When we talk about innovation in the industrial sector, we immediately think of “industry 4.0”, the “fourth industrial revolution” or the “industrial internet of things”. These buzzwords are intended to describe a major shift across the sector, marrying the agility of digital information technology with the power of industrial manufacturing. This combination promises to bring more efficiencies, leveraging developments like artificial intelligence (AI), big data analytics, blockchain, 3D printing and others.
More digitisation of industrial activities is imminent, which opens up opportunities for tech startups to disrupt it and collaborate with it. According to consulting firm KPMG’s Global Manufacturing Outlook report from 2018, executives from industrial manufacturing companies across the globe said there was a lot of expectation on them to lead the digital transformation of their organisations. However, they expressed worries that lead times may often appear overwhelming. From the standpoint of corporate venturing units and departments from the industrial sector, this implies they still have a lot of work to do in terms of scouting for innovation.
Additive manufacturing (AM), more commonly known as 3D printing, is among the most promising disruptive technologies for industrials. While not every home has been turned into a factory – as people said when the technology emerged – 3D printing is an indelible part of industry 4.0, blending digital technology and manufacturing. The most widely used process for production at higher volumes is the powder bed fusion, which creates a part one layer at a time, using fine powder as the medium. Another process is material extrusion, which uses continuous filament of thermoplastic or composite material to build 3D parts. The plastic filament is fed through an extruding nozzle, where it is heated and then deposited on to a platform layer by layer. This process is used mostly for basic concept modelling and design validation, particularly in small organisations and educational institutions.
Most 3D printers work primarily with polymers but there is a clear drive to use metals, alloys and other materials. The most popular process for 3D printing of metals is binder jetting, which uses a liquid binding agent on to a platform to stick together layers of powder material. Desktop Metal, a 3D company that has received a lot of corporate backing and attention, has already installed its first binder jetting system at a customer site.
Consulting firm Wohlers Associates issues a report on 3D manufacturing every year and, according to the latest, in 2019 there were “177 producers of industrial AM systems, which are those priced at $5,000 or more. This is nearly one-third more than the 135 system manufacturers reported [in 2018]. While industrial system manufacturers grew notably, desktop 3D printing systems (those that sell for under $5,000) saw significant decline in annual growth. The overall AM market continues to trend upward, with many new players, hundreds of millions of dollars invested, and innovative new products designed for AM that few envisioned years ago.”
What are the challenges for additive manufacturing? Terry Wohlers, head of the firm, said: “Among the biggest challenges are the costs associated with AM machines and materials. Both are still expensive. Another is the design for AM, which can be quite different than design for conventional manufacturing, both in methods and tools. Post-processing time and expense, coupled with the current lack of automation, are obstacles to growth. Supply chains and the AM ecosystem are underdeveloped, which is slowing the adoption of the technology.” He also said that was where opportunities lie ahead for some time to come: “Many companies, both large and small, are dedicating resources to solving these problems. It is not something that will happen soon.” This suggests there are many opportunities for synergies of innovative small companies with corporations in this space.
Another growing sub-sector of the new industrial economy is unmanned aerial vehicles (UAV) or drones. According to MarketWatch, the global market for civilian drones is estimated at $6.8bn and is expected to reach $36.9bn by 2022. According to Drones: Reporting for work, a 2018 report by financial services firm Goldman Sachs, commercial drones are expected to grow due to demands from two major industries– the construction industry, accounting for $11bn, and agriculture ($6bn). Drone applications in construction cover a wide range of activities including inspection, maintenance, surveying and mapping. In agriculture, drones are used mostly for mapping, data gathering and in conjunction with precision farming sensor technologies. According to Forbes, drone adoption is set to increase “in select industries like agriculture, construction, insurance, mining and aggregates, public safety and first responders, oil & gas, survey engineering, telecommunications and utilities”.
Robots
Robotics is another equally disruptive technology for the industrial sector. According to the Global Robotics Market report by consultancy Allied Market Research, the market was estimated at about $34bn in 2019 and is forecast to register a double-digit compound annual growth rate by 2025. According to the report, the expected growth is “driven by advantages such as cost reduction, improved quality, increased production, and improved workplace health and safety”. The report also points out that: “The adoption of robots across a wide range of industries including manufacturing, healthcare, defence and security, logistics, inspection and maintenance, automotive, electronics, and food and beverage has accelerated the growth of the market. Robots deliver better quality products and services more efficiently, with less wastage and without causing physical damage to humans due to their autonomous nature.” The report, however, identified “high initial investment and concern for human safety” as potential stumbling blocks for this growth.
Robots are ever more commonly found in the industrial sector. According to data from the International Federation of Robotics (IFR), the global stock of operational industrial robots is expected to increase from about 1,828,000 units at the end of 2016 to 3,053,000 units by the end of 2020, an average annual growth rate of 14%. The report also points out that the industrial robotics growth varies across regions: “In Australasia, the operational stock of robots is estimated to increase by 16% in 2017, by 9% in the Americas and by 7% in Europe. Since 2016, the largest number of industrial robots in operation has been in China.”
According to an IFR earlier report, the biggest increases are expected in car manufacturing. Demand for robots in the automotive industry rose by 6% to 103,300 units in 2016, accounting for 35% share of the total supply. The major drivers for growth were investments in new production facilities in emerging economies as well as investments in major car producing countries in North America, Western Europe and East Asia.
Agriculture
Agriculture (see p. 81 and supplement) is, undoubtedly, the most fundamental economic activity for human existence. According to the Agriculture Global Market Report 2020, the market is forecast to reach $12.197 trillion in size by year 2022 at a CAGR of approximately 5.9%. This has been created by macroeconomic factors like the growth of emerging markets and low interest rates in developed markets after the recession, as the report explains.
The report notes robotisation as a significant trend: “Shortage of labour and increasing demand for advanced agriculture tools in many countries is driving the demand for agriculture robots or agribots. Agribots are used in farmlands for pruning, weeding and spraying pesticides and herbicides. They are connected to tractors for spraying water, seeds, pesticides, nutrients and harvesting.”
Precision farming (PF) has emerged as a form of technology applied to agriculture, referring to the use of IT to improve production, whether through monitoring and data gathering or automation in machinery. According to a report by market research firm Mordor Intelligence, the PF market was sized at $4.51bn in 2019. This is forecast to reach $9.15bn by 2025 at a CAGR of 12.5% .
The Mordor report notes: “Over the last two decades, precision farming has successfully made the transition from being an academic research topic to a highly beneficial practice in the field of agriculture. Around 70%-80% of the new equipment purchases have been deemed to contain some form of PF tools. PF practices can be better analysed as a cyclical approach rather than a sequential one. By the end of 2030, PF is touted to become the most influential trend in agriculture, eclipsing other advancements.”
Technology is disrupting not only the cultivation of land on Earth but also how we use outer space. The cost of satellites, some of which are no bigger than a shoebox, has made them commercially available to many private entities and universities. According to the 2019 State of the Satellite Industry report, the number of operational satellites in orbit increased by more than 20% a year during the 2010s, with over 300 satellites being launched in 2018 alone. The report notes that remote sensing satellites made up 39% of the total, while commercial communications satellites are 22%.
