Explore the 2020 Industrial Technology Sector

White Star Capital
Sector Overview:
Industrial Technology
From the eyes of an
international investor
H2 2020

White Star Capital
The Industrial AI revolution
2
Source: RBC Capital Markets
Since its founding, White Star Capital has been investing in entrepreneurs
leveraging emerging technologies to improve how products are developed, made
and delivered throughout North America, Europe and Southeast Asia. Through our
investments in KeyMe and Mnubo, we invested in a future that fuses the
physical and digital industrial worlds. Our investments in Vention and Packhelp
highlight our strong belief that the next wave of industrial automation will come
from digital platforms that enable mass customization.
We believe that the digitalization of industry has reached its inflection point. Smart
factories, advanced automation, and intelligent supply chains – powered by artificial
intelligence and machine learning capabilities – enable new product development,
create value added services for the end customer, and monitor/improve
equipment performance.
More commonly referred to as the Fourth Industrial Revolution, or Industry 4.0, we
believe that Industrial Automation will affect the global supply chain in three
immediate ways:
1) Demand-Driven Production – The implementation of an intelligence layer
allows businesses to predict and automate their supply chain based on both
macro (market) and micro (consumer) conditions.
2) Smarter Robots and Adaptive Manufacturing – Most industrial robots today
are designed for simple, repetitive tasks like lifting, drilling, assembling, etc. The
next generation of robots will be General Process robots, flexible in their use
cases and adaptable to changing environments, constraints and sectors.
3) Automated Quality Control and Predictive Maintenance – The introduction of
sensors, smart instrumentation, and data analytics enables enterprises to create
digital copies of a machine or production process. These models are being used
to monitor and adjust different nodes of the system in real-time.
Big Data Artificial Intelligence
Design Tools Digital Twin
Middleware Edge Computing
Computer
Vision &
Inspection
Augmented
Reality
Industrial
IoT
Robotics 3D Printing
Machine-
enabled
worker
Intelligence
Design
Orchestration
Interface
Production
Virtual
Physical
Layer Key Technologies

White Star CapitalWhite Star Capital
Contents
3
Section 1 Industrial Technology Ecosystem:
An Overview Pg. 3
Section 2 Sector Focus Pg. 15
B2B Marketplaces Pg. 16
Supply Chain Automation Pg. 20
Mass Customization Pg. 24
Robotics and Automation Pg. 28
Section 3 Geographic Focus Pg. 32
North America Pg. 33
Europe Pg. 34
Asia Pg. 35
Section 4 Partnering with White Star Pg. 36
Capital

Industrial Technology
Ecosystem:
An Overview
1

2019/2020 News Highlights
5
Source: Pitchbook
1. Rounds >$100m.
Industrial Technology:
An Overview
$28.9bn
Of VC capital invested into
Industrial Technology globally in
H1 2020
$160bn+
Industrial Technology funding
over the last 3 years
24%
Share of VC funding over the
last 3 years globally
29
VC-backed Industrial Technology
unicorns
12%
Share of seed funding invested
in Industrial Technology over
the last 3 years globally
76
Industrial Technology IPOs over
the last 10 years
34
Mega rounds in H1 20201
75%
Share of US companies
affected by global supply chain
shocks due to COVID-19

• Digital technologies are changing how products are designed, engineered,
prototyped, manufactured, distributed, and maintained.
• A key driver of “smarter” manufacturing has been the drastic cost-reduction of
necessary devices. For example: average cost-per-unit for industrial robotics, IoT
and 3D printing decreased ~80% between 2007 and 20141.
• Smart manufacturing increases production flexibility to allow manufacturers to offer on-
demand, low-volume, customized products and personalized fulfilment.
• 75% of manufacturers have fewer than 20 employees, and many small and mid-size
manufacturers are now automating industrial processes and supply chains to
respond to the demand for customized products.
• Robotics, Intelligent, and AI process automation spending is expected to eclipse
$16bn in 2020.
• In 2019, funding in the Industrial Technology space was mostly concentrated in the
USA and Asia, accounting for over $50bn in total funding. However, Southeast Asia,
Europe, and Canada experienced the largest increases in deal share past Seed stage
in 2019, indicating those markets are maturing and represent significant investment
opportunities.
6
Automation Spending (2016-2023)
Sources: (1) GP Bullhound – Smart Manufacturing; The Rise of the Machines
Industrial Technology – Our View
An Overview
We define Industrial Technology as the digitization and automation of
industry – the technology that enables the designing, sourcing,
manufacturing, warehousing, fulfilment, and shipping of products to
automate the end-to-end global supply chain.
$5.8bn
$7.8bn
$10.6bn
$13.6bn
$16.7bn
$20.3bn
$26.1bn
$34.2bn
2016 2017 2018 2019 2020 2021 2022 2023
Robotic Process Automation Intelligent Process Automation AI Business Operations
2020E 2021E 2022E 2023E2019A2018A2017A2016A

Spotlight on the industrial value chain
7
An Overview
Inbound logistics
Components
manufacturing
Final production Warehousing
Outbound
logistics
Material flow that imply business between the company and a 3rd party
Internal material flow
Process executed by a 3rd party
Process executed by the company
Material
suppliers
(primary sector)
Freight & cargo 3rd party
manufacturers,
custom
manufacturing
3rd party
warehousing
Freight & cargo
Material & equipment
sourcing
• At White Star Capital, we are particularly interested in businesses democratizing
industrial automation in a world where custom products and personalized fulfilment are
becoming the standard, as product lifecycles shorten and consumer demands become
more unique.
• Another area that we are interested in is the consumerization of the industrial supply
chain through B2B marketplaces: we look for platforms that allow for higher pricing
transparency, product visibility, and omni-channel relationships between buyers and
sellers.
• Finally, we believe that distributed logistics networks place the product closer to
the customer, enabling faster shipping and response times to real-time customer
demands.
• While still 3-5 years away, we look forward to a future that leverages technological
breakthroughs in 3-D robotic vision systems and fully functional 5G
communications networks to enable real-time latency for more dynamic outdoor
applications.
We seek founders that serve or augment critical steps along the industrial value chain:
Offers 3D MachineBuilder™: a
platform to design, order and
assemble custom industrial
equipment directly from a web
browser. 1st and only software
and hardware platform certified
by Universal Robotics.
Features an IoT analytics
platform to reduce machine
downtime, prevent equipment
failures, optimize asset
utilization, and extend
equipment life.
Provides online platform for
packaging design; for consumers,
allowing basic design choices,
and for enterprises enabling the
engineering of the entire
packaging process– materials,
dimensions, vendors and more.

