The past year has been very active for hardware. IPOs, acquisitions (and some spectacular failures) have made the news. With advancements in deep tech and automation, connected technology in healthcare, homes and offices, hardware is changing the way people experience and improve life and the world around them. This report is a summary of news from the hardware tech world; new movements we saw through working with startups, and some of our thoughts on the year ahead. A full copy of the report is available for download at: hax.co/hax-hardware-review-1H2018

1. 1H 2018 Edition
hardware
review

2. Thank you to our sponsors and partners

3. Foreword
The past year has been very active for hardware.
IPOs, acquisitions (and some spectacular failures) have made
the news. With advancements in deep tech and automation,
connected technology in healthcare, homes and offices,
hardware is changing the way people experience - and
improve life in - the world around them.
This report is a summary of news from the hardware tech
world; new movements we saw through working with startups,
and some of our thoughts about the year ahead. As early-stage
investors, we see new technologies ahead of others. We are
often asked why we’ve invested in certain areas. Our first
answer is always “amazing teams”, but going beyond that, we
included our views on particular sectors.
A lot can happen in a year. Almost too much. Our last report in
June 2017 counted 243 pages. We decided to increase our
publishing frequency to keep things more relevant and go
deeper into areas of interest.
OTHER HAX REPORTS
HARDWARE TRENDS 2017
HARDWARE TRENDS 2016
HARDWARE TRENDS 2015
THE STATE OF ROBOTICS 2015
3
THANK YOU TO OUR
AUTHORS & KEY CONTRIBUTORS
ANANT PATHAK
DUNCAN TURNER
CYRIL EBERSWEILER
BENJAMIN JOFFE
RHIANNA RICHARDS
ZONA LIU
CREATIVE DESIGN BY
- VITALY VYAZOVSKY
LISASHCHEGLOVA

4. About HAX
Program-Based Venture Capital for Hardware
HAX runs a hands-on program to support the companies we
invest in. Our offices are strategically located in Shenzhen and
San Francisco, the most important ecosystems for hardware
entrepreneurs.
To date, HAX has invested in almost 200 companies. Those
include consumer tech, healthcare, enterprise IoT, industrial
robotics and advanced manufacturing technology.
HAX is part of SOSV, a global early stage fund with US300M
AUM. SOSV invests through the following flagship programs,
which HAX is proud to have as sister organizations.
SOSV | Indie Bio | RebelBio | Chinaccelerator | MOX | Food-X
Contact us:
makeit@hax.co
WWW.HAX.CO
4

5. ACKNOWLEDGEMENTS
The authors thank the hundreds of startup
founders we work with, our analyst and
creative teams for continuing to take this
report to new levels, and the many people
who are part of the hardware revolution.
HAX STARTUPS QUOTED
5
DISCLOSURE
The data quoted in this report belongs to those
who conducted the research. Many of the
examples used are SOSV/HAX investments.
Notable exceptions are unicorns, millenicorns
(yes, it’s a thing), and companies that bit the
dust.

6. Hardware
Industry
Overview
TableofContents
6
8. M&As
9. Investments
10. IPOs
11. Unicorns
16. Consumer
28. Health
50. Enterprise
70. Industrial
7 12
Investment
Track
Overview
78
China
Investment
Landscape
79. Chinese Unicorns
80. Autonomous Vehicles
81. Industrial Robotics
82. Global VC Funding
83. China Rising as an Innovator

7. Hardware
Industry
Overview
/01
7

8. Buyer Company Value Date
Amazon Kiva $775M Mar 2012
Stryker Mako Surgical $1.65B Sept 2013
Apple PrimeSense $350M Nov 2013
Google Nest $3.2B Feb 2014
Apple Beats $3B May 2014
22014Google Dropcam $555M Jun 2014
Facebook Oculus $2B Jul 2014
Qualcomm KMel Robotics $25M Feb 2015
Fossil Misfit $260M Nov 2015
Gopro Skybotix n/a Dec 2015
Mattel Fuhu $21.5M Jan 2016
Mars Whistle $117M Mar 2016
Fitbit Coin n/a May 2016
Nokia Withings $191M Jun 2016
Zimmer
BioMet
MedTech $132M Jul 2016
Softbank Arm $32B Sep 2016
Fitbit Pebble $28M Dec 2016
Midea Kuka $3.9B Jan 2017
Fitbit Vector $15M Jan 2017
Electrolux Anova $250M Feb 2017
Hubbell iDevices $60M Apr 2017
Sumitomo Persimmon
Technologies
$32M Apr 2017
Softbank Boston Dynamics n/a Jun 2017
Softbank Shaft n/a Jun 2017
Intel Mobileye $15B Aug 2017
Apple Beddit n/a Aug 2017
John Deere Blue River $305M Sept 2017
General
Motors
Cruise $1B Oct 2017
Geely Terrafugia, Inc. n/a Nov 2017
Amazon Blink $90M Dec 2017
Assa Abloy August Home n/a Dec 2017
Logitech Revols n/a Jan 2018
Amazon Ring $1B Mar 2018
Meituan Mobike $2.7B Apr 2018
JUMP Uber $200M Apr 2018
Hardware M&A
Remains Strong
Disclaimer: While the data provided includes notable deals that happened in the world of hardware M&A,
it doesn’t cover every hardware M&A deal in this time frame.
8
M&A Activity
2012 2013 2014 2015 2016 2017 2018
36
62
69
50
57
4842
Source: Crunchbase
*Full-year projection
61*

