This newsletter marks our ten-year anniversary at Momenta, a decade focused on investing in and scaling companies powering the digitization of energy, manufacturing, smart spaces, and supply chain/transportation. While our first six years were 'normal' growth, the last four have been hyper-growth ones marked by the black swan events of the pandemic, global supply chain failures, and the war in Ukraine.
Yes, you read that right: each of these macro-economic headwinds created a tailwind effect for the Digital Industry and us with the three Rs of Resilience (aka Reshoring), Renewables (energy independence), and Remote Asset Management (the killer use case for IoT).
It appears that this tailwind effect will continue. Andrew Obin of BofA Global Research just published their 2023 outlook for industrials, predicting a doubling of annual growth in industrial automation over the next five years across North America and Europe, with demand for digital (cloud and software) scaling over 15% CAGR. This is driven by the demonstrated impact of digital in reducing manufacturing costs and energy, powered by reshoring initiatives in the US and EU and influenced by transformation initiatives such as Industry 5.0. In short, we see the next decade of Digital Industry outperforming our first at Momenta.
We thank you, our Digital Industry ecosystem, for continuing to turn to our practitioners and insights to help you analyze and activate Digital Industry for your companies. As you wind down over the holidays, we wish you a Momentous holiday season and a new year.
Momenta is the leading Digital Industry venture capital firm accelerating digital innovators across energy, manufacturing, smart spaces, and supply chain. Led by deep industry operators across its venture capital, strategic advisory, and executive search practices, Momenta has made over 50 investments with notable exits to SAP, PTC, and Husqvarna.
Feel free to schedule a call to explore your company's digital potential.