Global satellite revenue grew by 3% in 2018 compared with the previous year, led by manufacturing revenues which increased by 26% over 2017 and launch services revenues, which increased by 34% over the previous year, according to the report. Growth was registered in value-added markets such as broadband (12%), radio (7%), managed networks (7%) and mobile (3%), while there was 1.7% overall decrease, reflecting satellite TV and transponder leasing markets. The space is likely to continue to welcome innovations by startups, as telecoms roll out their 5G networks and nearly all industrial activity is digitised via the IoT.
Chemicals
Not all sub-sectors of industrial have been growing. The 2020 Chemical Industry Outlook by consulting firm Deloitte describes the global chemical industry as one facing headwinds, including weakening economic growth – not only in the US but also in Europe and China as well as ongoing trade tensions that can dampen growth and other political risks. The report also notes demand in the chemical industry is directly linked to demand and growth of related industries like construction and the automotive sector, while inputs originate from the oil and gas sector and other commodities.
As these sectors are not booming, chemicals are suffering as well. According to Deloitte: “Given these impending headwinds faced by the chemical industry going forward, it only makes sense for chemical companies to find new growth opportunities and extract more out of their existing assets and resources. They can do so by investing more in innovation – not only in new product or technology development but also in new business models. In addition, niche markets within key end-use industries might provide newer growth avenues for chemicals and plastics. For instance, the average plastics content in an automobile still stands below 10 percent, providing an opportunity to incorporate more high-performance plastics and other chemicals into newer vehicle models.” This is beneficial for innovative startups looking collaborate with this sector. It is reasonable to expect to see more corporate venturing bets in this space.
A closely-related field is advanced materials, which, unlike chemicals, has experienced growth. According to the Global Advanced Materials Market Outlook 2024 report, the market was estimated at $1.37 trillion in 2016 (including traditional materials like steel and other alloys) at a CAGR of 5.1%. The report forecasts it to reach $1.98 trillion by the end of 2024 due to increasing demand for advanced materials, driven by industrialisation of emerging economies plus more consumption of consumer goods and more applications of advanced materials in healthcare, aerospace, the automotive industry and electronics.
Year in review
For the period between February 2019 and January 2020, we reported 332 venturing rounds involving corporate investors from the industrial sector. A considerable number of them (140) took place in the US, while 43 were hosted in Japan, 27 in China and 18 in the UK.
Many of those commitments (74) went to emerging enterprises from the same sector (mostly agriculture and agtech, as well as robotics and unmanned aerial vehicles) but with the remainder going into companies developing other technologies in synergies with industrials or of interest to large diversified conglomerates: 58 deals in the IT sector (AI, big data and analytics and enterprise software), 40 in life sciences (primarily medical devices, pharmaceuticals and healthcare IT) and 39 in services (mostly logistics, travel and accommodation tech, and real estate tech).
Industrial corporates’ co-investments show a range of interests, but they match the specific technological needs and interests of incumbents. The commitments range from mobility and parking (Go-Jek, ApplyParking) through energy storage technologies (ESS, Hydrogenious) to AI for the industrial workplace (SkyDisc) and electric circuit tech (CellLink).
On a calendar year-on-year basis, total capital raised in corporate-backed rounds stayed almost flat with $10.4bn in 2018 versus the $10.77bn in 2019. The deal count, however, grew significantly by 22% from 272 deals in 2018 up to 333 tracked by the end of 2019.
Industrial conglomerates Fosun and Mitsubishi, industrial technology and appliance manufacturer Robert Bosch and conglomerate Siemens registered the most deals. The list of industrial corporates committing capital in the largest rounds was topped by Mitsubishi, conglomerates Access Industries and SK Group.
The most active corporate venture investors in the emerging industrial companies were financial services company Sumitomo Mitsui, telecoms and internet conglomerate SoftBank and electronics producer Samsung.
The emerging industrial businesses in the portfolios of corporate venturers came from a range of innovation applications including the agtech space (AgroSavfe, Farmnote, Ynsect) and dronetech space (Kespry) through 3D printing (Carbon) to advanced materials (DigiLens) and manufacturing equipment diagnostics (Augury).
Overall, corporate investments in emerging industrial-focused enterprises went up from 186 rounds in 2018 to 206 by the end of 2019, suggesting an 11% increase. Estimated total dollars in those rounds, however, dropped by more than half from $7.41bn in 2018 down to $3.65bn.
Deals
Corporates from the industrial sector invested in large multimillion-dollar rounds, raised mostly by enterprises in the same sector, transport and energy.
Indonesia-based on-demand ride provider Go-Jek secured about $1bn from investors including corporate backers at a $10bn post-money valuation. Mitsubishi, internet group Tencent, e-commerce firm JD.com and internet technology provider Google supplied funding, which represented the first close of Go-Jek’s series F round. They were joined by investment manager Provident Capital. Founded in 2010, Go-Jek’s core offering is a ride hailing service that is available in more than 50 cities across southeast Asia. It has also launched a wide range of services, such as a digital wallet, prescription medicines delivery and on-demand massages.
China-based AI chip developer Horizon Robotics raised $600m in a series B round backed by the Chinese and semiconductor subsidiaries of conglomerate SK Group. SK China and SK Hynix backed the round with a number of corporate venture capital funds from unnamed, China-based car manufacturers. The round also featured Hillhouse Capital, Morningside Venture Capital, an unnamed fund managed by China Oceanwide Holdings and CSobor Fund, a private equity vehicle formed by investment company Citic. Horizon Robotics’ valuation was reportedly “at least” $3bn. Founded in 2015, Horizon Robotics is developing embedded AI chips for applications such as autonomous vehicles, surveillance equipment and other smart devices. The company’s clients include SK Telecom, the telecoms subsidiary of SK Group, which entered into a cooperation agreement in November 2018 to use Horizon’s algorithms to develop smart retail stores.
Chime, a US-based digital bank operator backed by financial services firm Northwestern Mutual, completed a $500m series E round led by investment firm DST Global and featured Access Technology Ventures, an investment vehicle for Access Industries. Other investors were General Atlantic, Iconiq Capital, Coatue Management, Menlo Ventures and Dragoneer Investment Group. Founded in 2013, Chime provides financial services through a mobile app rather than physical branches, offering a current account, debit card and overdraft that are fee-free. The platform also enables users to receive their salary up to two days early. The company’s user base has grown to approximately 6.5 million customers, and it will use the series E proceeds to develop additional products, double its headcount and open an office in Chicago.
India-based e-commerce logistics provider Delhivery closed a $413m series F round led by the SoftBank Vision Fund, the $98.6bn investment vehicle managed by SoftBank. The round also included Fosun International and CA Swift Investments, a subsidiary of private equity firm Carlyle Group. Vision Fund invested $350m and now owns a 23.4% stake in the company. Founded in 2011, Delhivery operates an end-to-end supply chain service for India’s e-commerce sector. Its network consists of 19 automated sorted centres, 30 fulfilment facilities, more than 2,500 direct delivery centres and more than 5,000 partner centres. The company has a roster of more than 21,000 drivers, who deliver packages 24 hours a day.