9. Hardware
Financings Have
Increased
Note: these deals are $1M and above. If pre-seed deals
were included, the total number would be much higher.
0
1500
3000
4500
6000
1H2012 2H2012 1H2013 2H2013 1H2014 2H2014 1H2015 2H2015 1H2016 2H2016 1H2017 2H2017 1H2018
Number of funding rounds
Funding raised (USD)
243
143
162
142
155
142
150
110
8590
4550
1717
50 45
90 85
110
150
142
155
142
162
143
243
Source: BOLT State of Hardware Financing + amended data via Crunchbase
9

10. May 2014 Dec 2014 Apr 2015 Aug 2015 Dec 2015 Apr 2016 Aug 2016 Dec 2016 Apr 2017 Jul 2017 Nov 2017 Mar 2018
$60B*Hardware IPOs
on the Rise
$3B
$4.1B
$2.9B
$45M $107M $150M $145M
$1.3B
$2B
$4.4B
$654M
$1.5B
$130M
Source: Crunchbase* Announced / upcoming initial public offerings 10

11. Privatehardwarecompaniesshootingtounicornstatus
inrecordtime
8 hardware millenicorns founded since 2000
20142010 20152013 2006
20102017 20072001 2012 20092008
Reached $1 billion market valuation in the past year
Founded since 2000 and currently over $1 billion market valuation
Rocket systems and technologies
for payload deployment
Accessibility solutions for the
blind and visually impaired
Surgical robots for
medical applications
Metal 3D printing for
industrial manufacturing
Autonomous vehicles
and driverless cars
Connected consumer
and home devices
Digital medicine
platform
Connected fitness
and wellness
Intelligent, dynamic
glass maker
Sustainable, cloud-
based waste and
recycling solutions
Wearable that enables
digital interaction in a
cinematic way
Cellular network via
low-throughput
communication for
connected devices
11

12. HAX
Investment
Track Overview
/02
12

13. Consumer mostly focus on re-imagined and
personalized experiences for home, work and leisure.
Health covers both regulated medical devices and
non-regulated consumer health technology.
Enterprise and Industrial can sometimes target the
same customer, but with distinct offerings.
Enterprise focuses on sensing technologies designed
to reduce inefficiencies in businesses, enable new
business models, and increase value in output.
Industrial startups perform physical tasks, completed
by service robots or manufacturing technologies.
Categorizing startups in such away helps
us monitor resources, funding
requirements and success by area.
There is some overlap and companies
sometimes pivot from one to the other.
We’veinvested
inover200startups
We split them into 4 tracks
13

14. From B2C to B2B
When HAX started investing in 2012, Fitbit had already been in the market
for three years. Crowdfunding campaigns were beginning to gain traction
with consumers. Connectivity was breathing new life into existing
consumer hardware.
While we still invest in a similar number of B2C companies each year, our
healthcare and B2B investments (infrastructure and automation in
particular) have dramatically increased.
14

15. Starting in 2016, we significantly
increased our investments in
healthcare, enterprise and industrial.
0
10
20
30
40
'12 '13 '14 '15 '16 '17 '18
While most people
know us for our work
in consumer tech…
first half
15

16. Consumer
Hardware Trends
16

17. Consumer hits are
difficult to predict
'Go big or go home' is not
a sustainable investment thesis.
Proving user traction whilst
staying lean is.
We invest in lean consumer tech companies that create
re-imagined and customized experiences for home,
work and leisure.
We look for companies that bring specialized value with
their technology, have a geographical advantage and/or
an ability to sell in enterprise channels.
We believe that if a consumer technology can provide a
vastly better experience, offer a high perceived value,
and figure the right product-market fit, its creators stand
to build a brand of significance.
The good news: advancements in connectivity now afford
companies the ability to tap into consumer internet and
social network dynamics to scale quickly. Innovation in
sensing technology and materials is also enabling
unprecedented bespoke experiences.
What’s more, consumers are opening up to the idea of
premium services and subscriptions with loved and
trusted brands.
17

18. 18
2012 2013 2014 2015 2016 2017 2018
Investments ($M)
$1.23B
$2.84B
$2.04B
$1.65B
$1.09B
$0.82B
$0.68B
$2.16B*
108* *Full-year
projection
Consumer electronics funding are down in 2018 after a high in 2017 - by the number of companies funded, average
funding and total amount. Investor confidence in consumer hardware took a hit as some high-profile companies ended
up being zombies (i.e. nowhere close to a venture-scale exit).
Consumer hardware
funding at four year low
Source: BOLT State of Hardware Financing
+ amended data via Crunchbase
Deals
40
75
131
142 140 135
62

