and fulfillment automation platform for procurement teams, a
spin-out from University College Cork (UCC). Manages over $90bn in spend annually.
Customers include Siemens, Coca-Cola, BMW and Samsung
●
Competitive supplier bidding
●
Enhances process visibility
●
Boosts speed by eliminating repetitive manual work
●
Manages and mitigates spend risks
Founded: 2013
Location: Cork, Ireland
Valuation: €65-98M
Latest round: $18m Series A in June 2020
Real-time customer & supplier interaction
and 3D manufacturing.
Examples
Customer interaction and
industrial marketplaces
What’s included: industrial customer service
software and marketplace platforms for
industrial use.
Purpose: streamline the process of industrial
supplier/buyer search and management;
enhance customer interaction.
Additive manufacturing
Logistics
Procurement

What’s included: software solutions for
purchasing management that employ novel
technologies and business models.
Purpose: cut purchasing management costs
and boost efficiency by automating
repeatable tasks.
Examples
Examples
Examples
What’s included: solutions across the entire AM
value chain, e.g. engineering and software,
materials and powder technologies, AM machines
and printers, post processing solutions and
services.
Purpose: minimize lead time, simplify inventory
management, cut shipping volumes and costs.
What’s included: both software- and
hardware-focused startups utilizing novel
technologies and/or business models in logistics.
Purpose: boost efficiency in logistics operations,
cut timelines, costs, improve employee safety and
productivity.
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Software-enabled hardware that’s
transforming industrial processes.
Drones & Drone software
AR/VR
Robotics & autonomous
vehicles
Connectivity and IoT
Infrastructure
Examples
Examples
Founded: 2015
Location: Croix, France
Valuation: €327—491m
Latest round: $90M Series C in Sept 2020
Intelligent intralogistics systems based on fleets of robots operating in three
dimensions. Clients include Cdiscount, L.Eclerc, Carrefour, XPO Logistics,
showroomprive.com.
●
Cuts order preparation time
●
Lowers energy consumption & environmental footprint
●
Improves employee productivity & safety
●
Operates 24 hrs per day
●
Fast and flexible to set up and extend
Examples
Examples
What’s included: both software and hardware
solutions that use AR/VR technology applied to
industrial settings.
Purpose: boost efficiency of industrial operations,
from eliminating errors with high-precision
real-time inspections, to enabling knowledge
transfer with immersive employee training.
What’s included: drones for logistics and heavy
industrial applications, as well as related software.
Purpose: enable automation, from goods
transportation in logistics to industrial site
supervision.
What’s included: solutions that enable
connectivity on the shopfloor and in logistics,
both software and hardware.
Purpose: enable real-time critical asset visibility
to predict failure points, control quality & extend
asset lifetime.
What’s included: autonomous vehicles for
industrial use, industrial robots and related
software.
Purpose: automate industrial processes, from item
transportation, sorting, to high-precision complex
electronics assembly.
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Software to improve industrial process
efficiency.
Cybersecurity
Data analytics & predictive
algorithms
Simulation & advanced
engineering tools
Examples
Examples
Founded: 2016
Location: Stavanger, Norway
Valuation: $33-50M
Latest round: NOK75m Series B in Sept 2020
Data-driven analytics for geoscience powered by AI and machine learning.
●
Provides decision-makers with data-driven support to increase
operational precision
●
Cuts project time and costs
●
Improves communication between project stakeholders with interactive
data visualizations
Examples
Advanced materials
Examples
What’s included: industrial data analytics,
predictive maintenance and process parameter
optimization tools.
Purpose: analyze massive amounts of industrial
data and make predictions that drive positive
business outcomes.
What’s included: cybersecurity solutions with
the focus on industrial space.
Purpose: ensure asset availability and mitigate
risks by protecting critical assets from cyber
threats.
What’s included: solutions for mathematical
modelling of real-world systems.
Purpose: test and optimize industrial system
performance at a design / redesign stage, to cut
time and costs.
.
What’s included: novel materials with unique or
enhanced properties relative to conventional
materials, and related processing technologies.
Most startups here have hardware characteristics.
Purpose: provide more robust, lasting, and often
more sustainable alternatives to traditional
materials.
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Founded: 2018
Location: Munich, Germany
Valuation: $44-66M
Latest round: €11m Series A in March 2020
Predictive battery analytics software based on digital twins.
●
Optimizes complex battery systems with digital twin based predictive
analytics
●
Accelerates transition to green energy
●
Flexible, configurable, highly accurate and easy to deploy
Novel technologies reshaping traditional
industries.
Construction
Examples
Energy
Examples
What’s included: startups utilizing novel
technologies and business models in construction.
Purpose: boost construction process efficiency,
from enhancing precision, cutting costs and
timelines, to improving collaboration,
communication and worker safety.
What’s included: novel solutions along the energy
value chain. Although a lot of solutions here have a
hardware angle, the report focuses on software
and IoT-enabled software tools.
Purpose: enable efficiency and sustainability
across the value chain with advanced analytics,
simulations predictive insights
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Industrial tech Startups in
Speedinvest portfolio.
Speedinvest - the VC for European Industrial Tech
Startups.
View Speedinvest on Dealroom
€405M
Estimate
for Q4
Schüttflix
Digital marketplace for bulk
construction supplies
TWAICE
Digital-twin based industrial solutions
Pylot
Teleoperation platform for fully
driverless vehicles
Greyparrot
AI-based waste recognition
Celus
AI-based electronics engineering
platform
Remberg
Cloud-based asset relationship
management system
Corrux
Analytics for industrial equipment on
the construction site
Meisterwerk
Field Service Management solution
focused on craftsmen
Aucobo
Industry Wearable Platform for the
manufacturing industry
Xapix
Data integration and orchestration
platform
Conundrum
Predictive maintenance and quality
control software
Crate.io
Database for industrial IoT
Metis Labs
Software to boost performance of
industrial processes
Drag&Bot
No-Code robot programming
solution
Senseforce
Machine data management solution
Prewave
Supply chain and sustainability risk
predictions
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VC landscape and M&A activity
3
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Known dedicated industrial tech focus
Other relevant investors

