The success of any sector in tech does not always follow the hype. Take artificial intelligence (AI) , sure, it dominates headlines, it’s innovative, and it’s promising. But as a seasoned entrepreneur who has tracked growth trends across industries for over 20 years, I’ve observed that growth often favors sectors grounded in consistent, long-term demand over mere buzz.
Today, I'd like to shine a light on an unexpected, yet unstoppable force in the investment landscape: the industrials sector. That's right , while AI is basking in the spotlight, industrials have been quietly outperforming many other tech sectors, boasting five consecutive quarters of deal growth and a monumental 52% increase in funding just this year. This growth isn’t fueled by media hype but by rock-solid market trends, driven by secular demands like sustainability solutions, logistics optimization, and manufacturing innovation.
The Rise of Industrials: What’s Behind The Momentum?
Historically, industrials have been seen as cyclical , rising and falling with economic booms and busts. However, several investors I’ve worked with have pointed out that industrials are now evolving into a sector increasingly defined by consistent, sustainable long-term earnings. Here's why:
1. Secular Growth Trends:
Trends such as:
- Green tech solutions: Industrial companies focused on decarbonization and energy-efficient manufacturing are riding the wave of government climate initiatives and consumer demand for sustainability.
- Automation technology: The shift toward Industry 4.0 (smart factories, robotics, IoT integration) is driving a steady stream of funding as companies seek greater efficiency.
- Global supply chain optimization: The chaos of recent years has forced industries to embrace logistics-enhancing technologies in delivery, storage, and inventory management.
2. Consistent Demand:
Unlike AI startups that often face volatility and early-stage failures, industrial solutions address tangible market needs. For instance:
- More governments are allocating budgets for infrastructure updates.
- Corporate demand for operational efficiency is fueling investments in areas like robotics and machine learning applications in manufacturing.
3. Momentum in Private Equity and Venture Capital:
Investors are redirecting attention to sectors showing resilience during economic headwinds. As someone who has raised funds for cutting-edge projects, I can confirm this shift first-hand. Industrial tech companies promise the kind of stable returns investors crave amid tighter market conditions.
Statistics to Watch
According to recent reports and trend analysis:
- Industrial Deal Growth: The sector has posted 5 consecutive quarters of deal volume increases, marking a period of record growth.
- Funding Surge: Industrial technologies have seen funding increase by 52% year over year, indicating rising investor confidence.
- Global Opportunities: Europe and Asia have particularly stood out as key hubs, with manufacturing-focused innovation centers playing host to major investment rounds.
Lessons I’ve Learned as an Entrepreneur
As the CEO of CADChain and founder of multiple projects, I’ve seen firsthand how tapping into emerging trends can lead to exponential growth. The sudden realization of “there’s gold in overlooked sectors” often comes too late for businesses that don’t diversify. Based on my experience, here’s how you can leverage this industrial boom:
How To Position Yourself in Emerging Industrial Tech:
-
Spot the Underserved Niches:
Focus on products or services that help industries tackle inefficiencies , think predictive maintenance for machinery or blockchain solutions for supply chain transparency. -
Always Prioritize Market Validation:
Industrials won’t bet on unproven concepts. Test your product with multiple corporations before scaling. -
Master Cross-Sector Collaboration (Industrials + Tech):
Combine technologies like AI or blockchain with core industrial products. For example, my background in intellectual property and AI has enabled me to integrate advanced tools into traditionally rigid CAD sectors.
Common Mistakes to Avoid
While industrial tech offers immense opportunity, I’ve seen entrepreneurs trip up on pitfalls, particularly:
- Underestimating Complexity: Unlike consumer apps, industrial tech must meet rigorous standards and compliance regulations. If you don’t have the patience to build a top-tier solution, rethink your approach.
- Ignoring Sustainability: Industrial buyers care deeply about ESG (environmental, social, governance). If your solution doesn’t address these points, your pitch may face rejection.
- Over-reliance on Buzzwords: While tech markets might lean on fancy terms like “AI-powered,” industrial buyers want practical results, not buzzword-heavy pitches.
Why This Is Your Opportunity Too
While industries like AI or fintech may seem dazzling at first glance, the returns in the industrial sector are proving just as , if not more , lucrative, especially when factoring in stability. In fact, industrial startups are often a safer bet for founders who want consistent market demand and clear paths to revenue.
Industrials don’t just fill a need, they solve massive, longstanding problems for the world’s infrastructure. From high-speed rail technologies to modular manufacturing techniques, entrepreneurs can carve out niches that offer both sustainability and profitability.
My Takeaway
From my perspective, the rise of industrial tech serves as a reminder not to blindly follow trends. Industries that innovate quietly, solving real-world issues, often outperform their headline-grabbing competitors over the long term.
As a founder, you need to be proactive in spotting where the real growth is happening. This shift in the industrial sector is your chance to step away from the AI bubble and focus on impactful, scalable business models.
Want to learn how to align your business strategy with emerging sectors?
Start with one of my favorite actionable tools , the Female Switch Business Model Canvas Generator. It’s perfect for founders exploring new niches and allows you to visualize your market positioning effectively.
FAQ
1. What sector is experiencing remarkable deal growth and funding increases in 2025?
The industrial sector has achieved five consecutive quarters of deal growth and a 52% increase in funding this year, driven by secular demands like sustainability, automation, and supply chain optimization. Learn more about the rise of Industrials
2. Why is AI not leading in deal growth despite the hype?
While AI dominates the headlines, its startups face volatility and early-stage failures. The industrial sector stands out with consistent, sustainable long-term earnings growth. Learn more about industry insights
3. What trends are driving growth in the industrial sector?
Key trends include green tech solutions, automation technologies, and global supply chain optimization, all addressing critical infrastructure challenges. Explore industrial growth trends
4. How has funding in the industrial sector grown year over year?
The industrial technologies have seen a 52% funding boost year over year, reflecting rising investor confidence in stable, longstanding solutions. Discover funding statistics
5. What factors make industrial solutions attractive to governments and corporations?
Industrials address tangible market needs, such as infrastructure updates, operational efficiency, and sustainability compliance, ensuring ongoing demand across sectors. Learn more about market demands
6. How do private equity and venture capital view the industrial sector?
Investors see resilience and stability in the industrial tech landscape, favoring sectors capable of weathering economic headwinds over volatile tech segments. Check out PE insights
7. Which regions are prominent in industrial sector growth?
Europe and Asia have emerged as key hubs for manufacturing-focused innovation, hosting major investment rounds in industrial technologies. Explore global opportunities
8. What mistakes should entrepreneurs avoid when entering industrial tech?
Avoid underestimating complexity, neglecting sustainability elements, and relying on buzzwords, industrials demand rigorous standards and practical solutions. Learn more about startup pitfalls
9. How can founders position themselves in the rising industrial sector?
Focus on underserved niches like predictive maintenance and supply chain transparency while integrating advanced tools like AI into traditional industries.
10. Why is industrial technology seen as a safer bet than AI?
Industrials offer long-term demand and scalable business models, solving real-world issues without depending heavily on hype or speculative growth trends. Learn more about industrial opportunities
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.