19. Winding Down
JAWBONE, founded 1997
Raised $983.8M
Once the king of the bluetooth speaker market,
the company is relaunching itself with health-
related IP as Jawbone Health (we'll keep an eye
on this space).
Post-Juicero
BadNews
After the spectacular shut down
of Juicero - which burnt through
close to US$120M - and a series of
crowdfunding scandals, it seemed
that consumer hardware was
replete with failures.
Here are some of the most talked
about in the past year.
Bites the Bullet
Teforia, founded 2014
Raised $17.1M
Offered at a $1k price point, the tea maker
didn’t get enough traction. The management
team, however, seems to be making another
go of it with a more reasonable $249.
We Had High Hopes
Doppler Labs, founded 2013
Raised $51.1M
With a team of PhDs and some great tech, we
were rooting for this one. Unfortunately, colossal
burn rates and delayed market entry (a frequent
cause of failure) can be troublesome for keeping
investors engaged.
Out of Business
Navdy, founded 2012
Raised $43M
In a surprising turn of events, given the amount of
funding, Navdy hit a series of troublesome issues
and delays that resulted in the company
necessitating the liquidation of its assets.
19

20. Ring, founded 2012
Raised $209.2M
$1B exit 2018
Outdoor home security company
Acquired by Amazon
August Home, founded 2012
Raised $73M
$UND exit 2017
Smart home access and locks
Acquired by ASSA ABLOY
Anova Culinary, founded 2013
Raised $1.8M
$250M exit 2017
Smart kitchen appliances / sous vide
Acquired by Electrolux
iDevices, founded 2009
Raised $20.1M
$60M exit 2017
Connected home products
Acquired by Hubbell
Blink, founded 2009
Raised $5.8M
$90M exit 2017
Wi-Fi home security cameras
Acquired by Amazon
On the flip side, there were some
remarkable and profitable exits
recently.
Post-Juicero
GoodNews
20

21. The timeline of August Home’s acquisition path to ASSA ABLOY is
a good example. In April 2017, the company signed a deal with
Home Away, where their tech would enable remote management
of vacation rental homes.
In September 2017, they then partnered with Walmart to make
deliveries more efficient. This consumer-enterprise overlap in
product-market fit enabled an acquisition to ASSA ABLOY one
month later.
Increasingly, we're seeing that consumer products
need alternative revenue streams. These are either
driven through increased specialization, like
consumer companies moving into health and
providing valuable health data, or by expanding to
B2B.
21
FOUNDED SEED SERIES A DEBT
FINANCING
SERIES B SERIES C PARTNERSHIPS ACQUISITION
$2M
$38M
Hardware got hard
Mar 2013Nov 2012 Sep 2014 Mar 2015 Apr 2017Jul 2017 Sep 2017 Oct 2017
$8M
Nov 2013
Enterprise strategy drives revenue
$25M

22. Speech as an interface
when typing is not an option
Mara
Founded 2014
Voice-assisted
running app
Sensible Object
Founded 2015
Alexa-enabled
trivia games
Novel Effect
Founded 2015
Voice interactive
story time
Toymail
Founded 2013
Connected kids toys
and entertainment
Voice has become a race for large tech companies - but it’s also a fertile place for
startups. Clearly small companies are not poised to compete with the likes of Alexa,
Siri, Cortana or Google Assistant, but they are surfacing unique ideas and
applications for what’s possible with voice technology when typing is not possible.
22

23. Speech
asameans
forcognitive
development
Winner of “Best in Baby
Tech” @ CES 2018
Oyalabs, Founded 2017
Oto is the first monitor for your baby’s healthy brain
development. Monitoring your baby's learning environment,
it gives you personalized tips to help your baby become
smarter and happier.
www.oyalabs.com
We look at a lot of natural language processing-based
companies and were delighted when we met Oyalabs,
a startup with a new take and specialization in health.
Rather than using speech to substitute typing, they use
voice as a way to gauge the level of cognitive
development of a child; delivering metrics that track the
number of words and interactions, as well as the breadth
of vocabulary.
start-up
23

24. SpeakingofEducation…
The U.S. STEM market is overcrowded.
In China and other emerging markets,
however, we see huge upside potential.
The former stems from the continuous
interest and investment by the Chinese
government, who is taking a public-private
approach to revamping its policies in terms
of science and engineering spend.
Also at play - an increasing investment in
STEM startups. Case in point: $1.07B was
invested into Chinese EdTech in 2015 alone.
Source: Bloomberg
24
China
India
USA
Russia
Iran
Indonesia
Japan 195,000
206,000
335,000
561,000
568,000
2,600,000
4,700,000
The countries with the most
STEM graduates
Recent graduates in science, technology, engineering, mathematics (2016)
Source: World Economic Forum via Forbes/Statista

25. SmartBuilding
BlocksforFuture
Creators
A great example of a Chinese STEM startup in this space
is Tinkamo, a smart toy that introduces young children
to programming and tactile problem-solving in line with
their neuro-motor development.
The building blocks leverage voice technology to
incorporate speech into play, making Tinkamo another
great example of how AI is being applied to learning.
It also illustrates how consumer companies can connect
to organizations: in this case, educational
establishments.
tinkamo.com
start-up
25

26. Keurig and Nespresso have been a 'recurring
revenue' hit with their pods, but consumer
preferences are changing: people now desire fresh
coffee. The growth of Blue Bottle and Starbucks
Reserve speaks to this trend.
Coffeeis
Changing
26

27. orendacoffee.com
UltimateBespokeCoffeeatHome
Brewing coffee for your unique taste profile.
Orenda also offers a marketplace for fresh roasted
coffee beans by partnering with roasters. Combined
with its technology to understand people’s taste
preferences, the company closes the loop: it supplies
people with the ultimate coffee-as-a-service with
suggestions of beans based on individual taste
profiles.
start-up
27

28. Tech-Enabled Healthcare:
Consumer Health
& Medical Devices
Track partnership with
28

29. *Source: Deloitte
29
Decentralized
diagnostics
devices &
increasing data
from constant
sensing
Health is our fastest growing investment category
and the number one potential future market in our
mind.
Why? Lifestyle-related diseases are now increasing
at an alarming rate. Globally, the number of people
impacted is expected to rise from the current 415
million to 642 million by 2040*.
And while the technology to identify life-saving
biomarkers exists, it’s not accessible. Sensing data
will change this - helping us to better predict
diseases enable prevention.

