In addition to the very large DAX companies such as Bosch, Siemens, and Allianz, several promising young 'smart manufacturing' companies have already settled in the startup hotspot of Munich, bringing profound innovation to the manufacturing sector. Venture investors worldwide have invested more than 5.9 billion euros, and the capital has not gone unused.
Smart Manufacturing is one of the world's most dynamically growing markets. Between 2017 and 2018, IT spending by industrial OEMs (Original Equipment Manufacturers) was €713 billion, and by 2025, €75 billion is expected. IoT (Internet of Things) devices or sensors will be installed in smart factories. Startups with an Industry 4.0 focus received over €5.9 billion in global venture capital in 2018. And worldwide, investments in smart manufacturing increased 14-fold between 2013 and 2018. Now is the perfect time for investors to take a closer look at the industry's most promising startups.
Connected industry — these startups help companies keep track
Munich is a pioneer, especially in the field of smart manufacturing, and boasts several exciting startups. These young companies are working at full speed on new solutions for industry. They help other companies maintain a clear overview and plan and work efficiently in an increasingly connected world. Major brands such as BMW, Continental, and L'Oréal have long recognized the potential of these young IIoT (Industrial Internet of Things) players and are already collaborating with them in one form or another.
Investors should definitely keep an eye on these five successful startups:
Celonis — Big Data for Process Mining
Celonis has developed a big data technology that enables companies to visualize and analyze their business processes, also known as process mining. In 2015, Celonis was ranked as the fastest-growing technology company in Germany with almost 4,000 percent sales growth within four years as part of the Deloitte Fast 50 Awards. In 2018, the Munich-based startup received Financing round 50 million US dollars and rose to become a Unicorn.
Celonis is now the world's leading provider in the field of process mining. Celonis's success seems to be continuing: the company hasn't ruled out an IPO in the coming years. Celonis's well-known customers include Vodafone, Honeywell, Siemens, L'Oréal, and Uber.
Konux — smart sensors, data fusion and AI-based analytics for Deutsche Bahn
The combination of smart sensors, data fusion and AI-based analytics helps railway operators such as Deutsche Bahn to increase the availability of their assets and make maintenance more predictable. The Konux system monitors and analyzes continuously monitors the condition of important switch components, such as the track bed, and provides specific recommendations. This enables significantly more efficient maintenance, as infrastructure managers can predict failures early and plan the type and duration of the necessary measures. In the last The startup received 30 million euros in the Series B roundProminent investor Alibaba participated in the round. The company plans to go public in 2022.
Riskmethods — AI for risk minimization in global supply chains
The IIoT startup Riskmethods has set itself the task of minimizing risks in global supply chains through the use of AI. The startup's AI processes millions of data sets and checks them for relevant events that could impact supply chains. Riskmethods thus supports companies in proactively identifying supply chain risks, assessing the extent of damage, and taking appropriate measures. The Munich-based startup has been able to already collected 20 million eurosInvestors include the Digital Growth Fund and the Bavarian Growth Fund. Well-known names such as Bosch, Swisscom, and Huawei are already customers.
Germanedge — Efficiency for the networked production world
The Munich startup Germanedge is a consortium of five providers of Management Execution Systems (MES) and Advanced Planning Systems (APS). The IIoT startup develops software that enables its customers to design intelligently connected production environments more efficiently. The company generates annual revenue of more than €40 million. Its customers in Germany, Belgium, the USA, and China include BMW, Daimler, and Continental.
Workerbase — Smartwatch for Industry
The Munich startup Workerbase has a Manufacturing Workflow Platform for efficient manual work processes in industry. These are then transferred into digital workflows for mobile devices and wearables, such as the specially manufactured smartwatch for industrial use. In addition, manufacturing apps can be created that are connected to an IoT backend. Workerbase is supported by venture capital funds and a team of experienced business angels.
Demand for efficient technologies is increasing
Especially in a world that is becoming increasingly interconnected, the demand for new, efficient technologies and solutions is increasing in order to maintain an overview, keep pace, and avoid losses. This is also shown by the figures from the GP Bullhound recently published its first 'Smart Manufacturing' report'Smart manufacturing' startups are therefore more in demand than ever and will remain so for a long time to come. It is therefore worthwhile for investors to keep an eye on the scene and invest now in the future of the networked industry.
