Hardware

Trends
2019
Foreword
An ever expanding hardware ecosystem Thank you to our authors
The world of hardware continues to grow beyond the consumer electronics of and key contributors
just a few years ago. The rise of automation, connectivity and sensors has Anant Pathak
opened the door for startups from all over the world to solve new problems Cyril Ebersweiler
and rethink how our physical world works. This has led to a shift in the market Duncan Turner
due to many traditional “software” companies making bigger investments into Dylan Crow
hardware, new entrants rising quickly, and open doors for new startups to Garrett Winther
emerge with compelling new hardware. Jo-An Ho
Ji Ke
Kate Whitcomb
A snapshot of the future
This report highlights some of the trends we see every day as investors in the
world of hardware. The ecosystem is evolving quickly and, as early-stage Creative Design By
investors, we see the signs of what lies ahead. In short, we’re as excited as Vitaly Vyazovsky
ever to continue investing into hardware startups, knowing they’ll have a Lisa Shcheglova
massive impact on our everyday lives.
Venture Capital Program for Hardware HAX is part of SOSV, a global early stage fund with
USD $650M AUM. SOSV invests through a set of
HAX runs a hands-on program to support our flagship programs, which HAX is proud to have as
investment’s technical and business development. Our sibling organizations.
offices are strategically located in Shenzhen and San
Francisco, the most important ecosystems for
hardware entrepreneurs.

To date, HAX has invested in over 200 companies.

These include businesses in consumer tech, health
care, enterprise IoT, industrial robotics, and advanced
manufacturing technology.
Acknowledgements Disclosures

The authors thank the hundreds of startup The data quoted in this report belongs to
founders we work with, our analyst and those who conducted the research.
creative teams for continuing to take this
report to new levels, and the many people who Many of the examples used are SOSV/HAX
are part of the growing hardware ecosystem. investments at various stages of development.

There are many exceptional startups shown

that are not part of SOSV / HAX portfolio and
included as great examples of hardware
enabled businesses.
Table of Contents Hardware
Trends 2019

/01 /02 /03 /04

Hardware Consumer Health B2B
Investment

Funding Flexible Pricing New Entrants 5G

M&A Micro Retail Regulatory Pathways Agriculture
IPOs Mobility Sensing & ML Construction
China Funding China EV Pre & Post Care Manufacturing
Microfluidics
/01
Hardware
Investment
Overview
Hardware
Trends 2019
Hardware Financings
Numbers rising with better global tracking
8000
392
More hardware companies are getting funded. Venture capital investments
in companies that are ‘hardware enabled’ have continued to rise through
2H 2018 and 1H 2019. This is, in part, due to more data coming from China,
which has traditionally been difficult to track. 6000

264*

Number of funding rounds 219

Number of funding rounds (China) 4000
Funding raised (USD) 162
150 155
142 142 143
110 91 2000
90 85
50 48
45
17 26
0
1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018 2H2018 1H2019*

Note: This includes deals between $1M-500M. If pre-seed deals were included, Source: original inspiration from BOLT State of Hardware Financing + amended data via Crunchbase
the total number of financings would be much larger.
Hardware
Trends 2019
Hardware While many factors (such as CVCs
and the blurring of lines between software
IPOs and hardware) can increase hardware investment,
are it is hard to ignore the momentum hardware
enabled companies are gaining in the public
$54B $12B
increasing markets.
NIO
$6.4B

$4.4B
$4.1B
$4.5B
$3B
$2.9B $2B
$1.3B $900M
$130M $1.5B

$654M $1.1B
$45M $107M $150M$145M
May 2014 Dec 2014 Apr 2015 Aug 2015 Dec 2015 Apr 2016 Aug 2016 Dec 2016 Apr 2017 Jul 2017 Nov 2017 Mar 2018 Aug 2018
*Announced/upcoming IPOs
Hardware
Trends 2019
 $1.9B

$600M
Valuation at IPO (USD)
$457M This has been increasingly evident
in the past 9 months with a large
$400M number of IPOs, particularly in the
medical device space.
$323M
$284M
$238M $215M

$120M
$58M

Hardware IPOs from Q4 2018 + H1 2019

Hardware
Trends 2019
Hardware unicorns
increasing
IPO/M&A China

The volume of hardware unicorns has been

increasing since 2012, with over 50% coming
from China in 2018.