China-based electric car developer Bordrin Motor collected RMB2.5bn ($362m) in funding from a consortium led by Silver Saddle Equity Investment Management, an investment arm of chemicals, oil and fertiliser conglomerate Sinochem International. The round included power tools manufacturer Positec and Sumitomo Corporation Equity Asia, a corporate venturing division of conglomerate Sumitomo. Founded in 2016, Bordrin Motor is developing smart electric vehicles and has unveiled two models to date: a five-seat sports utility vehicle called iV6 and a larger SUV model dubbed iV7. The funding went to product development and marketing activities.
Digital manufacturing technology provider Carbon, which is based in the US, secured more than $260m in funding from investors including chemicals provider Arkema, advanced materials manufacturer JSR. Sporting apparel producer Adidas and pharmaceutical group Johnson & Johnson participated in the round through corporate venturing vehicles Johnson & Johnson Innovation – JJDC and Adidas Ventures. Carbon has created a method of additive manufacturing it calls Digital Light Synthesis, combining digital light projection, programmable liquid resins and oxygen permeable optics to produce 3D printed components it claims have the consistency of injection-moulded parts. The cash was used to fund the completion of a facility that will fuel research and development by enabling Carbon’s engineers to enhance the technology. It was also meant to support European and Asian growth along with the enhancement of its software and base materials.
SK Group closed a $250m investment in Shenzhen Londian Electrics, a China-based developer of electric equipment such as energy meters. The investment formed the basis of a joint venture between the two companies, as Londian looks to become the top international producer of copper foil and enhance its presence in advanced batteries and communications technology materials. Founded in 1996, Londian produces a wide range of power equipment products, from smart meters and distribution network automation technology to 5G communications power supply and solar photovoltaic equipment to lithium battery components and energy storage technology. Electrolytic copper foil is a key material for lithium-ion batteries, and Londian, which oversees a business known as Lingbao Wason Copper Foil, already serves clients such as electronics provider Panasonic Electric Works, chemicals producer LG Chem and battery manufacturer Samsung SDI.
China-based retail and logistics services provider Huimin attracted RMB1.6bn ($225m) in funding from investors including Fosun Capital, an investment arm of Fosun International. State-owned private equity firm Jinan Industry Development Fund led the round, which included Fortune Capital, GP Capital and China Renaissance. Founded in 2013, Huimin has built a digital platform consisting of four businesses that tailor to community-sized retail outlets, their suppliers and local residents. The company’s products include an intelligent business management system and a business-to-business marketplace for shop managers to order stock. Huimin also operates group-buying syndicates where retailers club together to purchase products with frequent turnover in their stores, as well as a chain of convenience stores under the brand name Haijia Bianli.
Robert Bosch co-led a $173m series C round for China-based light detection and radar (lidar) technology developer Hesai with venture capital firm Lightspeed China Partners. Semiconductor and sensor manufacturer ON Semiconductor also took part in the round, as did VC firm Qiming Venture Partners, private equity firm Detong Capital and fund manager Axiom Asia Private Capital. Hesai provides lidar equipment that will map the surroundings of a vehicle operating with an autonomous driving system. It was founded in the US in 2013 before relocating to China the following year and oversees two manufacturing facilities in addition to research hubs in both countries.
There were other interesting deals in emerging industrial-focused businesses that received financial backing from corporate investors from the same and other sectors.
US-based robotic fulfilment systems developer Berkshire Grey secured $263m in a series B round led by SoftBank. Khosla Ventures, New Enterprise Associates and Canaan also contributed to the round. Berkshire Grey has developed technology that combines robotics and AI to automate retail, e-commerce and logistics fulfilment. Applications include sorting small packages for online businesses and just-in-time stock replenishment for stores. The money from the round was to support global expansion efforts and drive recruitment. The company will also look to make acquisitions.
Crop enhancement technology developer Indigo Agriculture, which is used based, received $175m of convertible equity financing from investors that included courier services provider FedEx. The round was also backed by unnamed existing shareholders and was raised alongside $25m in debt financing from financial services firms including Pacific Western Bank. Indigo markets a range of products to help farmers grow food sustainably while increasing profitability, including microbial crop treatments, an agricultural data platform and a produce shipping service. The company has also launched the Terraton Initiative, a global program through which it hopes to remove a trillion tons of carbon dioxide from the atmosphere by absorbing it in soil. The funding will go towards continued international expansion of the company’s Grain Marketplace, an e-commerce platform that connects farmers with buyers of their crops.
France-based agtech developer Ÿnsect secured $125m in a series C round that featured sugar producer Finasucre and was led by impact investment firm Astanor Ventures. The round included state-owned investment bank Bpifrance, through Bpifrance Ecotechnologies and Bpifrance Large Venture, as well as impact investment firm Quadia, private equity firms Demeter and Idinvest Partners and venture fund Vis Vires New Protein Ventures. Investment company Compagnie du Bois Sauvage and an unnamed Singaporean family office also backed the round. Founded in 2011, Ÿnsect breeds insects to use them as fish feed, pet food and organic plant fertilisers. The company produces two products – ŸnMeal, extracted from mealworms for fish feed, and ŸnFrass, made from mealworm castings for fertiliser. The series C money was destined to scaling up production at Ÿnsect’s insect farm in northern France and driving international expansion efforts, with a key focus on opening an additional factory in North America.
China-based digital imaging technology developer Black Sesame Intelligent Technology raised approximately $100m in a series B round led by Legend Capital, the venture capital firm formed by conglomerate Legend Holdings. Legend Capital invested through its semiconductor-focused fund, Junhai Chuangxin, and the round included car manufacturer SAIC Motor and SK China. China Merchants Capital, Delta Capital, FengHu Fund Management and Northern Light Venture Capital filled out the participants.
Founded in 2016, Black Sesame is developing AI algorithms used at chip level to facilitate computer vision, image processing and embedded sensing. The company is focusing its efforts on creating an autonomous driving platform that will be able to detect and pinpoint the position of pedestrians, traffic lights, lanes, cars and other objects. Black Sesame claims its approach is better than that of competitors that rely solely on graphics processing units. The series B funding will support the design and development of the controller and software required for self-driving cars.
Seed technology developer Inari completed its $89m series C round, pulling in capital from investors including packaged food producer Campbell Soup’s corporate venturing vehicle, Acre Venture Partners. The round also featured Flagship Pioneering, the life sciences company builder that founded Inari, as well as state-owned holding company Investment Corporation of Dubai, the Singaporean government-owned EDBI and unnamed additional participants. The US-based company has created a system that combines genetic and computational technology to help seed producers devise new varieties. It will spend the series C cash on enhancing its tools and bringing its soybean and corn seeds to the US commercial market.