2 226 Top universities & 3K+ (1) research centers
Source: Dealroom.co
279 Seed
stage startups
Avg team
size: 23 people
Pre-seed stage startups
84 Series B+
startups
Avg team size:
120 people
162 Series A
stage startups
Avg team
size: 47 people
European VC firms at each stage have started to create dedicated
industrial tech focus, which is key to the maturing of the ecosystem.
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Many of Europe’s Industrial Tech companies are
supported by the continent’s leading Universities
and Research Institutions.
Countries
Universities/
Research
Centres
Startups
View all spin-offs on dealroom.co
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Numerous major global industrial consolidators,
keen to innovate through investment and M&A.
HQ
Market cap.
Selected industrial tech investments
Selected industrial tech acquisitions
South Korea
€294B
Grabit, nuTonomy, Filament, Vinli
ZHilabs
Germany
€95B
Sennder, Skydio, Seeq, Varjo, Turvo, Markforged,
Wandelbots, Gecko Robotics, Veo Robotics
Mentor Graphics, Mendix, iMetrex Technologies
Netherlands
€85B
InstaFreight, Sense Photonics, Osprey Informatics, SteamaCo
-
France
€79B
SHYFT Power Solutions, Hyzon Motors
G2MOBILITY
Germany
€73B
Hubject, Northvolt, Trinamic Microchips
Volvo WirelessCar
Germany
€52B
ChargePoint, FleetMaster, Starship Technologies, Vantage
Power, Hubject
Torc Robotics, Fleetboard
Germany
€52B
BigRep, Pulisheng Electromechanical Technology
Cloudfarms, Sculpteo
US
€43B
Bridgit, UrbanSim, Modbot, Rhumbix, Vela Systems
Pype, Gentry Systems, Micro Application Packages,
EAGLE Software, netfabb
France
€42B
InfoVista, Gehry Technologies, NuoDB
IQMS Software, Ortems, ICEM Surf, Next Limit Dynamics,
Exa Corporation, Centric Software, SquareClock
Germany
€23B
ShieldIOT, weAre, GreenCom Networks
Recargo
Germany
-
FogHorn, Poka, Xometry, TrunkTech, Sensoro
ProSyst, GFR
M&A powered by
www.flowpartners.io
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Corporate Venture arms are active across different industrial sectors.
Accelerator
Seed
Series A+
Transportation
Agritech