A unicorn is defined as a privately held

company with a valuation of >$1B.

2012 2013 2014 2015 2016 2017 2018 2019

Hardware
Trends 2019
Consumer tech is
driving unicorns
Consumer

Despite being a difficult area for early

stage investment, consumer tech has been
the most reliable source of unicorn births.

2012 2013 2014 2015 2016 2017 2018 2019

Hardware
Trends 2019
Medical devices
less so
Consumer Health

Health care is a surprisingly low driver of

unicorns. However, there are multiple cases
of pre-revenue or early IPOs, which means
the company goes public before reaching
unicorn status (>$BN valuation).

2012 2013 2014 2015 2016 2017 2018 2019

Hardware
Trends 2019
B2B tech driving
more value
Consumer Health
B2B
B2B based investments have consistently
driven value as larger industries look to digital
transformation through new technology.

2012 2013 2014 2015 2016 2017 2018 2019

Hardware
Trends 2019
Chinese EV explosion
unsustainable
Consumer Health
B2B Automotive
It is the automotive sector (mostly driven
by incredible growth in China) that has
seen the largest number of unicorns in
the past year and a half.

2012 2013 2014 2015 2016 2017 2018 2019

Hardware
Trends 2019
$140B China USA Europe

$105B

$70B

$35B

$0B
2015 2016 2017 2018 2019Q1
Source: Dow Jones Venture Source

Chinese VC set Investment in Chinese GPs has

scaled back dramatically in the
corporates (both in the US and
China). We predict this will

to hit a record
past year (pre-dating the trade bounce back in 2020 as China
war). Local Chinese looks to invest in homegrown
governments have traditionally tech talent.
low in 2019 been supportive of early stage
VC along with large Chinese Hardware
Trends 2019
Chinese GPs struggling to raise funds
Fundraising by China-focused VCs 2008-19

New fund managers and early stage VC have suffered the High LP drop out rate
most as later stage funds continue to raise capital. (mostly government)

500 $50B

400 $40B
Aggregate
capital
300 raised $30B
Number of
funds closed
200 $20B

100 $10B

0
0
2008 2009 2010 2012 2014 2015 2016 2017 2018 2019
Source: Preqin, Chart by: TechNode/Nicole Jao
Hardware
Trends 2019
The shortage of Equity financings for China-based,
VC-backed companies (2015-2019)

LP commitments 50 1200

to GPs in China is 37.5 900

directly affecting 25 600

financings 12.5 300

This drop in funding has started to impact the

total number of equity financings for Chinese 0 0
companies. 1Q'15 2Q'15 1Q'16 3Q'16 1Q'17 3Q'17 1Q'18 3Q'18 1Q'19

Source: DowJones

Hardware
Trends 2019
Investment
areas within
Hardware
Trends 2019

We invest in

4
key areas
B2B
 Hardware 40
Trends 2019

30
HAX has invested
in over 200 startups
20

10

We split them into 4 tracks 0

'12 '13 '14 '15 '16 '17 '18 '19
/02
Early and growth stage hardware
funding has seen a resurgence.
Consumer hardware
Since 2014 the number
of consumer hardware fundings funding picking up *Full-year

but still off peak

projection
has remained fairly stable,
but the average amount of money $2.1B*
has trended up.
142 140
131 135
128 132*
Consumer companies tend to die
quickly or scale rapidly. As new Investments
business models emerge we Deals $2.84B
expect more investor focus on 75 74
the consumer space, which has
previously (and rightly) been $2.04B
viewed with caution. 40
$1.65B $1.65B
Hardware $1.2B
Trends 2019 $1.09B
$0.82B
Rounds above $500M are not included in $0.68B
this data. The largest 2019 funding round
included is a $420M financing for Pax Labs

2012 2013 2014 2015 2016 2017 2018 2019

Source: data via Crunchbase
Technology is adapting Convenience, experience and affordability have
always been desirable to consumers.

to, and driving changes Automation, sensors and connectivity have enabled

in consumer purchasing
entirely new products and business models. These
areas will continue to grow and affect our day-to-
day lives.
behaviour Hardware
Trends 2019

Zume Pizza JUMP Tonal

Dockless scooter and Digital weight machine
Automated pizza with in-built personal
delivery restaurant bike sharing acquired
by Uber trainer
 Hardware

Tech is enabling new

Trends 2019

home experiences
Just as the video game console disrupted video
arcades and the VHS disrupted the cinema, when it
comes to the home, hardware enabled convenience
wins over centralized locations.