White Star Capital 8
An Overview
Technical Factors to Rise
• Rapid decrease in the cost of sensing,
computing, and standardized operating
systems capabilities.
• Sharp improvement in functionality,
accuracy, flexibility, and reliability of
robotics and automation technologies.
• Commercially viable capture of big data
to enable advanced intelligence using
machine learning, deep learning, and
predictive analytics.
Macroeconomic Factors
• Covid-19 highlights massive disruption of
labor shocks.
• Increase in e-commerce and e-retailing.
• Premium assigned to shorter delivery
times.
• Localization of distribution logistics.
• Increased seasonal demand variability,
including consumer demand for
personalization
Next Technological Breakthroughs
• New vision guided robots (VGRs) that are
highly adaptable to dynamic operating
environments.
• 3-D vision hardware combined with
sophisticated software to process large
quantities of visual data in real time.
• Fully functional 5G wireless with nominal
latency, real-time speed, and faster
transmission rates will link robots together to
enable dynamic, integrated performance in
unstructured environments (outdoors).
Source: William blair, Pitchbook
1. Faster time to market
Automation companies are working
with customers to design and deploy
their own solutions.
2. Lower cost of ownership
Dramatic decline in the cost of critical
sensors and emergence of standard
operating software makes industrial
automation economically compelling.
3. Improved asset utilization
Increased global competition forces
manufacturers to optimize asset
utilization by minimizing downtime and
maximizing throughput.
4. Enterprise risk management
Increase in spotlight on regulatory and
environmental compliance requires
digitized processes.
Rapid growth
Moderate growth
Accelerating
deployment of
robots, growth
in cybersecurity,
and deployment
of VR
5%-20%
For traditional
industrial
factory
automation
markets
End-market
growth of
general process
automated
solutions
10%-60%
For derivative
robotics and
industrial
automation
solutions
Recent technical and macroeconomic factors have
contributed to an increase in Industrial Automation
Factors Accelerating Growth

White Star Capital
• Global manufacturing and supply chains will feel the effects of the Covid-19 pandemic for
months or years into the future accelerating the adoption of Industry 4.0 initiatives.
• Covid-19 demonstrates that manufacturers need to focus on digitization and automation
of their supply chains, enabling agility to quickly respond to supply shocks.
• Supply chain impact of Covid-19 will spur manufacturers spend on enterprise resource
planning tools to reach $14bn by 2024.
• Robotics and automation technologies were gradually entering the market prior to the
pandemic, but social-distancing measures will expedite adoption across more industries.
• Supply chain shocks are encouraging enterprises to respond reactively to consumer
demand through short-run production lines or multi-point suppliers.
• CBRE reported an increase in the popularity of on-demand, flexible warehousing and
sees an opportunity for on-demand warehousing to disrupt third-party logistics players.
White Star Capital’s outlook on a post-Covid Industrial future
• Inventory and demand forecasting solutions give managers visibility and flexibility to
respond to uncertain customer demand for future macroeconomic shocks.
• Automation and robotics technologies enable cost savings and continuity of operations
during labor shocks.
• On-demand warehousing provides enterprises with flexibility in multiple markets to run
batch production and partner with multi-point suppliers in case a specific region is shutdown.
“Supply chain orchestration requires software to be more than a system of record and provide risk
analysis and run simulations, enabling manufacturers to understand and prepare for supply chain
shocks.” – Michael Larner, Principal Analyst at ABI Research.
How we see the Industrial Technology sector evolving over the next few years…
9
“The situation is likely to spark calls for more industrial automation to keep
workers safe from catching Covid-19. Robots are best suited for tasks that are
dull, dirty and dangerous — known in the industry as ‘the three Ds.’ Perhaps
‘disease prevention’ is a fourth D.” - Bill Studebaker, President of Robo Global
COVID-19 Impact on Industrial Technology
The Coronavirus pandemic is forcing manufacturers to digitize and
automate their supply chains to respond to economic shocks.
An Overview

Industrial Technology has grown c.21% yearly since
2011 as manufacturers and distributors aim to automate
the end-to-end supply chain
10
Source: Pitchbook
North America and Asia have led the World from a deal value perspective, with
mega-rounds from start-ups like Flexport, Convoy, Manbang Group, and Geek+
driving activity
On the other hand, North America, driven largely by the US, consistently leads by
deal number
Deal Value
Deal Volume
$0.8bn $0.8bn $0.8bn
$1.3bn
$2.0bn $2.4bn
$2.0bn
$3.3bn
$3.9bn
$1.0bn
$0.6bn
$0.5bn
$0.6bn
$0.6bn
$0.8bn
$0.3bn
$1.3bn
$1.5bn $2.5bn
$4.6bn $3.1bn
$1.1bn$1.2bn $1.3bn $1.2bn
$2.0bn
$3.9bn
$4.5bn
$5.1bn
$8.5bn
$7.7bn
$2.4bn
2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
North America Europe Asia
An Overview
1,345
1,696
2,048
2,611 2,911 2,674 2,645 2,346
2,013
703
742
832
1,068
1,445
1,771
1,780 1,743
1,531
1,184
338
318
521
963
1,065 1,146
1,300
1,184
331
2,284
2,761
3,434
4,577
5,645 5,519 5,534
5,177
4,381
1,372
2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
North America Europe Asia

White Star Capital
+[xx]%
Growth in share of
deals from 17-19
The global Industrial Technology ecosystem is maturing
past seed, with funding shifting towards later-stage,
high-quality deals
11
The most mature of these regions include USA, China, Southeast Asia,
and France, which are pushing into the the Series C and D stages
USA China SEA France UK Scand. Canada Germany
Seed
share of
deals
39% 15% 36% 20% 53% 62% 44% 32%
(5.9)% (18.0% (18.7)% (32.0)% (3.0)% (12.7)% (15.5)% (21.6)%
Series A
share of
deals
27% 44% 32% 35% 36% 29% 22% 41%
1.8% (1.7)% 26.1% (10.0)% 11.6% 113.8% 6.3% 19.3%
Series B
share of
deals
16% 24% 18% 25% 4% 0% 25% 21%
6.9% 3.9% (4.7)% 52.1% (17.0)% (100.0)% 39.2% 39.9%
Series C
share of
deals
8% 14% 5% 20% 4% 10% 0% 3%
6.0% 40.5% (4.7)% 172.0% 17.0% NA (100.0%) (25.2)%
Series D
share of
deals
5% 3% 9% 0% 2% 0% 3% 0%
20.7% (2.8)% NA NA NA NA (1.6)% NA
Series
E+ share
of deals
0% 0% 0% 0% 0% 0% 0% 0%
NA NA NA NA (100.0%) NA NA (100.0)%
Source: Pitchbook
Share of deal volume by deal stage type (2019)
An Overview

