HardTech Reads vol. 5

The latest YC S24 Demo Day, South Korea is going big on American manufacturing, Get to know the Manufacturing USA network and more.

Paulina Szyzdek / HardTech VC

Oct 05, 2024

Welcome to the exciting exploration of the dynamic world of HardTech🤘

HARDTECH NEWS

➡️ The latest YC S24 Demo Day reveals significant trends in startup funding and emerging AI technologies.

Key Takeaways:

B2B software dominates funding: The breakdown of YC S24 funding shows that 162 out of 254 pitching companies were in the B2B sector.
Rise of industrial startups: There’s a notable resurgence in the industrials sector, with 26 companies presenting innovative solutions.
AI robotics are future-proofing labor: Companies like Ultra and Azalea Robotics are pioneering robots that promise to outperform human workers in specific tasks.
AI is automating complex processes: Startups are developing AI tools to automate intricate tasks, indicating a shift towards fully autonomous operations in various sectors.
Specialized knowledge is essential for AI advancement: As AI becomes integral to industries, the demand for specialized knowledge and efficient developer tools is increasing.

➡️ South Korea is going big on American manufacturing

South Korean companies invested $21.5 billion in US projects in 2023, more than any other country. South Korea overtook Taiwan, which held the top spot in 2022.
South Korean giants Samsung, LG, and Hyundai are investing billions in U.S. facilities to produce electric vehicles, batteries, and semiconductor chips, primarily in Southern states known as the Battery Belt. This surge in investment is driven by aligned interests between the U.S. and South Korea in emerging technologies, especially amid geopolitical tensions and the Biden administration’s efforts to reduce dependence on China. South Korea aims to enhance its global standing in high-tech and automotive manufacturing.

Key factors fueling these investments include the 2022 Inflation Reduction Act and the CHIPS and Science Act, which offer substantial subsidies and tax incentives for green technology projects in the U.S. As a result, South Korean outbound investments to the U.S. soared to over half in 2023, compared to just 18% in 2019, while investments in China plummeted from 11% to 1%. A significant portion of these U.S. projects are in the automotive and electronics sectors, exemplified by Kia’s plant in Georgia benefiting from EV tax credits and Hyundai’s $7 billion investment in Georgia, projected to create nearly 40,000 jobs.

➡️ Get to know the Manufacturing USA network

The Manufacturing USA network includes 17 institutes aimed at focusing on workforce development, innovation, and collaboration to strengthen U.S. manufacturing. The Manufacturing USA network’s collaborative model is driving technological progress across various sectors, with institutes like America Makes, ARM, MxD, and LIFT leading innovations.

America Makes has accelerated the adoption of 3D printing in industries like aerospace and healthcare, cutting costs and reducing waste. It played a key role during the COVID-19 pandemic by coordinating 3D-printed PPE production, demonstrating the potential of on-demand manufacturing.

ARM Institute enhances U.S. manufacturing through robotics, automating complex tasks for small and medium businesses. During the pandemic, ARM developed robotic systems for PPE manufacturing, and it trains thousands in robotics annually.

MxD advances digital manufacturing and cybersecurity, helping manufacturers use digital tools to boost efficiency. It developed digital twin technologies and improves cybersecurity by setting industry standards.

LIFT focuses on lightweight materials for industries like automotive and aerospace, promoting fuel-efficient products through advanced manufacturing techniques.

STARTUPS TO KNOW

➡️ Forterra secured $75 million in a Series B funding round led by Moore Strategic Ventures, XYZ Venture Capital, and Hedosophia. Based in Clarksburg, Maryland, the company is developing an autonomous driving system tailored for defense and industrial applications in both on-road and off-road settings.

➡️ Seegrid: Autonomous Mobile Robots (AMR) Solutions successfully raised $50 million in a Series D funding round led by Giant Eagle Incorporated and G2 Venture Partners. Seegrid is creating autonomous tow tractors and lift trucks designed to transport pallets within warehouses and other industrial environments.

➡️ Mendaera (Robotics and AI for the mainstream) obtained $73 million in a Series B round spearheaded by Threshold Ventures, with additional investments from Lux Capital, PFM Health Sciences, and Fred Moll, among others. It’s a handheld medical robotics platform facilitates needle-based procedures such as biopsies, vascular access, and pain management.

➡️ Quantum System augmented its Series B funding by over $30 million, bringing the total to approximately $110 million. The new investment was led by Notion Capital and Porsche SE. Quantum Systems manufactures small unmanned aerial systems with vertical take-off and landing capabilities for both commercial and defense purposes.

➡️ Vsim raised $21.5 million in Seed funding led by EQT Ventures. This Manchester, England-based company is creating technology that enables robotics firms to quickly develop physics simulations, thereby accelerating their research, lowering costs, and fostering innovation.

➡️ Pyka garnered $40 million in Series B funding led by Obvious Ventures, alongside participation from Piva Capital, Prelude Ventures, Metaplanet Holdings, Y Combinator, and others. The startup is developing autonomous electric aircraft for applications in agricultural crop protection, commercial cargo transportation, and defense logistics.