500 Active customers by quarter

400
Soul Cycle
300

200

100
Peleton
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
201 201
Source: Second Mesure
Spending is up, yet we are If we normalize personal
consumption expenditure

rejecting high priced items

and wages we see
consumer expenditure
has risen dramatically

$24 40,000
Real average hourly
earnings
$20
34,000
$16

$12 28,000
Personal
consumption
$8 expenditure per
capita 22,000
$4

0 16,000
1975 1980 1990 1995 2000 2005 2010 2015

Source: FRED, U.S. Bureau of Economic Analysis Hardware

Trends 2019
 Increasing LTV (lifetime value) is the
most important factor for
consumer facing companies. Many,
like Netflix and Spotify, give access
to undervalued content in order to
draw users to their platform then
monetize them throughout their
lifetime.
We consume a vast amount of
content on these platforms for
nearly no money.

Hardware
Trends 2019

Consume more online,

buy less offline
Hardware enabled
companies often
balance large
upfront costs with
credit based
monthly payments
While 0% APR and great return policies
work well to drive business, we know that
debt is scary, especially to millennials who
came of age during the 2008 financial
crisis.

Hardware
Trends 2019
 32%
Making monthly

Debt is scarier
payment

What scares
millennials
than death
Accruing Relying too
much on credit
interest about their
33% credit cards? 20%

None of
the above
7%
8%
Not understanding
interest rates for millennials
Source: CNBC: Credit Card Debt Scares Millienials

What scares you the most?

This is an increasingly important trend for 33.2% Credit card debt
consumer companies to watch.
20.4% Dying
They are (or will be) selling to a generation 16.8% The threat of war
who are saving less to finance big
purchases, and are also rejecting debt. 11% Not being able to retire
6.4% Climate change
Hardware
Trends 2019 12.2% None of the above
Source: CNBC: Credit Card Debt Scares Millienials
Flexible, non-commitment One of HAX's consumer companies, Nura,
has launched a revolutionary pricing model

pricing plans are the future which has seen their number of customers
increase dramatically.

Hardware
Trends 2019
Happiest Baby Grover
Per night rental for Monthly rentals for
“Snoo", a connected everyday consumer
baby bassinet electronics

New subscription models are enabling

new consumer companies to emerge
Hardware
Trends 2019
 Hardware
Trends 2019

Automation is also
changing D2C
There are more and more examples of robotic
automation enhancing customer experiences: a vending
machine that interacts like a human, or a restaurant Cafe X
where automation creates a truly customized product. Automated artisanal
coffee vending machine

Zume Pizza Spyce

Delivered pizza Fast-casual restaurants
prepared by robots with robotic cooks
 Large retail overheads Automation allows new micro-retail
possibilities that just weren’t possible
before.
don’t always make sense D2C companies can now offer

China is leading the way services as well as bespoke

products. This is especially prevalent
in China where tiny gyms, karaoke
with miniaturized retail rooms and automated nail salons are
on the increase.

Hardware
Trends 2019

Nail printers The Gym Pod M-Bar BingoBox

Vending machines for Single occupancy Individual karaoke Unmanned, small
toe and fingernail art exercise gyms booths footprint stores
HAX Oasis

investments Decentralized
recycling stations

in the past
to cope with the
paper shortages
in China.

6 months
Presso Bowl
Dry cleaning at a Small footprint
fraction of the cooking and
footprint, time and assembly
cost of traditional systems for one
methods. bowl meals.
The biggest change in consumer
behavior has been in mobility

JUMP
Dockless scooter
and bike sharing
acquired by Uber Hardware
Trends 2019
Autonomy Electric Shared Connected

Mobility Hardware
Trends 2019

is rapidly evolving, Industrial incumbents, new players,

and governments are all scrambling

and fragmenting
towards new technology,
infrastructure and business models
with no clear winners in sight.
 Hardware
E-hailing $56.2B Trends 2019