US-based developer of non-toxic pesticides Provivi received $85m in a series C round, which was co-led by venture capital fund Pontifax Global Food and Agriculture Technology Fund as well as the Singaporean state-owned investment firm Temasek. The round also included BASF Venture Capital, the corporate venturing unit of chemical producer BASF, among other investors. This latest and fresh funding is meant to enable the company to start commercialising a direct-to-farmer product for fall armyworm – a moth whose larvae can damage different types of crops, including peanuts, oranges, apples rice and tobacco. Launched in 2012, Provivi develops alternatives to traditional pesticides, which rely on insect pheromones to confuse pests, preventing their finding and mating with each other and, ultimately, this way protecting the crops from destruction. The pheromones are adapted to specific species, avoiding the unnecessary death of organisms that pose no threat.
Industrial 3D printer manufacturer Markforged, which is based in the US, completed an $82m series D funding that included Siemens, software provider Microsoft and carmaker Porsche. Growth capital firm Summit Partners led the round, which included private equity firm Matrix Partners, while Siemens and Microsoft participated through subsidiaries Next47 and M12. Founded in 2013, Markforged has developed metal and composite printers that allow engineers, designers and manufacturing professionals to produce fixtures or prototypes more quickly and affordably than with established methods. The series D capital will fund the development of mass production printers and the addition of new materials to Markforged’s printing processes, as well as the company’s international growth plans. The round increased its overall funding to $139m.
Exits
Corporate venturers from the industrial sector completed 18 exits between February 2019 and January 2020 – 14 acquisitions and four initial public offerings (IPOs). Most of these came from companies not developing strictly industrial economic activities. This is unsurprising, as emerging industrial businesses are capital intensive and take longer to mature sufficiently for an acquisition or public markets. As for year-on-year, both the deal volume and the estimated dollar value remained somewhat flat in 2019 compared to 2018.
Virtual care provider Teladoc Health agreed to acquire US-based telehealth services provider InTouch Health for $600m in a deal that will allow domestic robotics technology producer iRobot to exit. The transaction will involve Teladoc paying $150m in cash for the company and $450m in shares. InTouch had raised about $93m in funding pre-acquisition, according to press releases and securities filings. Founded in 2002, InTouch combines a cloud network with dedicated telehealth technology that allows healthcare systems to diversify their care. It has partnerships in place with about 450 care providers worldwide and expects to increase full-year revenue about 35% to $80m for 2019.
E-commerce software producer Shopify agreed to acquire US-based warehousing and fulfilment technology provider 6 River Systems in a $450m deal that will allow iRobot to exit. The transaction will be made up of approximately $270m in cash, with the rest to consist of shares in publicly-traded Shopify. Founded in 2015, 6 River has created a fulfilment system that combines robotics technology and cloud software to help warehouse workers fulfil orders and replenish warehouse stock levels more quickly and efficiently. Although the company’s technology will support a fulfilment network launched by Shopify in June this year, 6 River will also continue to sell its systems to warehouses post-acquisition.
Consumer tax services provider H&R Block agreed to purchase Wave Financial, a Canada-based accounting software provider backed by financial services firms National Australia Bank and Royal Bank of Canada for $405m. The all-cash transaction is expected to conclude within the next few months. Wave’s leadership team, including co-founder and chief executive Kirk Simpson, will continue to operate independently from its headquarters in Toronto. Founded in 2009, Wave has developed a cloud-based platform that enables entrepreneurs and small businesses to manage all aspects of accounting, including invoicing and receipt-tracking, as well as payment processing, payroll and bookkeeping services. It serves more than 400,000 clients across the world. HRB expects the acquisition to strengthen its position in the small business market.
OneConnect Financial Technology, a Singapore-based financial services platform developer formed by insurance group Ping An, raised $312m in an IPO on the New York Stock Exchange. The company issued 31.2 million American Depositary Shares (ADSs), each representing three ordinary shares, priced at $10, giving it a market capitalisation of $3.61bn. However, a month later, the underwriters partially exercised their over-allotment option to buy 3.52 million more shares, bringing the total proceeds of the IPO to $347m. OneConnect was created as the financial technology arm of China-headquartered Ping An and spun off in 2017 to commercialise an AI-based cloud software platform that helps financial services providers, insurance companies and asset management firms with digital transformation. Customers can use the platform to support the move to digital technologies in areas such as risk and operations management, sales and marketing, and product development, improving service quality, reducing costs and boosting sales productivity.
US-based cancer therapy developer IGM Biosciences went public in a $175m IPO that scored an exit for catalyst producer Haldor Topsøe. The company priced more than 10.9 million shares on the Nasdaq Global Select Market at $16 each, in the middle of the $15 to $17 range, giving it a market capitalisation of approximately $463m. IGM was known as Palingen before rebranding in 2010 to focus on a platform that produces engineered immunoglobulin M antibodies to treat cancer. The company will put $45m of the proceeds into clinical development and the expansion of a phase 1 clinical trial of its lead candidate, IGM-2323, which is being developed to treat non-Hodgkin’s lymphoma. Another $25m will go to clinical development and investigational new drug-enabling studies for an antibody that will move into the dose escalation part of a phase 1 trial. IGM will use $40m to develop new clinical drug candidates and $25m to expand its manufacturing capabilities.
Life360, the US-based family-tracking technology provider backed by corporates home security product maker ADT, automotive manufacturer BMW and Duchossois Group, raised more than A$145m ($96m) in its IPO. Life360 issued 23.5 million chess depositary interests (CDIs) – with three CDIs representing one share – on the Australian Securities Exchange, priced at A$3.46 each to raise A$81.5m. Some existing shareholders sold another 6.8 million CDIs to bring the total proceeds from the offering to A$105m. Founded in 2008, Life360 has developed web and mobile apps that enable family members to locate each other on a map and be notified when others arrive at a predefined locationThe company also offers a feature that detects when a user is involved in a car crash and automatically alerts emergency services. The IPO proceeds will drive international expansion efforts and support its plans to develop home and car insurance products as well as home security devices.
TransMedics, a US-based medical device producer backed by pharmaceutical firm Pharmstandard International and steel conglomerate Posco, went public in a $91m IPO. The company issued 5.69 million shares priced at $16.00 each on the Nasdaq Global Market, achieving a market cap of $430m. Its shares rose $22.49 on their first day of trading. Founded in 1998, TransMedics has developed a device called the Organ Care System, which uses warm blood perfusion to preserve hearts, lungs and livers while they are being transported for use in transplants. The technology also allows physicians to assess to viability of an organ prior to transplant. The company will use $25m of the IPO proceeds to support commercialisation of its lung-focused device, OCS Lung, and, if it is approved, the heart-focused OCS Heart system.
Game engine maker Unity Technologies has purchased corporate-backed US-based gaming communications technology developer Vivox for an undisclosed amount. Founded in 2005, Vivox has created a platform that enables users to communicate through voice or text tools while playing mobile, PC and console games. The company’s platform has been integrated into more than 125 games through partnerships with gaming studios such as Ubisoft, Bluehole, Wargaming.net and Epic Games, and has more than 100 million monthly users. Following the deal, Vivox’s team will join Unity where it will operate independently as a wholly owned subsidiary. Unity said the technology will be added to its own platform to help game developers.
