Author: John Tough / Source: VentureBeat
There are nearly 300 industrial-focused companies within the Fortune 1,000. The medium revenue for these economy-anchoring firms is nearly $4.9 billion, resulting in over $9 trillion in market capitalization.
Due to the boring nature of some of these industrial verticals and the complexity of the value chain, venture-related events tend to get lost within our traditional VC news channels.
But entrepreneurs (and VCs willing to fund them) are waking up to the potential rewards of gaining access to these markets.Just how active is the sector now?
That’s right: Last year nearly $6 billion went into Series A, B & C startups within the industrial, engineering & construction, power, energy, mining & materials, and mobility segments. Venture capital dollars deployed to these sectors is growing at a 30 percent annual rate, up from ~$750 million in 2010.
And while $6 billion invested is notable due to the previous benchmarks, this early stage investment figure still only equates to ~0.2 percent of the revenue for the sector and ~1.2 percent of industry profits.
The number of deals in the space shows a similarly strong growth trajectory. But there are some interesting trends beginning to emerge: The capital deployed to the industrial technology market is growing at a faster clip than the number of deals. These differing growth trajectories mean that the average deal size has grown by 45 percent in the last eight years, from $18 to $26 million.
Detail by stage of financing
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