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THE NUTS & BOLTS
?? Heading to Austin for all the festivities next month? With?Energize Capital, we're co-hosting?an Industrial Sustainability Happy Hour in downtown Austin on March 8.? This will be a special, by-invitation only gathering of founders, investors, and innovation leaders focused on industrial tech. Be there!
Many thanks to event partners?J.P. Morgan, Insperity, and Wilson Sonsini. Request an invitation here.
Keep reading for the latest digital industrial news.
GET SMARTER
A monthly feature on what's top of mind at Ironspring Ventures
Hot Takes from Manifest 2025
Coming off another fast and furious Manifest: The Future of Supply Chain & Logistics innovation conference in in Las Vegas, two clear observations stood out to us:? ?
Real vs Hype in AI: AI applied to the supply chain is clearly the discussion of the day (specifically the leverage of new GenAI and AgenticAI technologies), but similar to the prior AI hype cycles, there is a painfully obvious difference between companies building products to solve real customer pain points vs. startups building AI technology for technology’s sake. The products that deliver meaningful solutions for end users are the ones to watch (and the companies we’ll likely see exhibiting at Manifest next year instead of flaming out). And a sub-theme to watch aligned to the application of these AI technologies is the thesis that AI supply chain vendors can “Sale Work, Not SaaS.” Only time will tell if this services business model wrapped in AI language will break through.? ?
Supply Chain is Everywhere: “Supply chain” as a term often gets associated to the Transportation & Logistics sector in isolation, but that’s far too narrow of a mindset in 2025. Key sectors like Construction and Manufacturing have a large part of their profit margins dependent on highly efficient Transportation & Logistics planning, procurement, and orchestration workflows. Savvy founders are seeing the opportunity to connect the dots here and sharp corporate innovators are seeking out solutions to make their operations more seamless and integrated (vs. thinking of Transportation & Logistics as outsourced and/or siloed).
Manifest, which attracted 7,200 attendees (including 1,500 startups and investors) from 60 countries, sets the tone for the year when it comes to supply chain tech and trends. We expect the above themes to spark much discussion in the months to come. Time will tell what the big supply chain issues of the day will be in early 2026!
THE HEAVY HITTERS
???Maneuvering Through Change in Manufacturing
- Tariff talk continues to dominate, with the?latest news an enactment of a reciprocal tariff policy for all current and potential U.S. trading partners (meaning that the U.S. will match all tariffs implemented against it now or in the future by other countries). This comes after President Trump ordered new import duties on China, Canada, and Mexico that were set to go into effect Feb. 4 (with implementation for Canada and Mexico delayed by 30 days) and blanket import duties on steel and aluminum products (which will be effective March 12).?We'll be watching how supply chains adjust?in the face of pending and implemented tariffs.?
- Against the backdrop of strained U.S.-China tensions in particular,?many tech companies are moving quickly to shift production out of China and look for suppliers in other countries, creating opportunities for LatAm and other countries in Asia to move up the value chain. Previous efforts to diversify production away from China focused on moving only the assembly of products outside of the country - this current wave involves shifting entire factories making components such as sensors, printed circuit boards, and power electronics, according to S&P.?
·?????? Such significant relocation projects require large upfront investment in equipment and parts, making these supply chain shifts likely more permanent, says the S&P analysis.???
·?????? In a survey by the American Chamber of Commerce in China, 30% of respondents said they were “considering or had begun moving to alternative places” for manufacturing.?
- Most manufacturers (92%) invest in upskilling their workers, though 47% still use spreadsheets for code management, finds a new report from Ironspring portfolio company Copia Automation which sheds light on the hidden costs of relying on outdated tools in the manufacturing and distribution sectors. The 1st Annual State of Industrial DevOps Workforce Report: People, Process, and the AI-Powered Future, which surveyed 200 executives, reveals that manufacturers lose an average of 45 hours every month to debugging tasks, largely due to reliance on ineffective?tools, and calls for Industrial DevOps to address skill gaps and support employee needs (among other key findings).??