30. Jawbone Health Hub
Getting Clinical
Medical-grade health tech
Fitbit Invests in Glucose
Monitoring Tech
Sano received $6M from Fitbit Jan 2018
Glucose monitoring patch
Fitbit Partners w/ Dexcom
Moving into medical-grade glucose
monitoring, integrated into Fitbit May
2018
AliveCor Kardia Band
Integrated w/ Apple
Watch
FDA clearance for EKG
accessory Nov 2017
Much
movement
in consumer
healthcare
Large companies are
seeking to differentiate and
increase the perceived
value of commoditized
tracking devices
30

31. Number of Google Ventures digital health and healthcare deals.
Annual tech participation
in healthcare*
2012-2017 YTD (5/18/17)
Silicon Valley Giants
Move in Big
on Health
$6,249
Source: CB Insights. 2018 funding numbers and projection via data sourced from Crunchbase.
* Activity made by the 10 largest tech companies in healthcare. Not indicative of
all health tech investments. 2018 funding numbers and projection via data sourced from
Crunchbase
31
Projected full-year run rate
Source: CB Insights
36
2012 2013 2014 2015 2016 2017 2018
Deals
Disclosed Funding ($M)
$2,234$4,083$2,794$914$506$299$215
26
48
41
30
2120
1313
20 21
30
41
48
26
24
2013 2014 2015 2016 2017 2018 YTD
9 8
15 16
27
12
Projection

32. $48M funding to date
Raised $24M Series B
May 2018
Proactive health monitor for
sleeping infants; allows parents
to view their child's vital signs in
real time
Raised $1.6B to date
Raised $1.2B Series B
Nov 2017
Developing a blood test for early
cancer detection
Spun out of Google
Life Sciences
Raised $800M Jan 2017
Variety of projects, including
retinal scanning for
cardiovascular diseases and
surgical robots
Set up in partnership
with Glaxo Smith Kline
in 2016
Implantable electronics for new
treatment protocols, including
type 2 diabetes
Silicon Valley Giants
Move in Big on Health
Google and Amazon have invested in, or independently acquired, a number of companies in this space.
32

33. Distribution Deal
Nov 2017
Ran talks to distribute the
Apple Watch to Aetna’s 23M
customers
+ Glucose Sensor
Jun 2017
Partnership with Dexcom
to integrate the company’s glucose
sensor data directly into the Apple
Watch
+ Hearing Implants
Jul 2017
Partnered with Cochlear to
integrate the company’s hearing
implants with the iPhone
Silicon Valley Giants
Move in Big on Health
As has Apple, with expansion into distribution deals and partnerships.
33

34. Brain & Spine Procedures
Acquired by Zimmer BioMet €164M in 2016. Planned
launch over the course of 2018-2019.
Advanced Surgical Robotics
Collaboration between Verb and Verily, giving the two
companies an edge over the best-known surgical robot
in the market today: Intuitive's da Vinci.
Hip & Knee Replacement
Received FDA clearance in Oct 2017 for
Cementless Mako Total Knee, strengthening
the co.’s leadership position in robotic tech
Endoscopy Transformed
Raised $280M Series D in Aug 2017
Flexible, Steerable Scope
& Vision Technology
Raised $20M Series H in Jan 2017
Quite a Year for
Surgical Robotics
Surgeons will soon have
more helping mechanical
hands
34

35. Source: MedCity News
The Quest for
Diagnostics
Investment has kept pace with
advancements in diagnostics.
Funding increased 10x from 2009 to
today, and concentrated in fewer
companies - a sign the Theranos scandal
has been a wake-up call for better
technical due diligence.
35
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
# Startups
Invested
Investments in Diagnostics
Startups through the end
of H1 2017

36. Raised $50M Series A in 2017
Tests 1,000+ pathogens from a single blood
draw, helping clinicians rapidly diagnose
infectious diseases.
Raised $36M Series D in Nov 2016
Comprehensive battery of real-time diagnostic
blood tests, doable in a physician’s office in 15
minutes.
Raised $1.2B in 2017
Blood cancer test with greater than 99%
specificity. Aiming to detect cancer early,
when it can be cured.
Blood is today's "gold standard" in diagnostics and investors are continuing to
fund new startups focused on new health applications
Boom Time for Blood Money
36

37. ZiO Health, Founded 2016
Seed Stage
Personalized health care at the molecular
level, including quality of breast milk.
AptaCam, Founded 2014
Seed Stage
Rapid detection of infectious diseases,
including HPV.
HAX Startups
in This Space
BBB, Founded 2014
Raised $5.1M
Tests 50+ diagnostic conditions
in 2-60 sec with one drop of blood.
Criam, Founded 2016
Seed Stage
Portable testing device that can identify
blood type in three minutes.
37

38. Source: World Health Organization
38
Chronicillnesses
anddiseasesarea
productoflifestyle
andenvironmental
conditions
Chronic illnesses are at an all time high. From heart
disease and stroke to diabetes and hypertension,
they account for 60% of all deaths worldwide.
A product of longterm lifestyle choices and
conditions, their onset is something we can do
something about - a proactive approach to
mitigating and controlling them via healthy lifestyle
practices.

