Home Investment domains Smart industry

Smart industry

General

VP Capital has been active in the Smart industry since 2007. We have (direct and indirect) investments in:

  • Development of intelligent sensors and connected systems
  • Sustainable building material
  • Delivering circular and smart city solutions
  • Circular & waste solutions
  • Smart solutions in industrial automation, supplying industrial components, installation solutions
  • Automation of business processes
  • Smart components

Vision

Smart industry innovations will drive the transition from a linear focused approach to production towards a more network-centric approach, and herald a transition from mass production towards mass customisation. At VP Capital, we see the smart industry playing a prominent role in the progress towards a more sustainable future. We are open to investments in companies or funds contributing to the key challenges of the Smart Industry domain.

The following key challenges are defined by Sinzer:

Ambition

In the smart industry, VP Capital's ambition is to invest in these sustainable solutions:

  • Invest in smart industry solutions increasing circularity, resource efficiency and extending the lifecycle of products.
  • Innovations that decrease the energy demanded across the industry.
  • Prioritize investments which have quantified their environmental and social impact.
  • Invest in areas of the industry where human capital is expected to surge as a result of smart industry innovations.

We also have the ambition to make donations that contribute to the following solutions:

  • Initiatives fostering technological education in order to empower people in the digitized future and further accelerate the efficiency of implementing new innovations, while contributing to the challenge of enabling everyone to progress through digital & technological society.

Domain report Smart industry

For each of our investment domains, a more detailed report on key challenges, investable solutions and investment criteria has been made.
View the report of our Smart industry investment domain here.

Sustainable progress within the smart industry domain

With VP Capital, we want to contribute to sustainable progress. We screen our investment portfolio in terms of ESG and Impact. Read more about this in our Progress Report via the button below.

Progress Report

Read more about the different challenges below:

Increased demand for new equipment, devices and materials
The process of automation, digitization and integration of devices connected to the internet poses two challenges. First, many existing devices become obsolete and need to be replaced. This will result in an increased flow of end-of-life product, which need to be disposed or recycled. Second, new demand for equipment and devices puts pressure on the demand for raw material, metals such as lithium and other rare earth elements. Circular models need to be developed and put into practice to address this challenge.

The environmental footprint of smart industry
The implementation of innovations brought forth by the smart industry is accompanied by an increase in energy demands. For example The integration of IoT, IoS and CPS in smart production facilities requires massive data centers to be built, accompanied with an increasing demand for energy. The digital transition, as it is implemented at this moment, results in an annual growth of the energy footprint of digital technologies of 9 to 10%. This has to substantially come down for the solutions to really contribute to a more sustainable world.

Cybersecurity
The ultimate goal of automation and digitization is to make sure that all the information is processed within different organizations within the value chain as quick as possible. This means that many different aspects of the production chain are linked to each other. And that poses a cyber security problem. Connecting all these different links within society through IoT (Internet of Things) and IoS (Internet of Services) poses a challenge where one vulnerable node within the network could disrupt entire networks.

The impact of virtual services platforms
The transition towards mass customization is accompanied by a focus on digital technology is driving a surge on big data. This will result in an increase of large virtual services platforms. The current growth and influence of these platforms has exceeded all expectations. This requires society to reconsider its understanding of ownership, learning and social relationships. This is accompanied by a shift where intellectual property will become more important than material property. This requires an industry-wide response to prevent a situation where all value is capture by a few organizations.

Employment pressure due to robotics and technician shortage
The smart industry and increasing robotization will make up to 800 million human jobs obsolete by 2030, posing a challenge to employment worldwide. The population that is above 35 years old or with relatively little access to technology will have to learn to work with systems that use the IoT, blockchain, AI, quantum computing, and other unknown digital technologies. This same population did not grow up using the internet, nor were they taught anything about the internet in school. Developing their technical capabilities in the coming years will pose a challenge. A second challenge is the shortage of technically schooled workers.

Portfolio companies

Some examples of companies in our current portfolio within smart industry:

Interested in a possible collaboration?

View our specific investment criteria and contact us if your project meets these requirements.

Contact