- Demand for smaller warehouses is up, however, supply is not. More companies are looking to distribute inventory across multiple smaller facilities to house goods closer to customers, speed up delivery, and cut shipping costs (vs storing goods at one large centralized facility), though just 8% of all warehouses built in 2024 were less than 100,000 square feet, making these smaller footprint spaces hard to come by. In Q4 2024, the vacancy rate for US warehouses under 100,000 square feet was 3.9%, well below the 6.7% overall vacancy rate, according to Cushman & Wakefield.?
???Key Considerations in Construction
- Tariffs are also contributing to a spike in construction prices, with input costs up 1.4% in January, the largest monthly increase in two years, according to Associated Builders and Contractors. The surge can be attributed to a rush to purchase materials ahead of potential tariffs, with high energy costs (crude petroleum, natural gas, and unprocessed energy prices are all up) also a factor. Overall, the cost of inputs to construction is now a staggering 40.5% higher than in February 2020.?
- Nonresidential construction planning got off to a strong start in 2025 showing growth across all sectors, says a report from Dodge Construction Network, which also highlights that the The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, jumped 5.6% in January. Institutional planning, which includes hospitals and education, posted the month’s highest growth with an 8.7% increase, while commercial planning rose 4.2%. Year over year, commercial planning surged 37% compared to January 2024, while institutional planning increased 9% during that period. Data centers remain a key driver of commercial growth, as excluding these projects, commercial planning would have risen only 13%.?
·?????? A strong January does not guarantee a robust year in construction, as uncertainty around fiscal policies, persistent labor shortages, and high construction costs pose headwinds for the industry.??
- 3-D printing is preparing for the future, with The International Code Council working toward developing a new set of guidelines that will apply to “3D Automated Construction Technology for 3D Concrete Walls.” The standard will address requirements for 3D automated construction technology and 3D concrete used to build interior and exterior 3D concrete walls and included in the directive are components built with or without structural steel reinforcing used as bearing walls, non-load bearing walls, and shear walls in one-story or multi-story structures.?
·?????? These standards have been in the works since October 2023 and a meeting will be held this month for the evaluation committee to discuss public comments on the proposal.?
???What is Up and Down in Transport & Logistics
·?????? And once again, the port of Laredo, TX was the No. 1-ranked US trade gateway among the nation’s 450 airports, seaports and border crossings.?
- M&A activity picked up across the transport and logistics sector in 2024, with The 2025 Tenney Group Annual Report finding that M&A transactions increased by 159% (to $90.5B) from 2023 levels. Though far behind 2022 numbers (when deal activity reached $193B), stronger M&A activity in the second half of 2024 brings deal momentum into 2025.??
·?????? If the freight industry continues to bounce back and see higher rates, M&A activity may follow as greater profitability typically leads to better valuations (and more deals).?
- And in an M&A deal that supports our 2025 prediction around the “rise of the trailer,” transportation and logistics powerhouse Wabash announced it is acquiring TrailerHawk.ai, a provider of advanced cargo security and smart access management technologies, in a move to enhance its Trailers as a Service (TaaS) offering. The transaction demonstrates Wabash’s commitment to combining physical and digital technologies, creating “connected ecosystems that drive efficiency and reliability across the supply chain.” Terms of the deal were not disclosed.?
- Trading halted abruptly for shares of logistics software heavyweight WiseTech Global late last week?"relating to matters of governance". The pause will be in effect until the board makes an announcement around the company’s founder and CEO Richard White who is facing legal action over worker protection violations or February 24th, whichever is earliest. White had also faced accusations of personal misconduct prior to this news.?