39. World diabetes cases are
expected to jump 55% by 2035
2013 2035
South and Central America59.8%
Africa109.6%
North America/Caribbean37.3%
Middle East/North Africa96.2%
Europe22.4%
Southeast Asia70.6%
Western Pacific46.0%
Source: International Diabetes Foundation Source: Yach, D. et al JAMA 2004;291:2616-2622
0
12.5
25
37.5
50
1990 2002 2020
Diabetes
Respiratory Diseases (Athsma, COPD)
Other 'Noncommunicable' Diseases
Cancer
Cardiovascular Diseases
Annual Global Mortality
Chronic Illness
Current and projected cases of diabetes by region
39

40. NoShortageofAppsin
ThisSpace
My FitnessPal, Founded 2005
Acquired by Under Armour for $475M in
2015 | Health and wellness app that tracks
food and exercise.
Most are focused on diabetes, weight loss, and exercise.
Missing are sensors and their ability to track ongoing
progress from within the body.
mySugr, Founded 2012
Acquired by Roche for €70M in 2017
Digital health company that strives
to “make diabetes suck less”
Glooko, Founded 2010
Total funding $71M. Raised $35M
in Series C June 2017 | Monitors
medications, carb intake, and integrates
data from most continuous glucose
monitors, blood glucose meters, insulin
pumps, and fitness trackers
40

41. Urine is the
New Blood
TestCard, founded 2017
Raised $200K
Postcard urinalysis test
Vivoo, founded 2017
Raised $120K
Personalized nutrition and
lifestyle advice based on
urinalysis
While blood chemistry provides insight into
health, the act of drawing blood remains invasive.
Urine, however, contains valuable data points
which can be acquired easily, cost-effectively,
and at scale.
Simplifying daily draws for data collection, it has
the potential to save trillions of dollars in
healthcare costs.
41

42. Bisu tracks your dietary health, fat metabolism
and hydration in just 2 minutes, and provides
daily feedback to help you reach your goals.
bisu.bio
Personalized Health
Analysis
start-up
42

43. World Population Growing at a
Decreasing Rate
1760 1790 1820 1850 1880 1910 1940 1970 2000 2030 2060 2090
World Population
Annual Growth Rate
World Population
11.2B
10B
9B
8B
7B
6B
5B
4B
3B
2B
1B
Fertility Control
on the Rise 2%
1.8%
1.6%
1.4%
1.2%
1%
0.8%
0.6%
0.4%
0.2%
0%
Source: UN Population Division (2015) -
Medium Variant. OurWorldinData.org.
The world population is growing, albeit
at a decreasing rate.
Higher standards of living, education
levels and liberalization are empowering
women to take control of their fertility
and this is reflected in the declining
fertility rate (down by half since 1950).
43

44. World Population
Total Fertility Rate:
Children Per Woman
1.25
2.5
3.75
5
1950 1960 1970 1980 1990 2000 2010
Fertility Control
on the Rise
Source: UN Population Division (2017 Revision)
Women want to know their body and choose
when they get pregnant.
Fertility tests, however, can be expensive and
difficult to track. And while fertility apps are
inexpensive, they’re often wildly inaccurate.
44

45. Modern Fertility
Founded 2017
Raised $7M
Makes fertility information
more accessible to women;
offers comprehensive
ovarian test
vSculpt by Joylux
Founded 2013
Raised $8.8M
($5M Series A in 2017)
Vaginal rejuvenation device -
treats tissue and pelvic floor
muscles via light energy
Celmatix
Founded 2009
Raised $59.6M
Multi-genetic test for
fertility and reproductive
health
Startups in the
Fertility Space
Prima-Temp
Founded 2010
Raised $6M
Vaginal ring measures
core body temp,
detecting ovulation
45

46. The First Fertility Tracking Kegel
Designed for women to exercise their
pelvic floor and understand their fertility.
kegg.tech
KEGG narrows the scope on accuracy.
Rather than providing qualitative
feedback based on indicators that
measure what happened the month
before, it monitors what’s happening
in the here and now.
Tracking fluctuations in body
temperature and the changes of
impedance in cervical mucus, it
predicts with greater accuracy which
days - and times of day - you can and
cannot conceive.
The Future of
Birth Control
start-up
46

47. Technologydrivesgrowthbyincreasingproductivityin
twodifferentways
changingtheprocess
throughautomation
makingprocesses
moreefficientwithdata
In 1987, Robert Solow won the Nobel Prize in
Economics. His theory, The Solow Model, reduces
economic growth to a simple equation.
This principle applies to technology and the
digitization of traditional businesses quite well.
Without getting too complicated, it boils down to
this: there are two main factors in making any
process more efficient - capital and labor.
While you can increase the quantity of those inputs
to raise output, that can only go so far. At some
point, technology will need to advance in order to
see efficiency gains.
47

