Although it’s a large sector in the midst of change, production is often neglected by early-stage financiers. We surveyed leading VCs in the market to gather their point of views on the opportunities and difficulties facing manufacturing.
Generally, manufacturing business are capital-intensive and can be sluggish to implement new innovation and processes. The investors in the survey listed below acknowledge the enduring barriers dealing with founders in this area, yet they see big opportunities where startups can challenge incumbents.
These investors kept in mind that the pandemic is bringing overnight change in the manufacturing world; old rules are being reworded in the face of worker security, remote work and the need for increased automation. According to Eclipse Ventures founder Lior Susan, “COVID-19 has exposed the systemic vulnerabilities intrinsic to producing and supply chain and, as such, considerable opportunities for development. The market was lukewarm for a long time– it’s time to turn up the heat.”
What patterns are you most delighted about in producing from an investing point of view?
Digital solutions that use makers higher dexterity and strength will become significant locations of focus for investors. For instance, manufacturers still reliant on manual assembly were not able to develop items when factories closed due to the coronavirus lockdown. While nothing would have kept production at 100%, the capability to rapidly pivot and engage software-defined procedures would have enabled production lines to continue constructing with a skeleton team (particularly crucial for any center required to implement social distancing). Such systems have remote monitoring abilities and computer system vision systems to flag defeats in real-time and stop production if necessary.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.