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#News(General) [ via IoTForIndiaGroup ]
There are nearly 300 industrial-focused companies within the Fortune 1,000. The medium revenue for these economy-anchoring firms is nearly $4.9 billion, resulting in over $9 trillion in market capitalization.
Just how active is the sector now?
https://venturebeat.com/wp-content/uploads/2019/01/number-of-deals.jpg?resize=507%2C322&strip=all?w=507&strip=all
Last year nearly $6 billion went into Series A, B & C startups within the industrial, engineering & construction, power, energy, mining & materials, and mobility segments. Venture capital dollars deployed to these sectors is growing at a 30 percent annual rate, up from ~$750 million in 2010.
And while $6 billion invested is notable due to the previous benchmarks, this early stage investment figure still only equates to ~0.2 percent of the revenue for the sector and ~1.2 percent of industry profits
Some conclusions
• Dollars invested as a portion of industry revenue and profit allows for further capital commitments.
• There is a growing appreciation for the industrial sales cycle. Investor willingness to wait for reduced risk to deploy even more capital in the perceived winners appears to be driving this trend.
• Entrepreneurs that can successfully de-risk their enterprise through revenue, partnerships, and industry hires will gain access to outsized capital pools. The winners in this market tend to compound as later customers look to early adopters
• Uncertainty still remains about exit opportunities for technology companies that serve these industries. While there are a few headline-grabbing acquisitions (PlanGrid, Kurion, OSIsoft), we are not hearing about a sizable exit from this market on a weekly or monthly cadence. This means we won’t know for a few years about the returns impact of these rising valuations. Grab your hard hat!
*Data pulled from Pitchbook
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