White Star Capital
Deal sizes are consistently growing in the most mature
regions, with the UK and Germany catching up with
significant growth at Series B
12
Source: Pitchbook
Median deal size 17-19 CAGR
$[xx] Median deal size (2019)
19.9%
15.5%
15.5%
Seed
Series A
Series B
USA
$2.5m
$10.0m
$20.0m
0.3%
25.8%
(13.4)%
Seed
Series A
Series B
China
$1.5m
$14.2m
$15.0m
24.5%
14.5%
93.9%
Seed
Series A
Series B
UK
$1.1m
$6.6m
$48.7m
45.3%
(22.4)%
50.1%
Seed
Series A
Series B
Germany
$2.3m
$6.4m
$19.1m
67.0%
13.3%
(12.6)%
Seed
Series A
Series B
Canada
14.4%
(35.5)%
(40.6)%
Seed
Series A
Series B
SEA
$1.2m
$5.0m
$8.4m
(13.1)%
42.8%
6.8%
Seed
Series A
Series B
France
$1.3m
$10.3m
$14.3m
(3.4)%
109.7%
(100.0)%
Seed
Series A
Series B
Scandinavia
$1.1m
$6.3m
N/A
$4.0m
$5.7m
$28.0m
An Overview

$7.5m $4.5m $4.0m
$25.0m $65.0m
$14.8m
$70.0m $130.0m $67.3m
Deal valuations are generally increasing across all
stages, with Asian valuations being driven by outsized
mega-rounds
13
Source: Pitchbook
Note: Please note Pitchbook valuation data has limitations and only considers rounds that have officially announced valuations. For this reason,
Africa and South America have been excluded.
European valuations lag behind Asian valuations by c.75% and 50% at
Series A and B, respectively
With massive markets to capture, investors are placing big bets on late-
stage winners, especially in the USA and China
Seed
Series A
Series B
North America Asia Europe
FreightHub
Series B: $30m (2019)
UK
Sennder
Series C: $70m (2019)
UK
Zencargo
Series A: $22m (2019)
UK
Fretlink
Series B: $28m (2019)
France
Convoy
Series D: $400m (2019)
USA
Vention
Series A: $13m (2019)
Canada
UiPath
Series D: $568m (2019)
Romania
Flexport
Series D: $1bn (2019)
USA
Ninja Van
Series D: $124m (2020)
Singapore
GreyOrange
Series C: $140m (2018)
Signapore
LalaMove
Series D: $300m (2019)
Hong Kong
Median pre-money valuation
Selected outsized funding rounds
+11.0% +14.7% +27.7%
+19.0% +16.6% 17.6%
+15.3% +6.6% 11.6%
+[xx]%
Growth in
valuations
from 14-19
Joled
Growth: $230m (2019)
Japan
An Overview

White Star Capital
USA and Asia leading the mega-rounds charge as late-
stage investors look to capture value from the world’s
largest manufacturing and shipping markets
14
Source: Pitchbook
Europe and South America still more nascent in their ecosystem
maturity, but are coming along with as Industry 4.0 initiatives take hold
North America
Asia (excl.
China)
Europe South America
2019
2017
2016
2018
2020
$56m
Series C (Sep-19)
Switzerland
$70m
Series C (Jul-19)
Germany
$230m
Growth (Apr-19)
Japan
$300m
Series D (Feb-19)
Hong Kong
$50m
Series A (Mar-18)
France
$568m
Series D (Apr-18)
Romania
$300m
Series F (Sep-19)
USA
$186m
Series B (May-19)
USA
$100m
Series F (Jan-18)
USA
$140m
Series C (Sep-18)
Singapore
$117m
Series D (Nov-17)
USA
$150m
Series D (Apr-20)
Taiwan
$1bn
Series D (Apr-19)
USA
$263m
Series B-2 (Jan-20)
USA
Mega rounds by region
$239m
Series C (Sep-19)
UK
$100m
Series B (Jun-19)
UK
$50m
Series A (Jan-20)
USAA
$940m
Series B (Feb-19)
USA
$400m
Series D (Nov-19)
USA
$110m
Series B (Oct-19)
USA
$290m
Series B (Nov-19)
USA
$200m
Series D (Feb-18)
USA
$185m
Series C (Sep-18)
USA
$114m
Series C (Jul-17)
USA
$110m
Series C (Apr-17)
USAA
$78m
Series D (Mar-17)
USA
$181m
Series C (Sep-16)
USA
$70m
Series D (Oct-16)
USA
$124m
Series D (Apr-20)
Singapore
$60m
Series D (Jun-19)
Singapore
$150m
Growth (Jun-19)
Brazil
$111m
Growth (Oct-19)
Brazil
$60m
Growth (Aug-19)
Brazil
$95m
Series A (Feb-18)
Japan
$113m
Series E (Jun-20)
Brazil
$225m
Series C (Nov-18)
Romania

White Star Capital
$17.4 bn
Capital Raised by Industrial
Technology Unicorns
52%
Of Industrial Technology
Unicorns come from North
America
Sources: Pitchbook
1. Please note Pitchbook valuation data has limitations and only considers rounds that have officially announced valuation. For
companies estimated by Pitchbook to be valued > $1b, but without reported valuation, value represents total financing raised.
North America 15
$2.7b
$3.3b
$2.4b
$1.8b
$1.5b
$1.2b
$1.0b
$1.0b
$1.0b
$2.8b
$7.1b
$6.3b
$1.0b
Asia 11
$2.0b
$1.4b
$1.5b
$6.5b
$6.5b
Europe 2
$1.2b
15
$1.3b1
$296m1
$230m1
$950m1
$1.0b
$994m1
$562m1
$319m1
$520m1
$6.8b
An Overview
29 Industrial Technology Unicorns, concentrated in
North America and Asia
South America 1