Petroleum supplier Shell agreed to acquire one of its portfolio companies, Germany-based energy storage technology provider Sonnen, for an undisclosed amount. Founded in 2010 as Sonnenbatterie, Sonnen produces smart energy storage systems for customers in Europe, the US and Australia, allowing them to store surplus energy from home solar systems to be used at times when the sun is not out. Users in some European markets can also band together into a local community to pool their energy through what the company refers to as a virtual battery. Sonnen will operate as a subsidiary of Shell, working with its New Energies division, and expand its virtual battery system into grid services.
Zinc, the US-based occupational communication platform backed by industrial conglomerate General Electric and media group Hearst, was acquired by service sector software publisher ServiceMax for an undisclosed sum. Zinc runs an occupational communication platform that helps distribute information across enterprises that use deskless workers for purposes such as field services, construction, hospitality and healthcare. The software exploits technologies including secure broadcasting, video messaging, push-to-talk functionality, analytics and location sharing to facilitate communication across multiple modes within the client’s organisation. ServiceMax believes the acquisition will augment its own services execution management products having already started integration with Zinc in April 2018.
EHang Holdings, a China-based drone technology developer that counts corporates Lung Biotechnology and United Therapeutics Corporation as investors, went public in a $40m IPO in the US. The company priced 3.2 million ADSs, each representing two ordinary shares, at $12.50 each, at the foot of the $12.50-$14.50 range it had set. It floated on the Nasdaq Global Market. EHang is developing autonomous drone technology for use in passenger transport, logistics and airborne media. It made a $6.7m net loss in the first nine months of this year from $9.4m in revenue. About 50% of the IPO proceeds were earmarked for the expansion of EHang’s manufacturing capacity. It intends to divide the rest between research and development and general corporate purposes.
Software automation technology provider CloudBees agreed to acquire Electric Cloud, a US-based production management software producer backed by Siemens, for an undisclosed amount. Founded in 2002, Electric Cloud has developed a software platform called ElectricFlow that helps developers automate the process of building, deploying and releasing enterprise applications. The company has also created a platform dubbed Electric Accelerator, which is designed to speed up the process of creating and testing applications by running programs across multiple processors, including on-premise and in the cloud.
Drone intelligence platform developer AirMap paid an undisclosed amount to acquire Hangar Technology, a US-based developer of enterprise workflow automation software, allowing consulting firm R/GA to exit. Hangar provides software that automates workflow for unmanned aerial vehicles on behalf of businesses. The product will be added to AirMap’s enterprise offering together with Hangar’s flight planning and image processing technology.
Funds
For the period between February 2019 and January 2020, corporate venturers and corporate-backed VC firms investing in the industrial sector secured more than $3.56bn in capital via 45 funding initiatives, which included 28 VC funds, nine newly-launched or re-funded venturing units, five accelerators, one incubator and two other initiatives.
On a calendar year-to-year basis, the number of funding initiatives in the industrial sector went slightly up from 39 in 2018 and 36 in 2017. Total estimated capital, however, followed a different path: it stood at $3.56bn by the end of last year, down 14% from the $4.12bn in 2018.
Rabo Frontier Ventures, the corporate venture capital arm of financial services firm Rabobank, invested in the $500m Fund IX closed by UK-based VC firm Northzone. The vehicle’s other limited partners include unnamed contributors to the firm’s earlier funds as well as undisclosed new investors. The firm has now raised €1.5bn ($1.7bn) across nine funds since it was founded in 1996. Northzone IX is primarily concentrating on series A and B rounds but will also take part in a limited number of seed deals, targeting consumer and business-facing startups in areas like mobility and construction as well as financial services, healthcare and education.
Malaysia-based oil supplier Petroliam Nasional (Petronas) set up another corporate venture capital unit with $350m, having created a Europe and US-based corporate venture capital subsidiary. State-owned Petronas announced that Petronas Corporate Venture Capital (Petronas CVC) will make direct investments in technology startups developing industry 4.0, advanced materials, specialty chemicals and futuristic energy technology as well as access into new markets. The company said in a statement: “Petronas CVC’s global coverage will focus not only in North America and Europe, managed by its recently launched VC arm PTV International Ventures America (Piva), but also in the Asia-Pacific and Malaysian startups, to spur local entrepreneurship and the venture capital ecosystem.”
UK-based investment firm Ahren Innovation Capital closed its inaugural vehicle at more than £200m ($253m) from LPs including consumer goods conglomerate Unilever, insurance firm Aviva and broadcaster Sky. The LP list also featured diversified holding group Wittington Investments, undisclosed US families, and individual investors including André Desmarais, Carlos Rodriguez-Pastor and the eight scientists who co-founded the vehicle. The fund had reached a $129m first close in September 2018. Founded in 2017, Ahren Innovation Capital focuses on technologies covering space and robotics, and energy and environmental technologies, the human brain and AI as well as genetics and biotechnology. The firm both invests in and helps build companies, offering access to the expertise of its founding science partners. It is in particular seeking out opportunities that take a multidisciplinary approach to tackle challenges.
Investment manager Reliance Nippon Life Asset Management (RNAM) is set to manage a $187m fund of funds that will be backed by several Japan and India-based corporates. The limited partners for the vehicle, dubbed Indo-Japan Emerging Technology & Innovation, include insurance firm Nippon Life, automotive manufacturer Suzuki, financial services firm Mizuho Bank and state-owned financial institution Development Bank of Japan. RNAM is promoted by Japan-based Nippon Life and Reliance Capital, the financial services arm of India-headquartered conglomerate Reliance Group. It holds 85.8% of the fund’s share capital. Approximately $150m, or 80% of the capital, is expected to come from Japanese LPs and the rest from India. The Indo-Japan Emerging Technology & Innovation, as the vehicle was dubbed, is intended to invest in 15 to 25 India-focused venture capital funds, with the resulting capital eventually boosting sectors such as the internet-of-things, robotics, AI and business-to-business software.
NewMargin Ventures, a China-based investment firm backed by food producer Kerry Group and telecoms equipment provider Motorola Solutions, reached the first close of a RMB10bn ($1.48bn) fund. The fund has so far raised approximately $187m from LPs including state-owned conglomerate China Everbright and two government-backed funds, NewMargin. Founded in 1999, NewMargin Ventures focuses on high-margin manufacturing and state-owned enterprises, as well as civil-military integration, a national strategy to transfer technologies from military and defence research to civilian-focused industries. The fund will target IT and new materials, investing in companies producing high-end chips, industrial robotics and automation technology. NewMargin identified Kerry Group, Motorola Solutions, hotel manager K Wah Group, mobile device producer Alcatel and Sunevision, the technology arm of property developer Sun Hung Kai Properties, as investors, though it is unclear whether they backed the latest fund.
Germany-based chemicals producer Evonik launched its second corporate venture capital fund with a €150m ($170m) commitment, increasing its funds under management to €250m. Evonik formed its VC unit in 2012, providing an initial €100m, and the corporate has since built up a 25-strong portfolio of direct and fund-of-fund investments. Those portfolio companies include flame-retardant plastic developer FRX Polymers, decorative printing technology provider Velox and Structured Polymers, the 3D printing technology provider acquired by the parent company. The vehicle’s overall strategy is to connect Evonik to new technologies while scouting out potential acquisition targets in Europe, North America, Asia and Israel, from offices in Germany, the US and China. Bernhard Mohr, head of Evonik Venture Capital, said: “The extension of the fund volume to €250m manifests our ambition to establish Evonik Venture Capital as one of the global leading investors in the specialty chemicals space.”
