The venture capital arm of German engineering and electronics giant Siemens has launched a $100 million fund to invest in what the company describes as very young and dynamic startups focused on industrial automation.
The end goal is to help early-stage startups that have developed pioneering technologies that will either transform industrial markets or create entirely new ones, according to Siemens. The so-called "Industry of the Future Fund" will complement an existing fund aimed at more mature startups.
Siemens has used the fund to invest in Lagoa, a Montreal-based startup that provides cloud-based, high performance 3D visualization software, and CounterTack, a Boston company that is developing next generation cyber security software.
Siemens, like GE, are putting more capital towards the integration of machinery with connected sensors and software.
Last year, GE invested $1 billion into the development of applications that it calls the "Industrial Internet." GE views the Industrial Internet as an opportunity to increase both productivity and revenue. A GE report released in November 2012 found all of the major industries, such as aviation, power, rail, healthcare and oil & gas, can save more than $270 billion over the next 15 years by improving their efficiency by one percent.
Thumbnail photo: Siemens