Electronics
Chemicals
Semiconductors
Energy
Fintech
Consumer goods
Industrial automation
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This year, NEA has already invested in
startups providing automation and
optimization solutions for logistics
(Berkshire Grey, ClearMetal). Are there
any other niches
in
logistics
/
warehousing automation that you find
especially promising and interesting
from the investment perspective?
We’re excited to be partnering with
game-changing logistics platforms like
Berkshire Grey, ClearMetal, Outrider, and
Upskill and we think there is always more
work to be done in optimizing modern
logistics!
Consumer demand for a clean and
efficient supply chain is growing rapidly
alongside the rise of ecommerce, but
logistics software and hardware
is
evolving at a startling rate to meet that
demand. A
few areas
that we’re
particularly focused on at the moment
include warehouse robotics, third-party
“In our experience, Europe is a fantastic ecosystem for
industrial tech. European markets bring to the table deep
technical expertise from top universities and some of the
world’s largest industrials companies.”
logistics (3PL) stacks, last-mile delivery,
and supply chain sustainability.
Some time ago, NEA invested in the
European
industrial
IoT
company
Konux.
With
mostly
US-based
companies in your portfolio, what has
been the major reason behind investing
in
Konux?
Our team at NEA looks to invest in
best-in-class companies that are creating a
vital change in the world. Although the
majority of NEA’s investments are based in
the US, we have always invested globally
when we identify special companies.
Konux is one of those companies marrying
a massive market with differentiated
technology and a fantastic team. The
company
is
tackling
predictive
maintenance for railroad switches with
cutting edge sensor technology and a
robust AI platform to interpret sensor data
holistically in real-time.
Visit NEA on Dealroom.co
Jordan Shapiro
Associate, Software & Services,
Consumer & Internet
A few areas that we’re
particularly focused on at
the moment include
warehouse robotics,
third-party logistics (3PL)
stacks, last-mile delivery,
and supply chain
sustainability.
‟
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One of the most critical criteria for a firm
like NEA is thinking big. When we make
an investment in a new company, we
need to believe there is a (multi-)billion
dollar outcome in that company’s future.
Especially
given
the
inherent
fragmentation of markets in Europe, we
always look for a market expansion plan
that allows companies to reach massive
scale. The intricacies of which markets to
launch, how to sequence those launches,
how you’re building your product to
apply to those markets, and how you
expect to grow market share are all
important details to have ironed out
before engaging with a global firm like
NEA.
How is Covid-19 impacting industrial
tech startups? What opportunities and
what challenges has it brought? What
factors do you consider the main
determinants of industrial tech startup
resilience?
COVID-19 has caused many industrial
customers to reevaluate their supply
chains and technology stacks. At the
onset of the pandemic, a series of
lockdowns impacted companies with
single-source, globalized supply chains
and
reinforced
the
importance
of
redundancy and local production.
Meanwhile,
manufacturing
and
construction businesses redoubled their
efforts around safety standards and
automation to reduce health risks in their
operations.
Although we saw many customers halt
their operations and purchasing at the
start of the pandemic, we think there is
renewed interest and opportunity
in
products that can help to manage
increasingly complex supply chains, safety
regulations, and automation schema.
Industrials
have
always
been
the
cornerstone
of
our
societies
and
economies, and we expect the space to
rebound with full force as we continue to
combat COVID-19.
We continue to be bullish on Konux’s
progress
and
potential.
How does European industrial tech
startup ecosystem look from the
US-investment perspective? An how
compared to those of the USA and