Strategic M&A accounts for over 75% of exits in
North America and Europe, IPOs drive Asian exits
16
Source: Pitchbook
North American and European markets trend towards consolidation,
while public markets dominate Asian exits
Exits by type
Selected VC-backed exits
$6.8bn
Acq. by Amcor (Jun-19)
USA
$5.75bn
Acq. By Johnson and Johnson
(Feb-19)
USA
$1.06bn
Acq. By HNA Group (Oct-17)
Singapore
$1.06bn
Acq. By Mitsubishi Heavy Industr.
(Mar-17)
Japan
$855m
Acq. By AMS (Jan-17)
Singapore
$500m
Acq. By GE (Dec-16)
Sweden
$450m
Acq. By Shopify (Oct-19)
USA
$400m
Acq. By The Jordan Group (Jul-18)
USA
$300m
Acq. By Boeing (Dec-16)
USA
$300m
Acq. By HSB (Oct-18)
USA
$195m
Acq. By Cognex (Oct-19)
South Korea
$89m
IPO (Dec-18)
Japan
$87m
Acq by Aspen Technologies (Jul-19)
Canada
$305m
Acq. By Deere and Co. (Sep-17)
USA
$218m
Acq. By Stamps.com (Aug-18)
UK
An Overview
9
5
9
6
4
14
24
24
31
4
106
120
113
86
40
2016
2017
2018
2019
2020 H1
NorthAmerica
30
27
19
21
29
3
3
3
22
22
19
9
8
2016
2017
2018
2019
2020 H1
Asia
13
17
5
2
16
16
21
14
10
88
91
70
65
31
2016
2017
2018
2019
2020 H1
Europe
1 1
2
3
2
1
2
2016
2017
2018
2019
2020 H1
SouthAmerica&Africa

Sector Focus
2

White Star Capital
The White Star Capital perspective on Industrial
Technology segmentation
18
Sector Focus
At White Star Capital, we approach Industrial Technology through
understanding the primary dimensions that compose it.
Technology Dimension
The frontier software and hardware enabling digital
and automated industrial processes.
• ERP systems
• SCADA and control
systems
• Wireless field networks
• Robots and automatic
actuators
• Measuring equipment
and sensors
Applications Dimension
Applying automated processes to production,
logistics and retail.
• Digital platforms
• Retail space automation
• Logistics automation
• Straight through
processing
• Full factory automation
Value Chain Dimension
Improving and better connecting discrete steps
along the industrial value chain.
• End user
• Solution aggregator
• Intermediary User
• Equipment Supplier
• Component Supplier
• Trucking, shipping and
forwarding
Robotics
Supply Chain Automation
Mass Customization
B2B Marketplaces

B2B Logistics
Marketplaces

White Star Capital
B2B Logistics Marketplaces – The
Consumerization of Industry
20
Sector Focus:
B2B Marketplaces
Managed B2B Logistics Marketplaces are translating best practices from
the B2C model to digitalize offline interactions.
B2B Logistics Marketplaces
High margins
(20%+ take
rates)
High
transaction
Frequency &
Avg. Order
value
Clear barriers
to entry &
Network
Externalities
High value
Added in
transaction
transparency
B2B Logistics Marketplaces primarily rely on 3 criteria to be successful:
Approach
• Transaction money kept
on platform
• Ability to increase take
rate over
• Actively “managed”
logistics marketplace to
avoid disintermediation
and improve customer
loyalty
• Supplier-first mentality
• Large, fragmented global
market size
• Potential to expand the
market through increasing
its efficiency: reduce
friction, drive overall more
players and transactions
to market
• Repeatable playbook for
connected international
markets
Market Dynamics
• Frequent transactions and
high AOV
• High fragmentation of
buyers and sellers,
reducing user bargaining
power
• Non-monogamous
relationship between
buyers and sellers
Growth Prospects
B2B Successes

B2B Marketplaces – The Consumerization of
Industry
21
Sector Focus:
B2B Marketplaces
Among many use cases, three key industrial pain points being addressed by B2B
marketplaces today include:
B2B Marketplaces are now streamlining the industrial world, improving
inefficient and offline interactions between companies along all parts of
the value chain.
The Industrial sector accounts for ~22% of the world’s GDP, but only the largest players
can operate at efficient productivity levels. The inability to manage multiple relationships in
different locations leads to long term, cost inefficient buyer-supplier contracts, but conflicts
of interest prevent incumbents from solving poor information flow within the value chain.
Successful B2B Marketplaces increase industry trust, modernizing processes that were
untouched for decades.
Within a B2B marketplace strategy, manufacturers and wholesalers can complement their
inhouse products with curated services from their partner ecosystem, such as installation
and training– a mentality becoming increasingly popular as younger, more digitally-
driven purchasing managers push for more ways to buy business products and
services online.
In spite of the industrial world’s historically slow rate of change, burgeoning demand for
industrial B2B marketplaces is forcing some of the biggest incumbents to evolve their
strategies. Vertical leaders who have established their own marketplaces include Thales,
Honeywell and Toyota; according to Gartner, 15% of digital commerce organizations
with medium to high GMV will have deployed their own marketplaces by 2023.
• Pressure to lower inventory levels has stressed inbound & outbound
logistics, while the outsourcing industry has multiplied inventory volume.
Material Management
RFP-based contracting
• The persistence of non-binding agreements as a standard, specially in the
logistics space, forces companies to overbook capacity and bear higher
costs.
Client-supplier management
• As long-term contract relationships become not competitive enough, the
industry shift to a spot contract strategy that not all players are ready to
handle.
Source: Gartner – New Deployment Models, Channels and Technologies Spark Digital Commerce Growth

White Star Capital
Key Sub-Sectors
B2B Marketplaces are revolutionizing the freight shipping space in 4 key
sub-sectors.
Digital Freight Forwarders
Global Shipping Brokers
Trucking Marketplaces
The freight forwarding space is going digital, with early marketplaces aggregating online
offer.
• Surge of digital freight forwarders
with punctual offline operations
• Replacing incumbent forwarders
with a high-tech offering.
• Supported by digital brokers, shippers
can start to insource operations.
• Ground-only digital freight
forwarders handle trucking
logistics digitally.
• Space for several winners
As digital FF stay geographically fragmented, shippers need aggregators to handle
global supply chains.
The trucking market is one of the hottest B2B marketplace spaces due to its unique features.
• Huge market ($700b) with
worldwide steady growth above
inflation
• Extremely fragmented market,
20% of US market owned by 5
companies
• Operations heavily reliant on
manual operations and
negotiations
• Underutilized – 25% of US
Trucking capacity (headhaul
and backhaul) unused
22
Freight-Contract Handlers
The Industry relies on non-binding contracts to operate, as it cannot forecast logistics
efficiently.
• Connect shippers with freight
forwarders (digital or traditional)
• Connect shippers with best
combination of international
carriers to fit their needs
• Marketplace features can be
easily integrated in TMS
solutions
• Transaction multiples of
global brokers with integrated
SaaS TMS solutions 10-15x
• Lack of visibility and trust on
carrier’s operations
• Poor/no forecasting on future
shipping needs by shippers
• Non enforceable payment
schedules and milestones
• Shippers overbook capacity
by 25%, and schedule 15%
extra time
Sector Focus:
B2B Marketplaces