Philippines-based diversified industrial conglomerate Ayala unveiled plans to launch a $150m corporate venture capital fund. Ayala intends to raise the capital from its subsidiaries, which cover sectors such as retail, education, financial services, telecommunications, water utilities and renewable energy, IT, public transport, car manufacturing, healthcare, logistics and business process outsourcing. Kickstart Ventures, the investment arm of telecoms firm Globe Telecom, manages the fund. Globe Telecom is a joint venture between Ayala and telecoms provider Singapore Telecommunications, with more than 20 companies in its portfolio. The fund will be the largest in the country if it reaches its targeted close. It will seek out opportunities in areas such as fintech, automation, AI and battery technologies, as well as other areas relevant to Ayala’s subsidiaries.
China-based security camera supplier Hangzhou Hikvision Digital Technology announced its intention to launch a RMB1bn ($141m) investment vehicle in partnership with multiple other investors. CETC Fund Management, an affiliate of state-owned telecoms equipment producer China Electronic Technology Group Corporation (CETC), is the general partner for the fund, which has tentatively been named Hikvision Smart Industry Investment Fund. The vehicle will be equipped with RMB600m from Hikvision itself, RMB200m from venture capital firm Hangzhou Gaoxin Venture Capital and RMB100m from CETC’s CetHik subsidiary, which is Hikvision’s controlling shareholder. Founded in 2001, Hikvision provides video surveillance products and services. The Chinese government owns a 42% stake in the company, which has collaborated on state-instituted projects in cities such as Hangzhou, Shanghai and Urumqi. Hikvision Smart Industry Investment Fund will identify developers of technologies relevant to Hikvision’s ecosystem, such as integrated circuits, robotics, automation and internet-of-things (IoT) products.
Nabventures, the investment arm of the National Bank for Agriculture and Rural Development (Nabard), is aiming to raise up to Rs 7bn ($99.4m) for a venture capital fund. Indian government-owned development bank Nabard will anchor the fund, which has reached its first close. It is focusing on startups developing technologies focusing on agriculture, food and rural development. The vehicle has a proposed target of Rs 5bn but has a greenshoe option in place meaning up to Rs 2bn of additional capital can be added. The firm has not disclosed details of the fund’s backers. Plans for the vehicle originally emerged in December 2018 when Nabventures was launched. Its targeted investment areas are at the heart of Nabard’s strategy, and its funding is intended to help improve local ecosystems and rural livelihoods. Nabventures intends to facilitate support for rural entrepreneurs from impact investors and public sector bodies, with a focus on early to mid-stage rounds.
US-based venture capital firm Brick and Mortar Ventures closed its first dedicated fund at $97.2m. LPs include special materials producer Ardex, design software vendor Autodesk, building materials supplier Cemex, engineering consultancy FMI, construction data modelling software producer Glodon and Ferguson Ventures, the investment arm of plumbing supplies distributor Ferguson. Construction equipment manufacturer Hilti, construction firm Obayashi and equipment rental services provider United Rentals also provided backing, along with Dysruptek, the corporate VC arm of architecture firm Haskell, and Sidewalk Labs, a subsidiary of internet and technology conglomerate Alphabet. Founded in 2015, Brick and Mortar Ventures makes investments of $1m to $4m in seed and series A-stage software and hardware developers in the architecture, engineering, construction and facilities management sectors, and is open to providing follow-on funding. The firm invests in North America, Europe and Australia, and is led by founder and managing director Darren Bechtel, whose family owns engineering group Bechtel.
University and government backing
By the end of 2019, there were 112 rounds raised by university spinouts, down from 122 registered the previous year. The level of estimated total capital deployed in 2019 stood at $628m, lower than the estimated $786m in 2017.
Synspective, a Japan-based synthetic aperture radar (SAR) satellite spinout of University of Tokyo, raised ¥8.67bn ($79.7m) in a series A round featuring UTokyo Innovation Platform (IPC) and Keio Innovation Initiative (KII), the venture funds of University of Tokyo and Keio University. Innovations and Future Creation, a VC fund affiliated with Tokyo Institute of Technology, also participated in the round. General contractor Shimizu and property developer Mori Trust, IT equipment and real estate leasing firm Fuyo General Lease also took part, as did financial services firms Mizuho Financial Group, SBI and Mitsubishi UFJ Trust and Banking Corporation. Mizuho and SBI took part through their Mizuho Capital and SBI Investment subsidiaries. Founded in 2018, Synspective develops SAR technology-powered small observation satellites that provide accurate Earth observation data even in conditions such as bad weather or darkness. The company intends to use the series A funding to strengthen its SAR-powered satellite development and manufacturing structure, aiming to carry out daily observation of the world’s major cities with a constellation of 25 satellites.
LandSpace, a China-based space rocket manufacturer spun out of Tsinghua University, obtained RMB500m ($71m) in a series C round led by venture firm Country Garden Venture Capital. Founded in 2015, LandSpace develops and operates space rockets on behalf of commercial clients, primarily targeting small and medium-sized enterprises in the space sector. The series C funding will fund the development of a liquid-propelled rocket and reusable spacecraft technology. LandSpace has now secured approximately $200m in funding altogether.
HawkEye 360, a US-based data gathering satellite operator using Virginia Tech research, added $15m from family investment office Advance to bring its series B round to $85m. The commitment followed the first $70m series B tranche in August 2019, which featured commercialisation firm Allied Minds, aerospace manufacturer Airbus, mapping software developer Esri, Razor’s Edge Ventures, Shield Capital Partners and unnamed additional investors. However, Advance is now the spinout’s biggest shareholder after paying $65.6m for Allied Minds’ 58% stake, in a secondary deal announced in September 2019. Founded in 2015 by Allied Minds, HawkEye 360 is in the midst of launching an 18-strong cluster of low-earth orbit satellites that collect and analyse data leveraging radio frequency (RF) signals and geospatial technology. The spinout has also developed an RF signal mapping product, RF Geo, which can track logistics routes and geolocate radio signals and emergency distress beacons.
People
Sue Siegel, chief innovation officer (CIO) of industrial conglomerate General Electric (GE) and chief executive of its corporate venturing unit, GE Ventures, left her positions. Siegel had been CEO of Healthymagination, GE’s healthtech program, since 2012. She became CEO of GE Ventures in 2013 to help distinguish the unit from predecessor GE Capital, before being promoted to CIO at its parent in 2017.Siegel was responsible for backing healthcare, IT, manufacturing and energy-oriented startups and managing portfolio companies on behalf of GE Ventures. She also led the unit’s licensing efforts, generating value for GE’s investments and capitalising returns. The news came at the time when GE was beginning to sell its portfolio, having planned to divest GE Ventures.
