After a few months of reflecting on and redefining my investment thesis, I put together a short overview of what global challenges keep me busy these days and what I double down on. Given what’s happening in the world, and I do not mean only this year when we face the ‘nobody knows how long slowdown,’ recession, collapsing of crypto (or at least losing a lot of value), and job market restructuring the way it works and testing with how fewer people it can sustain. For VC, it’s already been at least three years of uncertainty, redefining values, and re-prioritizing markets we want to invest in. We learned how to invest ‘online’ and trust people on the screen. We learned to keep ourselves accountable without interacting all day long and effectively supporting companies from a distance.
So, what’s next, or perhaps what has always been at the forefront of my mind but is now more than ever the focus of my investment efforts? I do not pay much attention, nor am I good at the gaming and entertainment industries, even if the investment opportunities in those markets have been historically terrific. I feel like we cannot move forward and focus on the top level of Maslow’s pyramid while the needs at the very bottom are still unsatisfied. I’m strongly convinced that spending time supporting founders who build solutions for heavy industries, which equip people with technology and free up human potential, makes the most sense to me from a personal perspective as well as from the investment opportunities point of view. Too many people are still doing things they shouldn’t be doing nowadays. We invented a lot of ‘smart techs,’ and we should put them to work so they do mundane, physical, and repetitive things. Industrial Tech is the space I see the greatest potential for markets to grow and develop as we progress with all other industries. It’s the very beginning of the supply chain and the starting point for all other sectors:
- We cannot recycle if we do not produce,
- We cannot have electric cars or planes if we do not have components or infrastructure adequately built,
- We cannot eat clean if we do not produce and grow sustainably,
- We cannot build prefab buildings if we do not have materials and parts,
- We cannot bring robotics to construction fields if we do not have hardware manufactured,
- We will not get to #netzero if we don’t start from the bottom and fix problems at the very beginning of the supply chain,
- We cannot produce efficiently if we do not optimize production lines, take care of people, and make the manufacturing work more attractive, safe, and rewarding than it is now.
- We cannot rely on utilizing people anymore, as the labor shortage in manufacturing is in a really bad state. Over the next decade, 4 million manufacturing jobs will likely be needed, and 2.1 million are expected to go unfilled if we do not inspire more people to pursue modern manufacturing careers. Already, now 75% of factories in the US are struggling to hire and retain quality operators.
We see that there are billions of dollars dedicated to supporting the development of those industries, but there is still a lot of work to be done in #industrialtech and its sub-verticals.
If you are building or investing in those markets or just want to talk about #americandynamism #industrialtech #contech #manufacturing #climatetech or simply where the word is going, my DM is always open!
If you are curious about how ChatGPT defines Industrial Technology, here it is 🙂
‘Industrial technology refers to the application of technology in manufacturing and other industrial processes. It includes a wide range of technologies, such as automation, robotics, computer-aided design (CAD), and data analytics.
Some of the key benefits of industrial technology include:
- Increased efficiency: Industrial technology can help streamline production processes and reduce the need for manual labor, leading to increased efficiency and productivity.
- Improved quality: Industrial technology can help ensure that products are made consistently and to a high standard, reducing defects and improving quality.
- Cost savings: Industrial technology can help reduce the cost of production by reducing the need for labor and materials, as well as by improving efficiency and reducing waste.
- Increased flexibility: Industrial technology can help manufacturers quickly and easily adapt to changing market conditions and customer demands.
Overall, the use of industrial technology can help companies remain competitive in today’s global market by improving efficiency, reducing costs, and increasing the quality of their products.’