White Star Capital
Key Trends and Challenges
Challenges
23
The rise of developing economies
has strengthened the importance of
an overseas presence but
accessing the market tail is not cost
effective.
Market Access
Pressure to lower inventory level
has stressed inbound & outbound
logistics while the intense
outsourcing industry shift has
multiplied its volume.
Inventory Management
The implementation of Industry 4.0
is unequal across tangential
sectors, resulting in competitive
gaps that industrial marketplaces
can help address.
Industry 4.0 Adoption
The persistence of non-binding
agreements as a standard,
specially in the logistics space,
force companies to overbook
capacity and bear higher costs.
RFP-Based Contracting
As long-term contract relationships
become not competitive enough,
the industry shifts to a spot contract
strategy that not all players are
ready to handle.
Client/Supplier Management
As enterprises become more and
more interconnected, marketplaces
provide an opportunity to leverage
multiple channels to optimize
transparency and efficiency.
Omni-Channel Strategy
Achieving strong network effects
and reaching profitability requires
firms to grow significantly larger in
both geographic scale and breadth
of offerings.
Capitally Intensive
Large stakes at play require
relationships to be built over long
periods of time, and industry is not
well-suited to pilots or tests.
Long Sales Cycles
Old industry with entrenched
leaders who have done things a
certain way for decades. Difficult to
convince decision-makers that a
change is necessary.
Legacy Mentality
Data standards in shipping and
logistics are non-existent, making it
difficult to get multiple stakeholders
like warehouses, shippers, agents,
customs, and shipping line on the
same page.
Technical Integration
Incumbent carriers have resources
to aggressively compete with
smaller rivals. Many large shippers
are making transition to digital and
developing in-house TMS
capabilities to receive and route
freight orders.
Established competition
In order to attract shippers to their
platforms, VC-backed marketplaces
need to undercut market prices.
Although effective in near-term, this
is a potentially unsustainable long-
term strategy.
Unsustainable growth
Sector Focus:
B2B Marketplaces
Trends

Supply Chain
Automation

Supply chain automation gives retailers, suppliers,
and shippers visibility and flexibility
25
Source: Pitchbook
Today’s global supply chain is highly fragmented and includes an
ecosystem of disparate providers
The global supply chain is fragmented into a multitude of stakeholders that has traditionally
been linear in nature, traveling across suppliers, manufacturers, distributors, carriers, and
service providers. Along the way, economics shocks, supply disruptions, unpredictable
consumer demand, or international regulations can act as bottlenecks in getting a product
from Point A to Point B and disrupt the entire chain.
The Covid-19 pandemic has shone a light on how fragile the supply chain can be, and
highlighted that enterprises who digitize and automate the supply chain are best
equipped to react swiftly to fluid market dynamics.
VC investment into supply chain tech has gradually trended upwards for the last decade,
peaking in 2019 with $1.9bn invested across 242 deals. Valuations for mid- to late-stage
supply chain companies rose 64% YoY in 2019 off the back of the following industry drivers:
• Global demand for cost reduction across the supply chain
• Shift towards centralized networks with increased data visibility and
transparency
• Fragmented industry ripe for consolidation or disruption opportunities
• Low-tech incumbent providers, creating room for digitization and automation
technologies
Supply Chain Tech Funding (2011 – H1 2020)
x Deal Count
Sector Focus:
$0.1bn $0.0bn $0.1bn
$0.5bn
$0.7bn
$1.2bn
$0.6bn
$1.6bn
$1.9bn
$1.0bn
2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
North America Europe South East Asia
10165 133 152 200 229 243 268 24273

Connecting the Industrial Internet
• As operators look to optimize asset utility,
the largest growth opportunity lies in
digitizing physical assets to make them
more flexible and responsive to continuous
improvement.
• Companies essentially rent
infrastructure and computing needs to
run software in the cloud through SaaS-
based models.
• Storage and compute abilities will be
commoditized and replaced by cloud-
based intelligence capabilities.
Enabling a demand-driven model
• The implementation of advanced learning
capabilities can eventually automate entire
supply chains using real-time macro-
and micro-economic forecast
considerations.
• Dynamic supply chains can proactively
adjust for demand-driven changes such
as customer spending, economic/labor
shocks, and geopolitical developments.
Democratizing premium services
• As cloud services get cheaper, premium
services such as artificial intelligence,
machine learning, and advanced
compute will be available at affordable
rates and accessible to all businesses.
• This gives small, asset-light start-ups an
opportunity to innovate and compete with
large, capital-equipped incumbents.
• Intelligent production mechanisms
mutually beneficial to both consumers and
manufacturers.
Supply chains are moving to the cloud for
maximized visibility and functionality
Supplier Producer
Distributor Customer
Supplier
Producer
Distributor
Customer
SCM
Democratization of Supply Chain
Physical Digital
Upload
physical data
to the cloud
Visualize
enterprise
architecture
Analyse digital
architecture to
optimize physical
decisions.
Sector Focus:

White Star Capital
• RFID-based sensor systems can
actively or passively read location,
temperature, pressure, etc.
• Advances in networking protocols
such as LPWaN, BLE, and LoRa
enable enterprises to deploy
massive IoT connectivity at scale in
dense environments.
• Real-time analytics can predict
equipment failures, maintenance
requirements, demand, etc.
• Blockchain technologies are
increasingly being offered to
address automation (smart
contracts), traceability, and security.
Key Sub-Sectors
Some of the key subsectors in supply chain automation are asset
tracking, ERP, and Procurement and Sourcing.
IoT Connectivity and Analytics
Enterprise Resource Planning & Inventory Management
Procurement & Sourcing
The demand for real-time asset visibility, data analytics, and predictive maintenance is
growing rapidly, as enterprises aim to provide spatial context that equips stakeholders with
cost savings and business insights.
Demand forecasting and inventory planning software enables provide the flexibility and
agility that enterprises need to predict and respond to supply chain shocks.
• Enterprises are shifting to a cloud-
based, centralized model that
enables transparency across the
entire supply chain.
• AI and RPA can help predict
uneven consumer demand and
inventory requirements.
• Real-time visibility into the
supply chain allows retailers to
move to just-in-time inventory
management and on-demand
warehousing models.
Digital solutions to track raw materials, sourcing, and payment processing provide
predictive analysis and on-demand procurement capabilities to shift production in
response to shifts in demand.
• “Digital DNA” strategic sourcing
connects every niche of the
supply chain across sourcing,
logistics, shipping, etc.
• AI-driven, cloud-based
software will drive purchasing
software automation.
• Supply chain financing tools
streamline invoicing to avoid
bottlenecks.
27
Sector Focus:

White Star Capital
Challenges
28
Substantial growth opportunity in
SCM software that can help
management teams make more
informed, data-driven decisions and
better orchestrate corporate
strategies across supply chain
vendors.
Supply Chain Orchestration
Trend towards service-based
solutions turning fixed expenditures
into variable costs. On-demand,
subscription-based solutions match
retailers with warehouses that have
excess capacity.
Supply Chain-as-a-Service
Emerging supply chain platforms
are providing digitalized solutions
that provide increased connectivity,
visibility, and predictive analysis to
improve delivery speeds, reduce
costs, and enhance service
outcomes across the supply chain.
Data Analytics
Designed to optimize the cash flow
needs of suppliers and buyers,
enabling suppliers to receive
payments in advance and allows
buyers to alter or extend payment
terms.
Supply Chain Finance
Emerging trend toward
microsupply-chain services, where
specific functions and processes
are isolated and optimized to work
independently from the whole.
Unbundling of Processes
Incumbent Competition Harsh Network Environments Technology Fatigue
As the supply chain becomes more
interconnected and automated,
more vulnerabilities will emerge.
External players can easily access
customer or production data or
hijack the production process.
Cyber Risk
As countries around the world look
to fight e-waste, manufacturing and
supply chain companies will be
pressured to adhere to material
collection, recovery, and recycling
regulations.
Tightening Regulation
As supply chains become
increasingly global, supply chain
technology needs to manage
manufacturer, shipper, and broker
expectations across international
borders.
Stakeholder Buy-in
Edge Computing
Computing processes like
encryption and machine learning
are done directly on the device.
Software is updated automatically,
and security managed centrally
instead of by the user.
The promise of Industry 4.0 and IoT
has been hyped for 5+ years, but
the digital transformation has taken
longer than expected due to the
number of moving parts and
stakeholders required to
successfully implement.
The industrial supply chain often
traverses harsh environments such
as in the sky, across oceans,
underground, or poorly connected
factories. This makes it difficult to
track in real-time without advanced
networking protocol.
Entrenched technical giants such
as Amazon, Walmart, and DHL
have the resources and reach to
automate the supply chain for their
customers, making it difficult for
start-ups to unseat incumbents.
Sector Focus:
Trends

Mass Customization

Smart manufacturing and consumer preferences
are driving mass customization
30
Sector Focus:
Mass Customization
Rapid, flexible product development will ignite personalized product
experiences to satisfy unique customer demands.
Propelled by social networks and ubiquitous digital services, consumers have become critics and
creators. According to a representative 2019 Deloitte survey, 50-60% of UK citizens polled
expressed interest in personalized goods, indicating a willingness to wait longer and pay
more for that benefit. However, only 16-20% purchased personalized goods before: vast
demand for personalization is still unmet. Today, on-demand choices and flexible
product/packaging options increasingly aim to place the customer as a central stakeholder in the
production process.
Honing automated design tools, artificial intelligence, additive manufacturing, and flexible
production lines, enterprises can now offer customers ultra-personalized product experiences
through on-demand, low-volume, high-mix production capabilities. This has been made
possible by the advancement of digital manufacturing and distribution technologies, creating
”smart” factories. ABI Research forecasts the smart manufacturing market to grow to $1
trillion by 2030, with the number of connected endpoints expected to increase by 100x.
Mass Customization becomes especially important during an industrial age where companies
across sectors shorten product release lifecycles to adapt to shifting market conditions. These
products need to be quickly designed, tested, prototyped, manufactured, packaged and
shipped. This all requires automated, scalable customization. Traditionally, the typical fulfillment
process is long, costly, and opaque. However, recent advances in digitization, connectivity, and
computing power enables business to cut out parts of the value chain and pass time and cost
savings along to the customer.
Degrees of product and service personalization in manufacturing
Mass produced, but
modified by business
according to existing
preference data
Mass produced, but
consumer offered
limited options to
customize
Consumer is
involved from
beginning to end
of production
Source: Deloitte Consumer Review - Made to Order: The Rise of Mass Personalization
The Degree of Mass Personalisation under Industry 4.0

Flexible transformation of manufacturing process
enables high complexity, low-volume production
Digital manufacturing helps accelerate speed to market and strategically
manage demand volatility across shortening products life cycles.
Industry 4.0 Product 4.0
Digital Manufacturing /
Intelligent Production
Automated, tech-driven,
agile and responsive
production processes
Data & Connectivity
Integrated digital
data-driven and AI
systems
Customer Centered
Low volume
High complexity &
customization
Shortened time-to-market
Digital manufacturing allows highly adaptable production planning, enabling manufacturers
to be more agile and responsive by making small adjustments to production processes to fit
customized products into production workflows. Planners can directly adapt existing
schedules and processes to create custom products, thereby keeping production
capacity at optimal levels and maintaining value that might have otherwise been lost due
to production slowdowns, premium freight, or other disruptions related to complex orders.
This easier product customization will make the product design process more
collaborative and individualized. Customers will place their trust in the hands of
manufacturers that can provide exactly what they need and meet precise specifications.
Customers and manufacturers will increasingly work together in new product design
processes which will reinforce connections and synergies between them.
Product Customization
Fast Prototyping
IoT and cyber-physical systems (such as 3D printing) make it possible to create prototypes
while providing feedback throughout the whole production cycle. This tech-enabled
feedback loop represents one of the most important ways in which those systems are
changing product life cycles.
In the past, when production was automated but not smart yet, slow and resource intensive
processes would prevent businesses from moving new products through the prototyping
stages in a fast and cost-effective manner. Now, businesses can quickly and easily do
small, prototype batches of developing products. This has shortened product lead
times by enabling product designers to test new ideas and make rapid adjustments
depending on customers feedback, enabling to put out new products more quickly and
with a higher degree of certainty.
Sector Focus:
Mass Customization
Source: Deloitte, Forbes, McKinsey