Semiconductors $38.1B

AV sensors and
ADAS components $29.9B
$120 billion invested
Connectivity/
infotainment $20.8B in mobility startups
Electric vehicles
and charging $19B
Investment
in the last 24 months
Batteries $14.3B activities
in mobility
AV software and
mapping $13.5B since 2010
Telematics and
intelligent traffic $12.4B
The evolution and uncertainty of mobility
Back end/
cybersecurity $9B has led to major venture investment into
mobility and related technologies.
HDMI and voice
recognition $7.4B
Source: McKinsey Analysis, CapitalIQ, Pitchbook
Growing pains of trying to The task of integrating mobility solutions
has run into challenges with public
perception, complex technology
move faster than policy and integration, and lack of infrastructure.

infrastructure
While the core technologies continue to
develop, there are issues with how they
translate to the real world.

Hardware
Trends 2019
 Hardware
Trends 2019

Sustainable
mobility
companies
are built as
integrated
ecosystems
The emergent winners are taking a more
holistic approach to their offering with GoGoRo
go-to-market strategies that scale and Taiwanese electric scooter
and battery swapping
integrate effectively. infrastructure and a 2018
unicorn.
 Blurring as
Hardware lines
the key
driver to utilization
between public
and longevity
and private
Companies are developing or redesigning
Nuro
Small format
autonomous delivery
vehicles
mobility
hardware to optimize it for specific uses
(especially when off-the-shelf hardware
doesn’t do the job)

There's been a recent

resurgence in home and
automobile ownership but these
numbers are way down from the
peak years. Expensive upfront
purchases
Bird Zero present a personal
Einride cash
Revamped flow
scooters problem.
Autonomous cargo built for robustness
trucks and trailers and longevity Hardware
Trends 2019
 ~$1.60 Hardware will define
Total the profitability of
Driver
operation the next generation
~40%
cost per mile
of mobility:
~$1.00
Ride- Utilization
Longevity
~20% sharing
Ride- ~40%
sharing
Operations +
~30%

Operating Cost
maintenance

Operations +
maintenance ~5% Hardware
~50%
Hardware 15% Mobility systems will continue to move towards more
shared, commercially operated systems. These will be
more reliant on the hardware's ability to maximize its
UberX Autonomous output and be fit for the job.
taxi
Source: McKinsey, BCG, Economist
Hardware
Trends 2019
 Hardware
Trends 2019

PushMe
Youibot Instant recharge pod
Commercial vehicle network and electric
inspection robots bikes

Supported by
a new generation
of infrastructure
Infrastructure has proven to be just as important Charge Point
as the hardware itself, leading to new, high growth World’s largest electric
businesses that support the future of mobility. vehicle charging
network
Electrification
has created new
battlegrounds
for personal
vehicles
Electric vehicles have shifted expectations
and opened the door to new industry
players, changing the dynamics within
the competitive automotive industry.

Hardware
Trends 2019
 HAX MOBILITY POV

Instant and Natural driving Top rated in

Battery linear torque dynamics crash and
electric with low center safety tests
vehicles of gravity
have great
DNA

Always on Lower Less servicing

Tesla (and now other
automakers) have connectivity operating and
taken advantage of the
architectural benefits
costs maintenance
of electric vehicles
that amplify the
qualities buyers love
most.

Hardware
Trends 2019
 -0.5%
Global personal
-1%
China personal
+62%
China EV market
vehicle market vehicle market

China EV is booming against a backdrop

of global personal vehicle decline Hardware
Trends 2019
Less complex Lower
power train manufacturing Lower
footprint barriers to
entering
the market
Making an electric
vehicle has proven
more straightforward
than internal
combustion engine
vehicles, making it
easier for new players
National and to enter the industry.
Battery price is local government
dropping incentives Hardware
Trends 2019
 Hardware
Trends 2019

486 EV makers in China The China EV market has

become increasingly
competitive, racing to
capture consumer demand
Including 9 unicorns and $18B in investment since 2011 over the last few years.
EV makers competing on Manufacturers are creating more
than just a vehicle in order
to differentiate themselves.
experience and ecosystem You don't just buy a car, you buy
services, software and experiences.