China?
In our experience, Europe is a fantastic
ecosystem for industrial tech. European
markets bring to the table deep technical
expertise from top universities and some
of
the world’s
largest
industrial
companies. This proximity matters - in
many cases, we see European companies
have an edge in finding design partners
and discovering early product-market fit
(especially common for manufacturing
companies). There is some associated
risk of developing a product that so
specifically meets the need of a single
OEM that it doesn’t apply to the broader
market, but companies can mitigate this
risk by starting conversations with
multiple strategic partners early in their
development processes.
What criteria should a European
industrial tech company follow to look
attractive to NEA from the investment
perspective?
Portfolio of 590 + companies
$20 billion in committed capital
230+ IPOs, 390 mergers and acquisitions among
portfolio companies
Latest fund size: $3.6b (Mar 2020)
Page / 32
Two incumbent industrial tech
corporates merging
Integration of Aveva’s engineering software with OSIsoft’s
data, modelling & analytics software and cross-sell
customer synergies
Enterprise tech player bolstering its
industrial tech capabilities
TeamViewer enriched its enterprise-focused industrial
offering by integrating its software platform with Ubimax’s
AR and IoT technology
Industrial IoT add-on for insurance
industry giant
Munich Re improves its telematics insights (car sensors) and
risk services (through IoT sensors installed at commercial
locations)
British engineering IT software provider
to the plant, power and marine industries
German software provider for remote control,
Desktop sharing and connectivity
German reinsurance corporation and one
of the world’s biggest reinsurers
August 2020
$5bn
July 2020
$156m
Sept 2018
$300m
American software platform for aggregation
and visualization of real-time industrial data
German industrial wearable IoT devices
and augmented reality solutions
German enterprise middleware and IIoT solutions
for digital transformation
Industrial tech M&A is heating up, from inside
the sector, and from outsiders moving in.
M&A powered by
www.flowpartners.io
Page / 33
European industrial tech is generating significant exit success stories.
Buyer
Target
Prior funding
Valuation
(LTM revenue multiple)
Date
Aveva
Osisoft
Application software for real-time data management | San Leandro, USA
€127M funding from Technology Crossover Ventures, Kleiner
Perkins, Softbank
$5B (6.6x)
Acquisition
Aug 2020
Siemens
Mendix
Low-code software to develop apps for industrial use | Rotterdam,
Netherlands
€34.5M funding from HenQ, Prime Ventures, Battery Ventures
€628M
Acquisition
Aug 2018
Hoffmann
Group
Contorion
Marketplace for industrial supply | Berlin, Germany
Funding from Project A, Endeit Capital, Bauer Venture
Partners, Kloeckner Ventures
$136M (6.0x)
Acquisition
Jun 2017
Munich Re
Relayr
Enterprise middleware and IIoT solutions | Berlin, Germany
€63.4M funding from Rembrandt Venture Partners, Kleiner
Perkins, Deutsche Telecom and others
$300m
Acquisition
Sep 2018
Teradyne
Universal Robots
Collaborative robotic arms for production environment | Odense, Denmark
Funding from Vækstfonden and Enrico Krog Iversen
$285m
Acquisition
May 2015
Teradyne
Mobile Industrial Robots
Collaborative, autonomous mobile robots | Odense, Denmark
Funding from Innovation Fund Denmark, Torben Frigaard
Rasmussen, Thomas Visti Jensen and others
$148m
Acquisition
Apr 2018
ForeScout
Security Matters
Network monitoring, intelligence, and protection technology | Eindhoven,
Netherlands
€4.5M funding from Emerald Technology Ventures, KPN
Ventures, Robert Bosch Venture Capital, Phoenix Contact
Innovation Ventures
$113m
Acquisition
Nov 2018
-
Prodways
Industrial 3D printers | Les Mureaux, France
€64.5M from Bpifrance, Fimalac Group, Safran, BNP Paribas
Développement, Groupe Gorgé
€58.4m
IPO
May 2017
Wartsila
Eniram
Technology to reduce fuel consumption for the maritime industry |
Helsinki, Finland
€10M funding from Conor Venture Partners, Ferd Venture,
Finnish Industry Investment
€43m
Acquisition
Jun 2016