White Star Capital
Key Sub-Sectors
Some of the key subsectors in mass customization are digital and
distributed machining, personalized fulfillment, and intelligent
warehousing..
Digital and Distributed Machining
D&D machining companies combine rapid design, computer-integrated machining, artificial
intelligence, and flexible production to create ultra-personalized products.
32
• Allows businesses to
monitor real-time customer
demand and dynamically
shift production mixes to
match unique needs.
• Source parts from multiple
suppliers for small-batch,
on-demand requests.
• IoT and AR transform data
back and forth from physical
to digital worlds to deliver
personalized experiences.
• Customize worker training
and tools according to
his/her own needs
Intelligent Warehousing
Warehousing tech companies provide enterprises IoT-enabled inventory management, real-time
location systems, autonomous mobile robots, and workflow-enhancing smart devices.
• Integrate robotic package
pickers, movers, sorters and
forklifts to increase productivity
and lower labour costs
• Optimize inventory stocking
for space and accessibility to
increase product throughput
• Inform human decision-
making, keeping inventory in
motion with market demand
• Integrate directly with
fulfilment services to provide
seamless output to customers
• Unify and enhance
fragmented processes, like
custom order packaging,
tracking, transit, and on-
demand delivery
• Allows both local micro-
fulfilment and regional
fulfilment through urban
distribution networks
• Enable companies to
create dynamic
experiences at checkout,
via emerging tech like AR
• Omnichannel integration to
shopping platforms, with
real-time visibility from
ordering to unboxing
Personalized Fulfillment
Personalized fulfilment companies enable enterprises to offer customized packaging and
shipping solutions while maintaining reduced lead-times, costs, and errors.
Sector Focus:
Mass Customization

White Star Capital
Trends
Challenges
33
WMS vendors are working with
OEMs to provide creative financing
opportunities to accelerate the
adoption of automation.
Democratizing Automation Digital Twins
Advances in connectivity and
networking protocols allow for a far
greater density of devices to be
connected and communicating with
each other for real-time downloads,
uploads, and processing.
WiFi 6 and 5G Connectivity
Advanced Manufacturing
AI-trained design algorithms can
generate a design optimized to
unique end-user requirements– a
key step in enabling mass
customization of industrial parts or
machines.
Design Automation Cybersecurity
A continuous increase in the
number and complexity of
connected devices provides
challenges around aggregating,
storing, analyzing, and securing
sensitive data.
Data Management
Entrenched decision makers in a
historically manual industry are
slow to open up to innovation, with
only 70% of warehouses using
WMS in 2018.
Slow Adoption
Digital transformation requires
outfitting factories with sensors,
paying for software licenses, and
training staff in an industry with
increasingly small margins.
High Capital Expenditure
Implementation and training of
fulfillment tech requires both
industry and technical expertise to
adjust to the specific processes of a
warehouse or enterprise.
Complex Implementation
The last mile of a package’s journey
can be difficult to predict and
requires a lot of historical data to
discover patterns and recurring
challenges.
Last-Mile Problem
Recent innovations could potentially
awaken sleeping logistics
incumbents with deep-pockets,
global networks, and established
customer bases.
Entrenched Incumbents
Advances in Robotics, AI, and
Materials Science have
transformed production, in areas
such as defect detection, additive
manufacturing, and machine
downtime reduction.
Digital profiles of the historical and
current states of physical systems,
based on amassed real-world data,
can provide performance insights and
urge updates to product design or
production processes.
IoT systems exponentially increase
data creation in factories, and open
entry points for nefarious actors–
companies are emerging to service
the complex and unique data-
security needs of manufacturers.
Sector Focus:
Mass Customization

Robotics and
Automation

Robotics represent significant automation and
labor cost savings opportunity
35
Source: Pitchbook, Robotics Business Review
Sector Focus:
Robotics and Automation
Robotic automation streamlines operations across freight, logistics,
warehousing, and last-mile delivery.
Smart robotics and automation are crucial elements to optimizing efficiency across the entire
supply chain. New technology trends enable robots to sense, analyze, and react to
uncontrolled environments, expanding their applications beyond simple, repetitive tasks. The
International Federation of Robots forecasts that 2 million units of industrial robots are
expected to be installed in factories around the world between 2020-2022.
Robots are getting smarter, simpler, more digitized and more collaborative, not just with
humans, but with each other. This significantly reduces the cost and integration barriers it
takes to deploy them at scale and reap the cost and efficiency barriers of their
implementation.
Mobile robot revenues are forecasted to eclipse $3bn, including over 120,000 order fulfillment
robot installments, by the end of 2020. Investments in micro-fulfillment grocery stores, driven
by automated robotics, are expected to double to over $100m in 2020. The industry will be
driven by:
• Further advancements in real-time sensing, processing, and computing to
handle undefined environments and decisions.
• Increased digitization, including standardized interfaces for industrial robots to
connect with other machines.
• Continued decrease in installation and maintenance cost combined with cultural
adoption of co-working with robots.
Robotics Funding (2011 – H1 2020)
x Deal Count
$0.1bn $0.3bn $0.3bn
$0.6bn
$1.3bn
$1.6bn
$3.1bn
$4.1bn
$6.0bn
$1.6bn
2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020
North America Europe South East Asia
66 212118 171 320 472 533 645 712 592

Shift of automation demand to
general purpose
• Use of robotics to facilitate automation in
non-industrial markets, such as food,
pharmaceuticals, waste management, and
security is increasing due to decreased
hardware prices.
• As demand for General Purpose robots
increases, sensor, pneumatic equipment
companies will add value by enabling
end-user customization (what to measure,
how to react).
Robot makers will see margin erosion
• Robot makers have to balance
technological impact on consumer
demand (increased demand in non-
traditional use cases) with cost pressure
on supply side.
• Product-mix of robot demand will most likely
skew towards low-cost hardware, with
flexible end components to build
software platforms on top of.
Hardware that enables software
• A critical component to the facilitation of
General Purpose robots is the ability to
respond to after-market product support
and performance optimization.
• Currently, most robot developers build their
own operating software on top of low-
cost, off-the-shelf components.
• In the future, General Purpose robots will be
able to navigate complex, unstructured,
outdoor environments, and the hardware
will have to support continuously
downloaded software updates.
Robotics trending towards General Purpose
automation
Downstream market effects
Robot demand transformation
First robots were designed to replace
dangerous jobs in structured, industrial
environments
General Purpose software emerges based : safety,
awareness, and ability to navigate complex
environments
The evolution of robots to
general purpose
Spurred by new enabling technologies, robot
functionality expanded to more use cases
Adaptive robotics expand on capabilities to
allow for enhanced speed, performance, and
transferrable intelligence for unstructured
environments
10%
Decline in robot
prices over next 5
years results in
2x
Demand for
General Purpose
robots over next 5
years
60%
General Purpose
robot market
share in 2025
2x
Increase in
demand for non-
conventional
robot end-market
by 2025
Sector Focus:
Source: UBS Q-Series Report: Factory Automation