Masatoshi Ueno left his senior manager position at AGC Ventures, the US-based corporate venturing unit of Tokyo Stock Exchange-listed glass manufacturer Asahi Glass, a subsidiary of Mitsubishi. Ueno joined AGC Ventures in 2011 and oversaw deals covering the advanced materials manufacturing sphere. He featured in Global Corporate Venturing’s Powerlist in 2017 and confirmed he will join construction, mining and industrial equipment producer Komatsu as a US-based managing director to run corporate venturing and innovation activities on behalf of the chief technology officer.
Piau Voon Wang was appointed managing director and chief operating officer of Legend Capital, the venture capital firm formed by conglomerate Legend Holdings. He was a co-chief investment officer at asset management firm Noah Holdings from 2016 until 2017, and a partner from 1999 to 2016 at private equity firm Adams Street Partners, where he contributed to a new strategy for investments into Asia. Wang previously worked as a manager in the M&A consulting department for now-defunct accounting firm Arthur Andersen, and has also provided his services to the investment teams at Nikko Capital Singapore and Indosuez Asset Management.
Sven Harmsen left his position as investment director at M Ventures, the corporate venturing vehicle for Germany-based pharmaceutical firm Merck Group formerly known as Merck Ventures. Nova, France-based glass maker Saint-Gobain’s strategic investment arm, hired Harmsen as director of external ventures, and the role will entail him partnering and financing emerging companies on behalf of the corporate. He told Global Corporate Venturing: “I am excited to join one of the world’s most innovative companies that is driving cutting-edge solutions to the manufacturing and construction industry.” Harmsen had joined Merck in 2016 to help set up and lead M Ventures. He oversaw the unit’s performance materials portfolio, including metallisation technology provider Aveni, reflective display technology producer Clearink and sensor technology developer Peratech.
Japan-headquartered electronics manufacturer Hitachi launched a $150m corporate venture capital arm called Hitachi Ventures to accelerate startups globally, especially those based in Europe and the US. The unit hired Stefan Gabriel, formerly president of manufactured goods conglomerate 3M’s corporate venturing subsidiary, 3M New Ventures, as chief executive. He featured in Global Corporate Venturing’s Powerlist in 2012, 2013 and 2014. Hitachi Ventures will target startups developing disruptive technologies that can integrate with its parent company’s products. Hitachi itself has been intermittently active in corporate venturing, generally through subsidiaries, backing companies such as C3Nano, Reno Sub Systems and Flutura Decision Sciences and Analytics.
Yasuo Miyazawa, previously a general manager for electronics parts manufacturer Nitto Denko, formed a corporate venturing unit on behalf of Japan-based chemical producer Sekisui Chemical. Miyazawa led Nitto’s US-based corporate venturing vehicle, Nitto Innovations, from 2012 before returning to its headquarters in Osaka, Japan in 2018 to oversee new business development. Sekisui Chemical has already been involved in corporate venture capital, funding contract pharmaceutical manufacturer PeptiStar in March 2018 having participated as a limited partner for venture capital firm Pangaea Ventures a year earlier.
Alex Tepper, formerly a managing director of GE Ventures, the former corporate venturing subsidiary of industrial and power technology producer General Electric (GE), joined US-based startup studio Human Ventures. Tepper took on a senior managing director position at Human Ventures, ending six years at GE Ventures. He joined the unit in 2012 as global director of innovation before becoming a managing director two years later. Prior to joining GE Ventures, Tepper had held various roles at payment services firm American Express during a seven-year stint at the company. Founded in 2015, Human Ventures is a venture capital firm and studio incubator that helps early-stage technology startups develop, providing funding once they have graduated from the process.
Pedro Irujo, an adviser for Cemex Ventures, the strategic investment arm of Mexico-headquartered building materials supplier Cemex departed the unit at the end of 2018. Irujo helped launch the Spain-based arm in 2016, having participated in designing the corporate venturing and open innovation scheme, scouting and investing in early-stage ventures. Irujo had been at the parent company’s digital consulting subsidiary, Neoris, from 2005 to 2016, helping it build its presence in Europe, the Middle East and Africa. After joining Cemex Ventures, he remained a member of Neoris’s executive committee and advisory board until mid-2018.
Eli Groner, previously director-general of the Israeli prime minister’s office, joined Koch Disruptive Technologies, an investment subsidiary of US-based chemicals and energy conglomerate Koch Industries, as an Israel-based managing director. It finances companies in diverse industries in the US and abroad. Groner assumed his previous position in 2015 and liaised between the prime minister of Israel, Benjamin Netanyahu, and various government departments. In this capacity, Groner advised Netanyahu on national budget negotiations and economic policies. He also co-chaired a China-Israel joint economic task force and oversaw National Cyber Bureau as well as the National Program for Smart Mobility launched by Israel in January 2017.
US-based hardware product maker Stanley Black & Decker (SBD) promoted investment manager Michael Mahan to managing director of its corporate venture capital unit, Stanley Ventures. Selected as one of GCV’s 2018 Rising Stars, Mahan was the first member to join the unit when it launched in 2016. In his role as investment manager, he was involved in deals for robotic companion developer Pillo Health and oil and gas refinery system provider Arix Technologies.Stanley Ventures typically invests from seed to series B stage in startups with a focus that is compatible with SBD in areas such as oil and gas and hydraulics technology.
John Wong left his director of corporate development role at wireless mobile technology producer InterDigital and joined US-based industrial appliance manufacturer Honeywell as director of ventures. The corporate venturing arm, Honeywell Ventures, was founded in 2017 and concentrates on early-stage companies working on technologies such as advanced manufacturing, internet-of-things and materials science as well as software and analytics startups. Wong will invest in IoT and smart building technology developers on behalf of the unit, which maintains a portfolio that includes industrial IoT technology providers FogHorn Systems, Element Analytics and Soft Robotics. In addition to joining InterDigital in late 2018, Wong had been a principal at venture capital firm NextStar Partners since 2016, focusing on IoT, mobile and connected technology developers, retaining the position until last month, according to his LinkedIn profile.
Juliet Zhu, formerly a Singapore-based director at Fosun RZ Capital, a corporate venturing vehicle for Fosun, joined Malaysia-headquartered second-hand vehicle marketplace Carsome as chief financial officer. Zhu was hired by Fosun RZ Capital in early 2018 as a principal concentrating on e-commerce, financial technology, logistics and mobility deals. She became director of Southeast Asia a year later and shifted her focus to automotive, social media and new retail startups. Zhu will lead Carsome’s growth strategy, identifying new business opportunities and engaging with the tech ecosystem on behalf of the company, building partnerships and conducting mergers and acquisitions deals in addition to helping it raise equity and debt funding.
Michael Brandkamp, formerly managing director of High-Tech Gründerfonds, a German state and corporate-backed venture capital fund, left to become a general partner at European Circular Bioeconomy Fund (ECBF). ECBF will be established in Luxembourg to accelerate late-stage companies and bring circular technologies – an economic system aimed at eliminating waste and the continual use of resources – to market. The European Commission was a cornerstone investor as part its work on developing so-called blended finance. Brandkamp will now have to raise private capital to blend with the state funding. The EIB and commission is working on more blended finance initiatives as it prepares for next year’s budget lasting from 2021 to 2027 (called Horizon Europe) with a focus on sustainable development goals.