Page / 34
Consolidation continues in European logistics M&A.
Buyer
Target
Prior funding
Valuation
(LTM revenue multiple)
Date
Sennder
Uber Freight Europe
European freight division of Uber | Amsterdam, Netherlands
Uber
$1.1B
Acquisition
Sep 2020
Porsche
PTV Group
Software for traffic management and transport logistics | Karlsruhe,
Germany
-
$338M (2.6x)
Acquisition
Jun 2017
Continental
Zonar Systems
Tech provider of smart fleet management, 81% acquisition | Seattle, WA
€45.5M funding from Daimler and Continental Tire
$280m
Acquisition
Oct 2016
Investcorp
ABAX
Fleet tracking, equipment & vehicle control systems | Larvik, Norway
-
$210M (4.1x)
Acquisition
Jun 2017
FedEx
P2P Mailing
Global e-commerce transportation solutions provider | Basildon, UK
-
$£92M
Acquisition
Mar 2018
-
Balyo
Robotic solutions for the automated transportation of pallets |
Ivry-sur-Seine, France
€10 funding from Bpifrance, Seventure Partners,
Robolution Capital, Linde Material Handling & Amazon
€39.8m
IPO
Jun 2017
Elemica
Eyefreight
Provider of transportation management systems | Bunnik, Netherlands
-
Acquisition
Jan 2020
PostNL
CheapCargo.com
Shipping marketplace | Nijmegen, Netherlands
€0.5M funding from Peak Capital
Acquisition
Nov 2017
Gefco
Chronotruck
Logistics platform for freight transport | Paris, France
€3.5M funding from Bpifrance and Seventure
Partners
Acquisition
Jul 2019
Page / 35
Heavy equipment
Diversified industrials
$58B
Transport
$397B
Leading incumbents in selected key industries
(sorted by market cap).
Industrial software
Oil, gas & chemicals
Industrial robotics
SAP
Autodesk
Dassault Systemes
Synopsys
Cadence
ANSYS
Hexagon
Trimble
AVEVA
PTC
Pharma & medical
$192B
$51B
$50B
$33B
$30B
$29B
$26B
$13B
$10B
$10B
Danaher
Honeywell
Siemens
3M
General Electric
Emerson
Schneider Electric
Rockwell
Sandvik
Saint-Gobain
$158B
$122B
$112B
$97B
$60B
$42B
$33B
$28B
$25B
$24B
Johnson & Johnson
Roche
Novartis
Merck & Co.
Pfizer
Abbot Laboratories
AbbVie
AstraZeneca
Sanofi
GlaxoSmithKline
Bayer
$394B
$303B
$218B
$204B
$204B
$193B
$155B
$142B
$128B
Tesla
Toyota
Lockheed Martin
Boeing
Raytheon
Volkswagen
Airbus
Daimler
BMW
General Motors
$186B
$109B
$95B
$93B
$85B
$62B
$62B
$49B
$46B
Saudi Aramco
Exxon Mobil
Chevron
CNPC
Royal Dutch Shell
Total SA
Sinopec
BASF
BP
Gazprom
$2,110B
Nestlé
Coca-Cola
PepsiCo
Unilever
AB InBev
Mondelez
Heineken
ChemChina
Danone
DuPont
Dow Inc.
$344B
$219B
$192B
$162B
$100B
$82B
$55B
Caterpillar
John Deere
Volvo
Hitachi
Sany
Komatsu
Zoomlion
XCMG
Doosan Infracore
Terex
$86B
$73B
$40B
ABB
FANUC
DENSO
Omron
Yaskawa
EPSON
Duerr
Kawasaki
KUKA
Nachi-Fujikoshi
$39B
$36B
$16B
$11B
$4B
$2B
$2B
$2B
$1B
$150B
$146B
$106B
$104B
$94B
$66B
$60B
$59B
$52B
$45B
$33B
$32B
$22B
$9B
$6B
$2B
$2B
$50B~
$36B
$43B
Food & agriculture
$93B
$52B
M&A powered by
www.flowpartners.io
Page / 36
A closer look at logistics
4
Page / 37
Logistics is a €6 trillion
global turnover sector.
North America
Europe
Rest of the World
€2.5T
€1.5T
€1.1T
€0.8T
Global logistics turnover in 2019
Asia
Transport Intelligence 2018 data and 2019 estimate by Dealroom. Eurostat
Logistics is one of the largest sectors. In Europe alone, the
industry turns over €1.1 trillion per year (Transport Intelligence).
According to Eurostat, 11.5 million are employed by the sector. A
recent TradeLink press release noted: “close to 1 billion truck
deliveries cross Europe every year. The industry is also highly
fragmented. The top 10 logistics companies only account for
11% of the overall market. Germany alone is home to 14,800
forwarding companies.”
Technology and global markets have transformed the consumer
and corporate requirements of logistics, but technology is also
transforming logistics itself. As a huge complex industry, and
innovation growth area, startups are addressing six distinct
segments of logistics: supply chain management (incl. TMS, risk
and data management), tracking and real-time visibility, freight
forwarders and shipping automation, Ecommerce logistics,
procurement, and fleet management.
Warehousing
Water
Air
39%
35%
9%
9%
European logistics turnover by modal
Land and pipelines
Postal and courier
8%
France
Italy
Spain
25%
16%
12%
8%
Germany
Netherlands
6%
European logistics turnover by country
Page / 38
For this report, we’ve indexed 108 European logistical tech companies
with at least €1M in venture capital funding, across 13 core segments.
  VC INVESTMENT 2015-2020
NOTABLE COMPANIES
Freight forwarding
Warehouse automation
 