Hardware
Trends 2019

Giant Screens

NIO Tesla Byton

Members only clubs Dog mode for pets Full width in-car screens
for new EV owners alone in the car and experiences
 Hardware
Trends 2019

US automotive Projected
China EV

510 44 486 50*

auto makers auto makers

1913 1929 2018 2025

20% CAGR US industry

volume growth 38%* Projected CAGR EV
China volume growth

A familiar bubble about to burst, The Chinese EV market is expected to grow but
there are clear signs of massive consolidation in
but happening much faster and the coming years. These changes mirror the US
automotive industries growth and consolidation
with lasting effects of 100 years ago. The results will shape the
global automotive landscape.
/03
Health care is unbundling, creating
opportunities for non-health companies
to disrupt existing models
Hardware
Trends 2019

Big tech Consumer Retail Insurers

Big tech companies are Consumers have more access Retail has taken advantage The insurance industry is
engaging differently with to at-home health information of new ways to provide adapting with new tech-
health care, health data through at-home tests for medical services on-site and focused insurance
and the FDA. everything from fertility to create one-stop shops. companies like Oscar Health
allergies. emerging.
Apple Watch has
become a symbol
of a new age in
digital health
regulation
Apple launched the 4th version of the Apple
Watch, which has De Novo FDA approved EKG
monitoring, in 2018.

Other tech companies are also developing

FDA-grade wearables, including Fitbit, Aetna,
Verily, J&J, and Garmin.

Hardware
Trends 2019
Consumer health testing kits A new generation of testing,
monitoring and rehabilitation

available on retailers like products allow for a more

convenient patient journey while

Amazon for at home use. also relieving the burden on the

healthcare provider
infrastructure.
Hardware
Trends 2019

Seein Health EverlyWell Bisu

FDA cleared at-home At-home allergy testing Dietary health testing
fertility testing available on Amazon, CVS through urine analysis
The first of many
AI-driven software
as a medical device
(SaMD) offerings

IDx is the first ever autonomous AI system cleared

by the FDA to provide a diagnostic decision for
diabetic retinopathy and recommend further
evaluation with a specialist.
 860
769 Hardware
Trends 2019
688
645

A record year
606
570 $14.68

Deal 473

count
154
283
$11.7B
137 for health tech
$8.3B
funding
Total $7.1B

Funding $6.2B

Q4
Q3 VC funding into health care hit $14.6B
Q2 in 2018. Device deals were $4.1B in 2018, up 40%
Q1 from $2.9B in 2017, led by a surge in surgical
$2.9B
$2.3B
$2.8B robotics. (Silicon Valley Bank data).
$2.0B

$1.2B 2018 also saw numerous biotech IPOs and the

potential for a positive investment trend.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source : Startup Health

FDA 510(k) is becoming
more supportive of innovation Hardware
Trends 2019

44
Number of 510(k)s Novel device Number of Granted
cleared approvals 106 de novos
3,203 3,207
98 31
86 91 28
26
3,137 71
3,126 61 61 18 18
3,095 51
13
3,066
10
25 29 7
3,024 4 3
3,008

2,957
2009 2012 2015 2018 2009 2011 2013 2015 2017 2019
Source : FDA

There has been an increase in class II and class III medical devices going
2,807
through the de novo process due to the availability of new technologies. With
data showing that de novo pathways tend to lead to more successful exits and
2009 2012 2015 2018 higher deal values, being novel and complex is no longer a bad thing.
Source : William V. Donovan
 Hardware
Trends 2019

Successful Access
companies are
improving the
following areas Cost

If you look at what has been driving the success

of startups in the medical technology and
medical device spaces, the core tenets are
consumer access, cost and improved outcomes.
These factors are required for successful
fundraising and go-to-market execution.
Outcomes
 Machine learning powered AI/ML has opened up a world of
potential capabilities for medical

hardware is making a huge

device companies.

These companies are capitalizing on

impact on access to machine learning technology to
provide improved, immediate care in

healthcare Hardware
Trends 2019
more accessible settings, not just in
the clinic.