JSW Ventures, the corporate venturing unit for India-based steel and energy conglomerate JSW Group, hired Sachin Tagra as a partner ahead of a first close of its second fund. Tagra joins JSW Ventures from media house Network18 Group, where he headed its corporate venture capital subsidiary, Capital18. JSW Ventures reportedly received approval for the second fund from Indian market regulator SEBI and will look to raise external capital. Its Rs 1bn ($15m) first fund in 2016 was entirely backed by the Jindal family, which owns JSW.
Server Agirman left energy management technology producer Schneider Electric’s corporate venturing unit to become director of new ventures at Mitsubishi Electric Automotive America. Agirman had spent more than four years running Schneider Electric Business Incubation Program in Silicon Valley as a part of Schneider Electric Ventures along with the company’s Innovation at the Edge program. As part of the incubator, Agirman co-founded eIQ-Mobility, a US-based startup backed by Schneider Electric that is working on technology that could enable and accelerate electric mobility at scale.
Florian Loebermann, head of corporate venturing at Germany-based chemicals producer Altana, became managing director of 3D printing company DP Polar. His deals included a $32m round for Israel-based digital printing technology provider Velox in November 2018 in which he took a board seat. Loebermann said Volker Mansfeld, head of corporate development at Altana, would maintain its corporate venturing after two years of operations. Loebermann had previously been a partner at venture capital firm Munich Venture Partners, where his deals included Sonnen, a battery provider sold to oil major Shell after he had left the board.
Syngenta Ventures promoted investment manager Shubhang Shankar to managing director. Shankar spent three years as an investment manager, having joined the company after being a project leader at consulting firm Boston Consulting Group in India. The move came after colleagues Katrin Burt and Derek Norman left for other agriculture-focused investment vehicles. Shankar took on board observer positions at portfolio companies including Precision Hawk and Planet after Burt’s departure. Burt was made an MD at Wheatsheaf Group, the family office for the Grosvenor family in the UK, after almost five and a half years in the same role at Syngenta Ventures. Norman, a former head of Syngenta Ventures, had already joined Germany-based chemical and pharmaceutical producer Bayer as vice-president of investments.
Grant Allen joined SE Ventures from ABB Technology Ventures, the corporate venturing arm of power and automation technology producer ABB. Allen, a fixture on GCV’s Powerlists, had been head of ventures for ABB since early 2017. Kurt Kaltenegger, a GCV Rising Star in 2017, was appointed head of ABB Technology Ventures. He joined ABB Group in 1991 as a development engineer before moving to ABB Technology Ventures in 2010, and was most recently head of technology at the fund. SE Ventures’ other new senior partner is Varun Jain, who had led the global early-stage practice at mobile chipmaker Qualcomm’s corporate venturing unit.
Jérome Joaug was promoted to partner at Aster Capital, a venture capital firm managing €520m ($550m) through multiple funds raised with major corporations and institutional players. Joaug had joined Aster in its UK office as a principal in March 2018, and his early deals included PacketAI, Hadean and Wluper. He had previously been a serial entrepreneur, co-founding Cambridge Nanosystems out of his research at the University of Cambridge, and Nymbly, a low-power internet-of-things platform.
Next47, a corporate venture capital vehicle of Germany-headquartered industrial equipment and appliance producer Siemens, hired Adiari Vazquez as a UK-based associate. Vazquez had been a Portugal-based investment manager at Caixa Capital, the corporate venturing fund operated by financial services firm Caixa Geral de Depósitos, for more than three years, and oversaw early-stage deals in smart energy and materials. Vazquez will help Next47 identify startups disrupting established sectors including industry, infrastructure, manufacturing, construction and agriculture.
Alexander Hain left his position as head of Wincubator, Germany-based water pump system maker Wilo’s corporate innovation subsidiary, and joined Sweden-headquartered energy company Vattenfall as senior venture development manager. Hain will help devise innovative business models for Vattenfall in renewable energies, digitisation and decentralised energy generation through the Germany-based open innovation platform, Greenfield, which was launched by the company in November 2016. Hain joined Wincubator in late 2016 and oversaw strategic investments in building automation and water innovation. The unit provides startups with between €500,000 ($560,000) and €1m ($1.1m) of funding in addition to business and technical advice, and industry contacts.
Mark Brooks, associate director for innovation and strategic partnerships at the US-based Association of International Certified Professional Accountants (AICPA), joined corporate venture capital unit Syngenta Ventures, the corporate venturing arm of Switzerland-based agribusiness Syngenta. It has been a subsidiary of Chinese state-owned enterprise ChemChina since 2017. Brooks said: “It will be a neat match for me in that it combines my early career experience in ag/science, my own startup experience, and recent fintech experience with the AICPA/CIMA (Chartered Institute of Management Accountants) startup accelerator.”
Itziar Estevez Latasa, a former principal at Next47, joined France-headquartered venture capital firm Iris Capital as a Germany-based partner. The move comes after nearly a decade in corporate venturing at Siemens, initially at Next47 predecessor Siemens Venture Capital. Estevez Latasa’s exits had included software management platform Black Duck, which was acquired by Synopsys for $565m in late 2017, and Thinkstep, which was bought by risk management services provider Sphera.
Jessica Straus, previously an entrepreneur-in-residence at GE Ventures, US-based industrial and power technology producer General Electric’s corporate venturing arm, joined Dundee Venture Capital as a venture partner. Dundee Venture Capital is a seed-stage fund with offices in Omaha, Chicago and Minneapolis. Straus will be based in Silicon Valley and her role entails growing portfolio companies and exploring new innovation ecosystems on behalf of the firm. Straus wrote in a post on LinkedIn: “As venture partner in San Francisco, I am focused on strengthening [Dundee’s] network on the coasts so we can help our companies get from seed to series A and beyond.”
Vipin Agarwal left his position as senior director for India at Fosun RZ Capital. Agarwal was in the job for 20 months, during which time he led 11 early and growth-stage deals, taking board seats with nine portfolio companies including online parenting network operator Mylo and human resources software producer Kredily. A separate report by VCCircle suggested Agarwal was looking to launch his own venture capital fund soon.
TDK Ventures hired Andrew Maywah and Anil Achyuta as investment directors. Achyuta was a US-based director of external innovation and strategy at personal care product manufacturer L’Oréal from 2016, where he led research and development partnerships, investments and mergers and acquisitions deals in materials science, medical aesthetics and digital health. Maywah had been a China-based partner for boutique private equity firm Silver Tiger Capital since 2016 and oversaw cross-border healthcare, education and technology, media and telecoms deals for the firm. He also co-founded tech startups in the US and China.
Mitsubishi’s Ippei Akiyoshi discusses its innovation strategy in the first of the Leadership Series of podcasts as part of the Global Venturing Review site.
The GCV Analytics’ definition of the industrial sector encompasses manufacturing equipment, artificial and advanced materials, industrial chemicals, space and satellite tech, 3D printing, robotics and unmanned aerial vehicles, agriculture and agtech and other sub-sectors.