?EV Push and Pull in Alternative Energy
- The Trump administration has pressed pause on funding to expand the country's network of EV charging stations, putting in limbo billions of dollars allocated to states with current and future projects. Existing contracts will be honored, but "no new obligations may occur” under the National Elective Vehicle Infrastructure Program launched under the 2021 Infrastructure Law with the goal to build a network of highways with EV charging stations every 50 miles.?
·?????? States had expected to receive about $3B for future EV charging?construction projects, and this pivot hinders the country's transition away from gas- and diesel-powered vehicles.?
·?????? Production of the new Tesla semi-truck is expected to start late this year and ramp up to volume next year.?
- All commercial fleets now have access to Rivian electric vans, paving the way for a broader expansion of EV delivery vehicles. In 2019, Amazon agreed to purchase 100,000 Rivian vans as part of a mega deal (that also included a $1B investment into the startup) which granted Amazon exclusivity of the vans. However, the agreement dissolved in 2023 after Amazon had only bought about 20% of the promised amount, opening up the opportunity for Rivian to sell to all fleets.??
·?????? Amazon says it will eventually purchase the 100,000 vans it committed to and it remains Rivian’s largest shareholder, with an estimated 17% stake in the company.?
FROM OUR TEAM
On?Heavy Hitters: The Digital Industrial Podcast, Co-Founder & General Partner?Ty Findley?speaks with PTC Velocity Group General Manager Dave Katzman?on building a GTM engine at OnShape (before it was acquired by PTC in 2019), how his Onshape experience has influenced his work at PTC (including the role of the Velocity Group within the company) and a look at what’s hot/hype in manufacturing innovation today. Listen to the episode?here!
The fourth annual Mixin at Manifest happy hour was a huge success! Many thanks to Dynamo Ventures, Fontinalis Partners, and Schematic Ventures for teaming up with us to co-host what has become a must attend event at Manifest, the annual supply chain innovation conference in Las Vegas (now attracting 7,000+ attendees), and to event partners SVB, Goodwin, and Gillespie Manners!
THE DEALS AND?M&A
Deals
- X-energy, a Rockville, Md., developer of small modular reactors, raised $200M?in Series C extension funding from Segra Capital Management, Jane Street, Ares Management, and Emerson Collective. The round total is now $700M.
- Presto, an Oakland, Calif., developer of charging-management software for EV fleets, raised $15M?in seed funding from USV, Congruent Ventures, Powerhouse Ventures, and Jetstream.?
- Tyba, an SF-based energy storage optimization platform, raised $13.9M?in Series A funding. Energize Capital led?and was joined by Pear VC, Mobilize Climate Capital, Borusan Ventures, Powerhouse, Wireframe, Virta, and Lorimer.
- MacroCycle, a Cambridge, Mass., plastics upcycler, raised $6.5M?in seed funding from Clean Energy Ventures, Volta Circle, Indorama Ventures, KDT Ventures, and Neotribe Ventures.
- 75F, a Minneapolis-based company commercial HVAC automation company, raised $45M?in Series B funding. Accurant International led?and was joined by Carrier Global, Climate Investment, Breakthrough Energy Ventures, Next47, and Wind Ventures.
- Self Inspection, a San Diego-based auto inspection platform, raised $3M?in seed funding. Costanoa Ventures?and?DVx Ventures co-led and were joined by Westlake Financial.
- InvestNext, a Detroit-based real estate investment management platform, raised $15M?in Series B funding led by?Beringea.
- Chestnut Carbon, a developer of nature-based carbon removal, raised $160M?in Series B funding from Canada Pension Plan Investment Board, Cloverlay, and DBL Partners.
- ANA, a Henderson, Nev-based maker of hybrid mobile generators, raised $50M?from?S2G Investments.
- Oso Semiconductor, a Mountain View, Calif., developer of low-cost chipsets, raised $5.2M.?Engine Ventures?led?and was joined by Entrada Ventures, Berkeley SkyDeck, and J-Ventures.