Feel Axem Japet KINEXCS

Continuous anxiety and The first brain-sensing Robotic equipment offering Monitoring solutions to enhance
depression monitoring and headset for advanced treatment of lower at-home rehabilitation
interventions neurorehabilitation back pain
 Butterfly(?) Intelligent
implants

Strados Butterfly Zennea Intelligent Implants

Monitor for respiratory Pocket sized medical Therapeutic sleep Wireless electronics that steer
health management imaging device wearable for snoring and monitor bone growth

New sensing technology Improved sensing technology is giving

patients access to information that they

can dramatically reduce

may not currently have outside of a
clinical setting.

costs for providers The potential for improved outcomes is

vast with improved wellness at one end
of the spectrum, and avoiding a life-
threatening event through advanced
Hardware forecasting at the other.
Trends 2019
 And impact
outcomes
Pinpoint during and after
Robotic aid and support for
precise surgeries
hospital
NERv
care
Detects gastrointestinal leaks
after surgical procedures
New technologies are creating less-invasive
options for pre- and post-monitoring as well
as diagnosing more critical conditions,
including surgical re-sectioning (Nerv) and
tumor detection (PinPoint).

Hardware
Trends 2019
Microfluidics continue to power new MF have the ability to extract large amounts
of valuable data from a small sample,
possibilities in health, optimizing improving access, outcomes and cost.
In the future, point-of-need testing will
cost, access and outcomes streamline consumer access to diagnostic
Hardware information, with implications for human
Trends 2019 health and beyond.

Bisu Zio Health Sight

Dietary health testing Biosensor platform for Blood count device
through urine analysis bodily fluids for point-of-care

Biomeme BBB Bitome

BIOPSIN
Mobile, real time PCR Devices for early stage Compact and portable
platform and devices diagnosis and monitoring chemical analysis tools
/04
B2B
Technology drives growth by increasing productivity in two different ways

Making
processes
 Changing the
more efficient process

Sensor enabled software Robotics and automation

5G will be a historic
single factor
technology
improvement
for B2B tech
Hardware
Trends 2019
5G is not one Enhanced mobile
broadband
single use case,
it is an
amalgamation
of three,
enabled by
different
technologies
Hardware
Ultra-reliable and
Trends 2019 low latency
communications

Massive machine-type
communications
Source: International Mobile Telecommunication - IMT 2020
Much of the Enhanced mobile
broadband
hype around 5G
is consumer-
focused Gigabits Work and play
/second in the Cloud

Hardware
Trends 2019

Ultra-reliable
and low latency
communications
Massive machine type
communications
 Enhanced mobile
The true value lies in broadband
enterprise sensing and
industrial automation
Hardware
Trends 2019

Low cost Cloud processing

Low power communication Reliability
consumption Cloud control
Massive Ultra-reliable and
machine-type low latency
communications communications
Building
penetration
Simplified sensor Gateway-free Security
deployment comms
 Building
Sensor penetration

deployment Low cost

communication

barriers are Low power

consumption

disappearing Simplified
sensor
Smart meters deployment
Pipeline management
Agriculture sensors
Smart cities
Building automation
Smart grid
Asset management Massive Gateway-free
Asset tracking machine-type comms
Hardware
Trends 2019
communications
 Cloud processing Remote access
Cloud control and control
enabled
Reliability
technology
Applied augmented reality
Remote operation
Service robotics
Gateway-free comms
Critical controls
Ultra-reliable Autonomous fleets
Security and low latency
communications Hardware
Trends 2019
 5G deployment challenges created new
opportunities for technologies to scale
Hardware
Trends 2019

ACiist Mesh++
ACIIST Mesh++
Smart city & IoT WiFi anywhere with self-
connectivity infrastructure powered mesh nodes
DRAFT
 Hardware
Trends 2019

B2B
Construction
 Index of US labor productivity Construction
300
Relative
improvement
labor
250
Non-farm business
labor productivity +153%
productivity
is not just
CAGR +1.9%
200

150 lagging, it's

100
-19%
declining
Hardware
50 Construction labor Trends 2019
productivity
Yet the industry is set to double
0 in size in the next 20 years.
1964 1972 1980 1988 1996 2004 2012
Construction Construction's productivity problem is amplified
by the fact that we always need more of it. The

hard facts
industry needs to build more infrastructure for
more people, but with less money and less labor.

people are added

200K
of general contractors
daily to urban
areas
50% struggle to find
experienced labor

$1TN
financing shortfall Hardware
Trends 2019
to keep up with
demand

Source: http://www3.weforum.org/docs/WEF_Shaping_the_Future_of_Construction_full_report__.pdf
 $23B* Restoration $1.3T*
/demolition
$6B cost of demolition
+ $17B cost of disposing Design and
construction
demolition waste/year
The lifecycle of
infrastructure

