1.
Manufacturing the Future
Perspectives from an Early Stage Investor
April 2019
© 2019, Amazon Web Services, Inc. or its Affiliates.
Robin Dechant
3rd of April 2019
Manufacturing the Future
Point Nine Capital

2.
Industrial
SaaS - Data & ML
SaaS - Dev Tools
SaaS - App. Layer
VC firm
Marketplaces
Early-stage (100k-1.5m€), +150m€ in funds
90+ portfolio companies, 20 countries
Berlin-based
You?

3.
From an investor’s point of view - Manufacturing is
one of the last bastions of Enterprise SaaS.
Source: https://formation8.com/resources/the-smart-enterprise-wave/

4.
New companies are trying to reinvent the Factory
Stack.
Industry 4.0 is not really about
replacing machines and
equipment but about leveraging
software, exploiting the captured
data and making machines and
human workers smarter and
more efficient.

5.
This led to strong growth in 2018 and many new
companies that are attacking this sector.
2017

6.
This led to strong growth in 2018 and many new
companies that are attacking this sector.
2018

7.
… and employees of German industrial companies
leaving to start their own business.

8.
If data is the new oil, manufacturing has 2x than
any other industry.
Source: GP Bullhound, Morgan Stanley

9.
The race for Manufacturing Analytics is real.

10.
And there is increasing interest from investors - the
funding climate is in favor for Entrepreneurs.
new dedicated
funds in Europe
big funding
rounds in Europe
more interest form
later stage VCs
notable exits
$300M by MunichRe
$700M by Siemens
$6.8M by EQT
$8M by Atomico
€80M fund I
€25M fund I

11.
However, raising a lot of money does not
guarantee success.
https://www.therobotreport.com/rethink-robotics-shutdown/
raised $150M

12.
And we’re still at a very early phase with a lot of
hype and many startups exist for only a few years.
Source: Gartner Hype Cycle for Emerging Technologies

13.
They need adoption. But nobody gets fired for
buying SAP (yet).
+
McKinsey project for 6 months
Build an internal innovation unit
1-2 Acqui-Hires
100 pilots á 100k
Risk?
Theoretical
example: What
to do with a
€10M budget?

14.
And the pilot purgatory is a fact. Many startups
end up in the innovation-friend zone.
Founders
one-sided knowledge transfer
little budget
you end up thereyou want to sell here
end-user
buying center
budget
product champion
little progress after pilot

15.
Also, it’s still pretty hard for startups to sell to mid-
sized manufacturers („Mittelstand“).
Handholding needed
less economical pressure solution readiness
products to complex

16.
Many of them are simply not ready (yet).
What is the
scope of digital
technologies
you use on your
factory floor?
Source: E&Y
46%

17.
Therefore, startups biggest competitor isn’t
another company … it’s the status quo.
Early
Market
Mainstream
Market

18.
And we have to change the status quo.
Because there is …
• Shortage of Talent.
• Outsourcing reaches
limitations.
• Increasing competition
worldwide.
… we need to take more risks and commitment
• Have a vision how to digitize your business.
• Have clear guidelines and processes in place how
to work with startups.
• Don’t be afraid to invest in companies or even
acquire them.
• Constantly learn and reinvent ourselves.

19.
„If you went to bed last night as an industrial
company, you’re going to wake up today as a
software and analytics company.“
Jeffrey Immelt
Good Morning.

20.
Thank you.
robin@pointninecap.com @robindchnt www.pointninecap.com https://medium.com/point-nine-news
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© 2019, Amazon Web Services, Inc. or its Affiliates.© 2019, Amazon Web Services, Inc. or its Affiliates.
Robin Dechant
Point Nine Capital
robin@pointnine.com
www.pointninecap.com
Twitter: @robindchnt
Newsletter: http://bit.ly/2FSUHfr