48. HAX B2B
Investment Thesis
The Difference Between Industrial and Enterprise
B2B covers two key areas: Enterprise and Industrial.
Enterprise includes the development of sensing
technologies that either enable new business
models or raise efficiency / output.
Industrial investments aim at the automation of
a physical process, i.e. a service robot or
manufacturing technology.
48

49. Seven big
areas of
focus
Increasing
Productivity
Food and
water supply
Manufacturing
Energy
Mining
Construction
and Facilities
Logistics
Communication
49

50. Digitizing existing
industries via
sensing, connectivity
and innovative
hardware
50

51. Big data and machine learning
for B2B will drive 70% of IoT
value* over the next 10 years.
This will be enabled by
physical sensors.
Source: McKinsey
Driving
Efficiencyfor
Enterprises
51

52. There are two
main ways to
address the
problem:
Grow more.
Waste less.
Making Agriculture
More Efficient
In the next 20 years, our world faces a food crisis.
We expect 9.2 billion people to be on the planet by
then. In order to feed everyone, we will need to triple
our current agricultural output.
Scaling to meet this demand, however, requires
greater productivity, which to date has been driven
by the expansion of land or the use of more fertilizer
and pesticides - neither of which are sustainable
long-term.
Efficiency must be driven by precision agriculture -
helping farmers with a cost-efficient means to
analyze, predict and manage crops to maximize
productivity.
52

53. 0
1
2
3
4
1961-70 1971-80 1981-90 1991-2000 2001-13
Annual % growth in global agricultural
output, 1961-2013
Input and Prediction
Through Precision
Expansion of agricultural land
Expansion of irrigation to cropland
More inputs per area
Improvement in total factor productivity
Over the last decade, production
increases have mostly relied on
fertilizers and pesticides.
We may have reached a limit, making
now more important then ever to gain
high-precision insights into the soil and
environmental conditions.
Source: USDA, Economic Research Service, International Agricultural Productivity data product. 53

54. SoilTesting
Comesto
theFore
"Soil is the largest living
organism on earth, yet
humans know far more about
our solar system than we do
the top six inches of soil on
this planet.”
- Remi Schmaltz, CEO of
Decisive Farming
2014
$8M
Founded
Raised
2013
$10M
Founded
Raised
2014
Founded
2017
$14M
Founded
Raised
2013
$5M
Founded
Raised
Advanced prevention and
management of agricultural
diseases.
Ag-analytics company, develops
cloud based software solutions
integrated with wireless sensors,
which boosts crops yield
Continuous data monitoring and
system control. Bootstrapped to
26 countries.
Ag data software service that
optimizes pest management in
orchards and vineyards.
Provides growers with a decision
support service to increase their
yields and to optimize irrigation
54

55. Optimize
fertilizer application,
increase your yield
nordetect.com
Nordetect builds portable, lab-grade testing units that
provides farmers with a quick (and cost-effective) way
to sample, test and analyze chemical levels in the soil.
With quick feedback, farmers can measure the
chemical balance in their soil (NPK) and adjust the types
and amounts of inputs they’re using, to improve and
optimize their yield.
55

56. PreventingWasteinthe
SupplyChain
1.3bn tons wasted
could feed 37% of the world
0
75
150
225
300
Europe North America
and Oceania
Industrialized
Asia
Sub-Saharan
Africa
North Africa,
West and
Central
Asia
South and
Southeast
Asia
Latin America
Source:FoodandAgriculturalOrganization,
Percapitafoodlossesandwaste(kg/year)
Lostinsupplychain
Lostatthetable
One third of the food produced globally is wasted.
56

57. Take corn, for example. In the US, over 96
million acres of land is devoted to the crop
(larger than the size of Germany) and it’s stored
in commercial grain bins.
When moisture and mold get in, farmers run the
risk of not only losing the crop, but hundreds of
thousands of dollars in lost revenue as a result.
AmberAg addresses exactly that: small sensors
that help farmers monitor the conditions within
their stored grain environment. When moisture
is detected, it’s automatically fanned out -
protecting the crop (and revenue gains).
Reducing waste
from crop to table
57

58. Construction productivity is stagnant,
costing the world $1.6tr per year
Global productivity
real gross value added
Per hour worked
Source: The Economist
Construction has the lowest
productivity gains of any industry.
Lagging behind much of the entire global
economy average, companies are having
trouble keeping up with infrastructure
demand.
There’s only so much capital and labor
can do to increase productivity. And
with few relying on technological
advancement to boost this, the industry
is ripe for innovation.
Constructing
Efficiency
Gains
58
200
150
100
Manufacturing
1995 20142004
Total Economy Construction

59. Doxel founded 2015
Raised $4.5M
Machine vision for monitoring
construction productivity
Propeller founded 2014
Raised $14M
A visual and easy-to-use drone data
analytics platform for worksites
Katerra, founded 2015
Raised $1.1B
Optimizing the way buildings are
developed, designed, and
constructed
Companies tackling construction productivity in
unique ways
59

60. Improving
worker
productivity
andsafety
Wakecap uses sensors integrated into job sites
and personal safety equipment to create a mesh
network that enablesthegeo-positioningof
materials,equipmentandworkers - providing
visibility into worksite operations, worker safety,
and overall levels of productivity.
wakecap.com
60