Maintenance
$340B* $369B*
Utilities residential and
+ $51B (cleaning management commercial utilities
expenditure in the US) expenditure in the US
*US buildings

To comprehensively solve the A building needs to be thoughtfully designed and

constructed, run at optimum efficiency, be maintained
construction productivity problem, regularly to extend its lifespan, and then ultimately be
we need to think about the entire restored and/or demolished to allow for new creation.
Hardware
lifecycle of built infrastructure. Trends 2019
 $1.3T Design & Construction

Restoration / Productivity
$1.5T Demolition is severely affected
by real world variability
Rebartek
Robotic rebar pre-
fabrication Construction occurs in the physical world.
Solutions for this industry can’t be digital
The lifecycle of only; software needs additional sources of
infrastructure information from a variety of workflows to
unlock new avenues for productivity.

Maintenance As such, it needs

a combination of sensors and
hardware automation
Utilities to gather data and take
corrective action where
Management required.

Mechasys Shape Measure

Hardware
Digital projection and Automated scanning Trends 2019
positioning tools and cutting for flooring
Hardware
Trends 2019 Breezi Flair
Sensors for air filters to Intelligent vents to eliminate
determine HVAC health uneven heating and cooling in
the home

Augmenting NotifAI
infrastructure Protects your home from

to save cost and

water, mold, and appliance
related failures or disasters

$369B improve experience

Utilities Whether it's the facade, the HVAC or the air filters,
management sensors have evolved to share new types of information.

This not only improves comfort for building occupants, but

also presents significant utility cost benefits and reduces
the pressure on infrastructure.
Maintenance $340B

New business models

Restoration /
for continuous Demolition
maintenance
Avidbots Somatic
Automation makes it possible to perform Autonomous floor cleaning Robots that clean
maintenance more frequently and for a for large indoor spaces commercial bathrooms
lower price per unit. Interestingly,
it also makes it easier for property
management companies to
offer traditionally dull and
dangerous, value-add
services on a recurring
basis.
Hardware
Trends 2019

Viabot Plecobot
Modular robots that Autonomous learning of
perform outdoor glass skyscraper facades
maintenance tasks
 Hardware Sustainability focused
Trends 2019
restoration, demolition
and disposal
Eventually, infrastructure
degrades and the end of the
lifecycle requires
management for removal and
disposal.

Maintenance

Wastack Craft Robotics

Analytics and management Machine vision and robotics
solutions for landfills for automating building
facade restoration.
 Hardware
Trends 2019

B2B
Agriculture
 Plant-based protein is surging to
support global growth
In the developed world, this trend is driven by consumer
20% Plant-based consciousness. In the developing world, it’ll be driven by
food increased living standards and a demand for more complete
nutrition
growth
120
World
8% 100

80
Developed
2% 60
Plant-based 2017 Plant-based 2018 All food 2018
40 Developing
Demand
for protein
Plant-based protein had its coming-of-age moment in 20
2018. The growth of plant-based food products far
0
outpaced the growth of all other food last year. 1961-1973 1973-1985 1985-1997 1997-2009 2009-2011

Hardware
Trends 2019 Source: https://plantbasedfoods.org/consumer-access/nielsen-data-release-2018/ Source: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5532560/
 Land use per gram of protein, m2
Beef/mutton 1.02

Pork 0.13
Fresh Produce 0.1
Poultry 0.08 The opportunity
Eggs 0.05 cost of animal
Dairy
Wheat
0.04

0.04
protein is too high
Rice 0.02
The pattern of use for land (and other resources) in
Maize 0.01 meat production is far higher than the gram for gram
plant-based protein equivalent. With increasing
Pulses 0.01 Hardware pressure on natural resources, there will be a
Trends 2019 necessary shift to serve global growth.

Source: Environment Footprint by Food Type (protein) - Clark & Tilman (2017)
 Clara Foods Not Company
Egg proteins from Plant-based mayo,

The most active

yeast fermentation milk and ice cream

early stage investor

in agriculture
in 2019 Perfect Day
Animal-free dairy
from microflora

At SOSV, we have a deep-seated belief

in supporting companies that build the
food supply of the future. Our food and
biotech focused accelerators have led
the charge in backing some of the
world's leading alternative protein
companies.
Abbot’s Butcher
Source: https://about.crunchbase.com/blog/agtech-food-tech-agfunder-2019/) Plant-based meat
alternatives
Precision agriculture Ultimately, plant-based proteins are useful for
shifting the end product from meat to plant-based.
maximizes output with However, the raw materials required are still a
product of farming. As a result, our emphasis on
less input Hardware
Trends 2019
precision agriculture still remains.