- Mattoboard, a 3D interior design platform, raised $2M. Acrobator Ventures?led?and was joined by Blue Field Capital, SoundBoard, Home Depot Ventures, and Masco.
- Endera, an Ottawa, Ohio-based electric bus maker, raised $36M. Magnetar led and was joined by Pulse Fund and Pritchard Auto Co.
- Beam, a fintech for construction,?raised $11M?in Series A funding.?Zigg Capital?led?and was joined by Accel, RXR, Teamworthy, 20Sales, and Spearhead.?
- Keychain, a New York-based CPG manufacturing platform, raised $5M?led by Bright Pixel Capital.
- K2 Space, a Torrance, Calif.-based satellite platform, raised $110M?in Series B funding. Lightspeed Venture Partners and Altimeter Capital?co-led?and were joined by insiders Alpine Space Ventures?and First Round Capital.
- ICON, an Austin, Texas-based company that builds homes using 3D printing, raised $56M?in Series C funding co-led by NVP and?Tiger Global.?
- Figure, a Palo Alto, Calif.-based robotics startup, is in talks to raised $1.5B?led by Align Ventures?and Parkway Venture Capital?at a $39.5B?valuation.
- Saronic, a Texas-based drone-boat builder, raised $600M?at a $4B?valuation. General Catalyst led the round.
- Terra CO2, a low-carbon building materials business,?raised $82M?in the first close of a Series B round. Generation Investment Management's Just Climate, Temasek's GenZero, and?Eagle Materials led the round.
- Fetii, an Austin, Texas-based ride-hailing firm for younger riders, raised $7.4M?in seed funding led by Mark Cuban,?with participation from Y Combinator and Goodwater Capital.
M&A, IPOs, & Fundraising
- Titan America, the U.S. business of Belgian cement giant Titan Cement, raised $384M?in its IPO. It priced at $16 per share (vs $15-$18 range), and will list on the NYSE (TTAM).
- Badger Meter (NYSE: BMI) acquired SmartCover, an Escondido, Calif.,?provider of sewer monitoring solutions, from?XPV Water Partners?for $185M?in cash.
- Tiger Infrastructure Partners acquired a control stake in Bolder Industries, a circular-economy infrastructure platform for the rubber, plastic and petrochemical industries. Bolder had raised over $80M?from firms like CIM Group and Crestwood Energy.
- Texas Ventures Acquisition III, an industrial tech SPAC, filed for a $200M?IPO.
- Archer Aviation?(NYSE: ACHR), an eVTOL developer, raised $300M?from BlackRock and Wellington.
- Hidden Harbor Capital Partners?acquired Coast to Coast Logistics, a Deerfield, Ill.-based?provider of drayage freight brokerage services.
- Global Infrastructure Partners?is in advanced talks to buy a majority stake in a renewable energy unit and a solar plant from listed Brazilian miner Vale.
- Karman, a Huntington Beach, Calif.-based maker of systems for space and defense?programs, raised $506M?in its IPO. It priced 23M?shares at $22, versus plans to offer 21.1M?shares at $18-$20, and listed on the NYSE (KRMN). Trive Capital?held nearly a 69% pre-IPO stake.
- Global Infrastructure Partners?hired Morgan Stanley and Mitsubishi UFJ Financial Group to find a buyer for its control stake in?Vena Energy, a Singaporean renewables firm that could be worth up to $10B.
- Owens Corning?(NYSE: OC) agreed to sell its glass reinforcements business for $755M?to India's Praana Group.
- United Rentals?(NYS: URI) abandoned plans to acquire H&E Equipment Services (NAS: HEES), a seller of material handling and earthmoving equipment, after H&E accepted a $5.3B?bid from Herc Rentals (NYS: HRI).
- One Equity Partners?agreed to acquire Wheeler Fleet Solutions, a Somerset, Pa.-based vehicle parts and services business, from VSE (Nasdaq: VSEC).
THE JOBS
There are 140+?open roles?on our jobs site. Check these out!