61. Larger machinery and big payoffs for investment in
productivity for some. But process improvement and data-
driven decision making lags far behind for most.
Mining
for Change
Mineral Mining (excl. diamonds) is a $3.5 trillion global
industry. About 75% is fossil fuels.
Mining, as an industry, has spent one tenth the amount
of oil and gas on innovation in the last three decades.
The industry has seen a 3.5% average decline in
productivity every year since 2004 and has struggled
to attain low-unit costs and high-output per employee.
With expensive CAPEX for machinery, maximizing
efficiency per employee is a key component toward
increasing productivity.
Source: McKinsey
MineLens
productivityindex
61

62. Founded 2015. Raised $3.8M
Series A in April 2017
Plug-and-play satellite IoT for
remote fleet operation /
logistics
Founded 2014. Raised $10M
Series C in Jan 2018
Pilotless drones for mining, oil and
gas surveying
v Founded 2005. Acquired by Norbit
Oil Corp in Nov 2017
Visual detection of oil spills and
collision-bound vessels
Airobotics Aptomar Fleet Space Tech
Innovativeminingtechnology
62

63. RockMass makes mines safer and more
productive with geological data.
Their solution, Atlas, is a handheld
geotechnical mapping device that
enables miners to collect, process,
and view joint set orientations.
Omitting noisy data, it can be used
both above and below ground.
rockmasstech.com
Geotechnical
MappingSolutions
63
start-up

64. v
Thewarcontinuesforbikeshare
Source: The Economist
0
75
150
225
300
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
ShareHolders
Worldwide bike-sharing schemes per year
In the world of transportation,
there’s an all out war for ownership
of the last mile.
The growth of bike sharing, especially, has
highlighted the necessity of speed,
convenience, and affordability in the final
frontier of urban travel.
The recent surge in popularity of Bird and
Jump bikes further amplifies the importance
of speed in the mix.
Eventually, between public transport, bike-
sharing and car-sharing, the use of multi-
modal transport will grow and become more
seamless.
64

65. LimeBike,
founded2017
Raised $132M
Bluegogo,
founded2016
Acquired by Didi
Mobike,founded2014
Acquired by Meituan
Dianping $2.7B
JUMP,founded2014
Raised $11.6M - Acquired by Uber
Youon,founded2010
Raised $348M
ofo,founded2014
Raised $2.2B
OLABikes,Spun out
of Ola Cabs in India
Dec2017
Thewarcontinuesforbikeshare 65

66. pushme.bike
Two wheel e-vehicles need a
distributed system of batteries, and
the software to manage them, in
oder to maintain product-market
fit and attain operational efficiency.
That’s where pushme comes in:
a distributed battery network that
enables dock-less,
two-wheel eVehicle
sharing.
Your bike. Reinvented.
pushme clips onto any bike
in seconds, making it electric.
Users can swap batteries on the
go with pushpod battery stations,
and never run out of power again.
66
start-up

67. Energy Grid
Management
Saving & Syncing
The future of energy lies in our ability to
consume better and use less of it. It also
necessitates efficiency at scale.
Realizing these gains, however — whether
you’re a home owner, building manager, or
utility optimizer — requires the ability to
access and understand consumption data.
Even better - a solution that can not only
sense what’s happening, but autonomously
make adjustments and connect to the grid at
large.
Electricity
for residential A/C
$29bn
Savings of 1-2%
in large energy areas
is gaining favor
Source: energy.gov
67

68. Watty, founded 2013
Raised $4.8M
Real-time home energy
consumption
Sense, founded 2013
Raised $20M
Track home energy use in real
time
Tado, founded 2011
Raised $59.3M
Smart A/C & radiator
thermostats
Cielo, founded 2014
$UND Series A
Makes any A/C smart
Ecovent, founded 2012
Raised $9.8M
Smart vent & sensor
Room-by-room climate control
Breezi founded 2016 / Raised $1.5M
Monitors HVAC filters / systems
Quite a few
startups tackling
the home
energy space
68
start-up

69. Flair is a system of connected vents, sensors and
software that brings room level control to heating
and cooling systems. The system integrates with
connected thermostats for control of the
furnace, compressor and blower motors in central
systems and works directly with mini-split ductless
systems.
With Flair, consumers save energy by
deemphasizing rooms that are unoccupied while
making spaces more comfortable by dynamically
balancing airflow into rooms based on the specific
occupant(s) and sensor data from that room.
flair.co
Flair also helps bring the more than
1 billion non-internet connected air
conditioning systems around the
globe on to the internet for energy
savings, comfort enhancements and
integrations into the smart grid.ThePerfect
Temperature
inEveryRoom
Flair, Founded 2014
Total Funding $1M
start-up 69

70. Industrial Robotics
Performing dull, dirty and dangerous tasks;
miniaturization of industrial manufacturing
processes
70

71. Wazer, founded 2016
Raised $1.3M on Kickstarter
Waterjet digital cutting
Glowforge, founded 2014
Raised $70.2M
3D laser printer
Desktop Metal
founded 2015
Raised $276.8M
3D metal printing
Shaper, founded 2012
Raised $16.3M
Handheld CNC
Some
Industrial
News
Formlabs,
founded 2011
Raised $103.7M
3D printer for
creators
+
-
71
start-up