Nordetect
Nortdetect
A lab on a chip offering soil
Forward Robotics
Autonomous VTOL drones
testing for NPK optimization for longer flight times and
to reduce fertilizer usage larger range coverage in
and maximize yields. agricultural operations.

Tensorfield Apix
Robots to identify weeds Sensor analytics and
and kill them with hot oil automation for beehive
macrodosing instead of maintenance and colony
chemical fertilizers. health.
 Hardware
Trends 2019

B2B
Manufacturing
 Hardware
Trends 2019

In the future, every single The manufacturing sector is no longer

as simple as offline and online
component will have operations. Instead it is fully integrated
with real-time “digital twins”
a real-time digital twin of everything happening throughout
a supply chain.
Enabled by sensing The value of digital twins goes far
beyond where something is. It enables

in real time
deeper understanding and measures
that indicate quality, efficiency and
cost in the system.

Hardware
Trends 2019

Sound Vibration Humidity

Visual Temperature RF signal

Deeper insight
optimizes and
prevents costly Amper Technologies

downtime
Non-invasive performance
monitoring for manufacturers

98% of organizations say a single hour of

downtime costs over $100,000.

Digital manufacturing systems were

first used to prevent unscheduled
downtime or high cost inefficiencies.

Pulse
Pulse Industrial
Hardware Monitoring for fuel savings
Trends 2019 and downtime prevention
in industrial facilities
DRAFT
 Hardware
Trends 2019

Relayr M5 Stack
Modular product
Internet of Things development toolkit for
middleware for industrial connected products and
digital transformation equipment

Equipment as a service
starts with connectivity
and sensing
Connectivity and software integration enable new
Particle business models that can continuously add value
Fully integrated Internet of
Things platform for secure and scale beyond the initial hardware.
and scalable deployment
 Building trust across Connected manufacturing systems
are creating value across all stages

multiple stages of production, augmenting

relationships and adding
transparency between partners.

and partners Hardware

Trends 2019

AISight Smartex
Artificial intelligence to Detecting and preventing
monitor machine state defective production in
and usage in real time. the textile supply chain.
Making
Makingrobots
robots
more like
more likepeople
people

And people
more like
robots
Hardware
Trends 2019
 More tasks are being automated but people
and robots will need to work together
for the foreseeable future Hardware
Trends 2019

% of total time
7% 14% 16% 12% 16% 17% 18% spent on type of
task in industry

81%

64% 69%

% time that is
26% technically feasible
20% to automate with
9% 18% today’s technology
Management Expertise Interface Unpredictable Collect Process Predictable Source: McKinsey & Company
physical data data physical
 Hardware

Making people
Trends 2019

stronger, smarter
and more consistent
Employers are only adopting technologies that are
designed to work well with their employees, Crimson Dynamics
integrate into current work flows, and help Exoskeletons built for employees that
integrate within existing work flows
employees perform more safely and efficiently.

Nuada Magic Leap

soft exoskeleton wearable system that a spatial computer that lets you see and
helps users to hold heavy objects with interact with digital content in the world
their hands completely relaxed around you
Robotics are not only cost-reducing,
they are becoming easier to set up,
re-tool, and safer to interact with Hardware
Trends 2019

220
200
Cost of Labor costs
Collaborative
180 automation robotics
160 market
140
120
CAGR
100
80 50.31%
60
40 Robot prices $710M $12,303M

1990 1995 2000 2005 2010

2018 2025
Source: Economist Intelligence Unit; IMB; Institut für Arbeitsmarkt - und Berunfsforschung; International Source : Markets and Markets - Collaborative Robot Market
Robot Federation, US Social Security Data; McKinsey Analysis
 A race to scale platforms The collaborative robotics market is
booming. Emergent winners emphasize
Hardware
Trends 2019

that are flexible speed of development, integration time

and integrate with people and how well they work and share
environments with people.

Youibot Elephant Robotics

Robotic platform for mobile applications Collaborative robots that are quick to
within industrial settings develop and integrate across applications
 Hardware
Trends 2019
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