Ecommerce logistics
 
Tracking and visibility
 
Autonomous delivery
 
Supply chain management
 
Pallet and container tech
 
Freight marketplaces
 
Logistics procurement
Logistics drones
On-demand storage

Cargo bikes

Parcel lockers
€278M
€216M
€199M
€127M
€85M
€68M
€66M
€58M
€54M
€23M
€5M
€5M
€2M
Page / 39
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What key
trend do you
see
in
intralogistics / warehouse automation?
One big trend from the US is so-called Micro
Fulfillment - fulfillment of online orders, e.g.
groceries, processed close to the customer
with a high degree of automation. High
urban real estate costs and limited storage
capacities mean Micro Fulfillment Centres
are typically located directly in an existing
supermarket or store. However, Micro
Fulfillment will always need a backend of
big distribution centres (DC) to deliver
products
to
them
in
time.
In general, over the last decade automation
has happened to a much higher degree in
Europe than in the US, due mainly to the
differing availability of manual work forces.
What impact has Covid-19 had?
E-commerce is the big winner of Covid-19.
The transition from shop delivery to
e-commerce fulfillment is one of the biggest
goals for many companies.
“Robots will do even more of the reiterating work in
warehouses, but humans will always be needed in other
fields, where human advantage and
judgement
is
required.”
But technologies
like UV-C disinfection
enabling Covid-safe manual workplaces are
also a growth space.
What are the hottest trends and most
high-potential technologies in warehouse
tech?
One big trend is data driven logistics and
artificial intelligence (AI). Not everything
needs to be AI-powered, but taking large
amounts of data and using it to make the
right decisions will have a huge impact on
optimizing and improving warehouses over
the next years. AI will be a major part of this.
To make this possible, the merge of the
typical software layers in the warehouse is
mandatory. The control layer and the stock
layer need to be embedded into one decision
layer.
The field of robotics in goods-to-person
systems will also get a boost with AI and the
data behind. Robots will do even more of the
reiterating work in warehouses, but humans
will always be needed in other fields, where
human advantage and judgement is
required,
e.g.:
value-added
services,
monitoring,
decision
making
and
maintaining the system. It will be a
productive coexistence of intelligent work
for humans and simple and reiterating work
for robots.
What are the ways for a company to
minimize risk and costs while automating
the warehouse / intralogistics
operations?
Simulations have already been used for
years to understand and optimize the
logistics. Digital twins are a big success
factor when
it
comes
to
reducing
installation times on site and testing a
system in an early project stage.
BPMN (Business, Process, Model and
Notation) is one key to better understand
the processes and specify the needs for a
customer. Based on BPMN software,
simulations are available very early in the
project phase to test the integration of the
warehouse
with
ERP
systems.
Peter Puchwein
Vice President Innovation
Visit Knapp on Dealroom.co
Page / 40
Logistics startups are using bleeding edge deep
technologies, often in combination, to address
pain points in the existing logistics industry.
Robotics tech is getting more commonly
adopted in warehousing and intralogistics,
mainly
for moving and handling
items.
Examples include robot fleets that move heavy
items autonomously, automated storage and
retrieval systems, advanced conveyor systems,
as well as robotics grippers for item sorting and
picking.
AR / VR tech is used in smart glasses to assist in
warehouse management.
LiDAR is built into autonomous vehicles and
robots.
And while not directly addressing logistics, 3D
printing is targeting supply chain disruption.
The future of warehouses could be virtual - a
databases of virtual parts, printed on demand
and delivered through last-mile delivery.
The logistics stack - the deep technologies
powering logistics.
Big data
AI &
analytics
IoT / sensors
Robotics
Computer
vision
AR/VR
Autonomous mobile
robots for warehouses
Autonomous picking
robots
Autonomous drone
deliveries
Autonomous delivery
in urban spaces
Collaborative platforms
Risk management
Predictive planning &
supply automation
Indoor navigation
software
Smart glasses
Connectivity on
the shopfloor
Real-time visibility
platforms
Smart conveyors
Autonomous storage systems
and robotics fleets
Remote guidance
Smart container
technology
Robotic end-of-arm
tools
Robotic
components
AR instructions
Predictive
maintenance
3D vision cameras
for item inspection
Page / 41
Logistics tech investment is
growing at a rapid pace.
View European industrial tech investment on Dealroom.co
€63M
€170M
€138M
2014
2015
2016
2017
2018
2019
2020E
€352M
€496M
€31M
€15M
Visit the platform
€405M
Estimate
for Q4
The chart is based on companies with total funding EUR 1M+ (inclusive)
32x