72. FabricIndustryCosts
Manufacturers
Profit
100
0
%ofRevenue
Purchases65.9%
Wages
14.7%
Other11.2%
Depreciation2.3%
Apparel brands make a lot of money but the
manufacturers do not. Currently, global
apparel manufacturing profitability is about
5% and in large part, that’s due to the
declining price of cotton.
The problem is that the apparel supply chain
is highly fragmented. Manufacturers have to
spend vast sums on purchases for fibers,
yarn, machinery, manufacturing processes
and labor which leaves very little room for
profits. Most of the value gets added on at
the distribution and retail stage.
Textile Industry Costs (2016-2017)
72

73. Founded 2013
Raised $600K on kickstarter
3D Printers for Knitwear
Kniterate
Manufacturing patent for
on-demand creation of apparel
Cutting back on waste
with bespoke manufacturing
73

74. unspun.tech
A new tech on the market is
unspun: Using 3D body
scanning, it can weave bespoke
apparel. Unspun runs retail and
distribution through its online
channels.
start-up
74
3D
Custom-Fit
Clothing

75. Robot-as-a-Service
ontheRise
Source: World Robotics 2017
Thousands
of units
Robots-as-a-service are also
filling the void of process
inefficiency by automating
existing tasks.
While their use is on the rise in
some industries, like logistics
and defense, there’s still work
to be done on broadening their
applicability into many key
verticals.
Defense Field PR Exoskeletons Medical Construction Logistics
2015 2016 2017* 2018-2020*
200
150
100
50
0
75

76. founded 2017
Seed Stage
Window cleaning
founded 2014
Seed Stage
Agile rovers for
hazardous conditions
founded 2014
Series A stage
Floor Scrubbing
founded 2017
Seed Stage
Autonomous inspection robots
using visual, chemical
or other sensors
Youibot
Avidbots
Rovenso
plecobot
HAX
Companies
inService
robotics
space
plecobot.com
rovenso.com
youibot.com
avidbots.com
76

77. Viabot Outdoor
Maintenance
viabot.com
Viabot is a great example of a
robot-as-a-service tackling more
than one task.
Their multi-functional robot
takes care of outdoor chores for
commercial properties via a
single unit that sweeps, mows
lawns and scrubs by
autonomously swapping tools —
automating physical, and time
wasting chores, and making
robots more adaptable for
businesses.
start-up 77

78. ChinaChina has had plenty of domestic
innovation in recent years, from
the automotive industry to robotics.
There is also no shortage of money -
and for good reason.
78

79. TheChinese
UnicornClub
Founded
Since2009
Value $60B
founded 2010
Smart devices
2 years
Value $20B
founded 2011
Batteries
5 years
Value $5B
founded 2014
Electric Vehicles
1 year
Value $5B
founded 2012
Consumer Robots
4 years
Value $2.6B
founded 2015
Bike Sharing
2 years
Value $3B
founded 2012
Displays
3 years
Value $3B
founded 2014
Electric Vehicles
2 years
Value $2.6B
founded 2014
Bike Sharing
3 years
Value $2B
founded 2009
Batteries & EV
7 years
Value $1.5B
founded 2012
Smart Transporters
4 years
Value $1B
founded 2014
Smart Devices/AC
2 years
Value $1B
founded 2013
Motion Sensors
3 years
Value $1.3B
founded 2013
Automotive
2 years
Value $1B
founded 2013
Automotive
5 years
Time to Unicorn Status
79
Value $5B
founded 2011
Electric Vehicles
5 years
Value $4.3B
founded 2009
Automotive
7 years

80. Nio, founded 2014
Raised $200M Pre-IPO in
Mar 2018
iDriverPlus, founded 2015
Und Series B in Apr 2018
RMB100M Series A in Jun 2017
WM Motor, founded 2015
Raised $1.9B as of Dec 2017
Pony.ai, founded 2016
$112m Series A in Jan 2018
Autonomous
Mobility
&Electric
Vehicles
80

81. Dorabot,
founded in 2014
$30M Series A+ in Feb 2018
Deploying AI and robotics in the
logistics sector
Jaka Robot,
founded in 2014
$10M Series A+ in Mar 2018
Collaborative robot developer
Suzhou RoRobot,
founded in 2017
Raised tens of millions RMB
Seed round in Dec 2017
Commercial service robots
Industrial
Robotics
Quite a bit of investment is also being
placed in robotics
81

82. 0
30
60
90
120
2015 2016 2017 2018
China USA Europe
Global VC Funding
For the first time, Chinese venture capital overtook the
US. This is not just in hardware; it’s across the realm of
technology.
Up until recently, Silicon Valley has been the center
of technology investment, but China is fast catching
up due to the amount of money pouring in to the
venture capital sector, which is driving these
numbers.
82
Total VC funding, $bn
Source: Dow Jones VentureSource quarterly report

83. USA
China
Japan
Germany
Republic of Korea
France
UK
Netherlands
Switzerland
Sweden
0 15,000 30,000 45,000 60,000
Accelerating Intellectual Property
2,965 patents4,024 patents Source: World Intellectual Property Organization 2017
China Rising as
an Innovator +0.1%
+13.4%
+6.6%
+3.7%
+1.3%
-2.4%
+1.2%
-5.2%
+2.8%
+7.0%
Number of PCT Applications Published
A better proxy for assessing the
innovation landscape is looking the
number of patents published.
China increased its number of filings
by 13% last year, which means it’s
closing in on the US.
Huawei and ZTE were the top two
publishers of 2017, which is massive
resolve for Chinese enterprise.
83

84. Howdidwedo?
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