White Star Capital
Key Sub-Sectors
Robotics can be broken out into mobile, industrial, and medical robotic
subsectors.
Mobile Robotics
Industrial Robotics
Medical Robotics
Autonomous Mobile Robots (AMRs) use a combination of sensors, AI, Computer Vision,
digital twins, and 3D mapping to navigate uncontrolled environments.
• Mobile robots are crucial last-
mile component to the
autonomous supply chain.
• Applications across resource
tracking allocation,
construction monitoring, or
gathering data from
hazardous areas.
• AMRs collect and store real-
time data and can create a
full-scale data architecture to
understand movement
patterns and optimize
processes.
Industrial Robotics automate repetitive, laborious operations in the manufacturing
process while reducing cost structure and error.
• Industrial robots enable
fulfillment and warehouse
automation processes
throughout manufacturing
process.
• Piece-picking and packing
robots expected to be fastest
growing warehousing and
fulfilment technology in 2020.
• Automation of dull, dangerous,
or or dangerous jobs including
packing, unloading, inspection
in warehouses.
• Industrial robots can effectively
handle potentially hazardous
materials.
Medical robotics companies can help automate minimally invasive surgeries and
optimize caregiving process.
37
• Medical robots provide
enhanced precision and
quality control during high-
risk procedures.
• Telerobotics can protect
healthcare professionals in
contagious/hazardous
environments.
• Robotics and visualization
technology enables
procedures that were
previously impossible.
• Computer vision and AI can
log, analyse, and optimize
end-to-end care process and
highlight bottlenecks.
Sector Focus:

White Star Capital
Challenges
38
As robots go digital, they can
analyze repetitive business
processes and identify potential
bottlenecks and inefficiencies
throughout the enterprise supply
chain.
Robotic Process Automation Computer Vision, AI, and ML
Digitization of robots allows new
business models like “leasing”
robots for on-demand use to
decrease capital expenditures and
start-up times.
Telerobotics refers to the practice of
operating robots from a distance.
Virtual simulation can protect
surgeons from radiation risk or
hospital staff from potentially
infectious diseases.
Telerobotics
Innovations in conversational AI,
gesture analysis, and augmented
reality will enable users to interact
with robots in more intuitive, natural
ways that will decrease time to
adoption and training needs.
Intuitive User Interfaces
The initial rollout of robots and
automation technologies requires a
significant capex expense that can
deter key decision makers from
implementation.
Cost of Installation
A lack of common interfaces for
programming or deploying
automation is a key roadblock to
the simple rollout of robotic
technology.
Lack of Homogenous
Programming Platforms
Mobile and medical robots must
pass regulatory measures and
stand-alone industrial robots require
safety equipment.
Safety / Hazardous
Applications
Electronics players share the need
for lower costs but highlight the lack
of backwards compatibility and
retrofitting as a primary challenge to
implementation.
Limited Retrofitting Options
Deployment of automation
technology requires buy-in and
training from population groups that
often lack experience and are
resistant to change.
Lack of Experience with
Automation
Industrial labor forces are often part
of long-standing unions that would
be displaced by automation
technology.
Contracts with Existing Labor
Force
Robotics-as-a-Service
Advances in sensing and computing
technology has expedited the rate at
which robots can grip irregular
objects, navigating crowded industrial
environments, and interacting with
human workers.
Decreasing sensor costs and
advances in the navigation of
unstructured environments has
opened new sectors and use cases
for robotics, including Packing,
Agriculture, Food, and Healthcare.
Moving into New Markets
Sector Focus:
Trends

Geographic Focus
3

Governments in North America support companies in
their initiative to modernize and digitize their
manufacturing facilities
Government support in North America is pushing AI adoption and Industrial revolution,
especially in the US as part of the national American AI initiative
• Canadian federal government’s Scientific Research and Experimental Development program is
offering over $20bn in funding to Canadian tech companies through grants and incentive
programs including capital investments used in the manufacturing of goods and clean energy
and an accelerated deduction for software and computers aimed at industrial innovation.2
• The US Department of Energy announced $89m in funding aimed at innovative manufacturing
technologies to tackle priorities the manufacture of advanced materials, lower thermal budget
processes for industrial productivity, and connected manufacturing facilities.3
• Canada’s historically stable and transparent regulatory environment contributes to increased
private investment in Canada’s digital infrastructure.4
• Deregulation of Canadian electricity standards enables Canadian companies to shift to
renewable, low-impact electricity generation and demand-side management.
• An executive order5 aimed at maintaining US leadership in Artificial Intelligence requires the
Office of Science and Technology Policy to issue guidance to inform development of regulatory
approaches of AI applications to industrial use cases aimed at enabling the robust adoption of AI
technologies.
Policies and regulations in North America are building a path towards
Government funding in North America, specifically Canada, promotes incentives for digital
manufacturing investments and global modernization of manufacturing facilities
Source: Government of Canada
• US Advanced Manufacturing Office (AMO) set forth a muli-year program plan for FY17-21
dedicated to improving energy and materials efficiency, productivity, and competitiveness of
manufacturing and industrial sector
• The Canadian AI Industry 4.0 Mission focuses on establishing industrial R&D collaboration
opportunities specific to AI Manufacturing1
• The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP)
provides advice, connections, and funding to help Canadian small and medium-sized businesses
increase their innovation capacity and take ideas to market.
Sources:
1. Trade Commissioner – Canadian AI and Industry 4.0
2. PWC
3. Energy.gov – Department energy announces 89 million innovative manufacturing technologies
4. BCG
5. The White House website – Memo on Regulation of AI
13.7%
18.4% 18.4%
25.1% 26.6% 27.7%
29.6% 31.4%
Canada
OECD
Average
United
States
Germany
UK
France
Italy
Japan
International Marginal Effective Tax Rates (METRs) comparisons between G7 countries and
OECD average
• A METR is an estimate of how a
new business investment is
taxed, and can be used as a
measure of competitiveness —
balancing the impact of tax costs
against incentives to invest.
• Us and Canada lead the G7 with
lowest overall METRs, therefore
incentivising digital
manufacturing investment
Geographic Focus:
North America

Efforts and incentives in Europe are aligned towards
developing a Green, competitive and digital future for
Industry & Manufacturing
• Alliance pour L’Industrie du Futur (France) – Approx. €10bn of public funding and industry
contributions to companies modernizing production.
• Plattform Industrie 4.0 (Germany) - €200m complemented by financial and in-kind
contributions from industry to reduce industry segregation; transforming research agenda into
practice and developing reference architecture.
• Produktion 2030 (Sweden) - €25m offered by VINNOVA for 2013-2018 and approximately
€25m from industry funded 30 projects, involved over 150 businesses, set up aa PhD school and
obtained 50% industry co-financing for every activity and instrument.
• Intelligent Factory Cluster (Italy) - €45m to set up innovation and research program of
enterprise support program.2
Government funding in Europe is pushing forward manufacturing modernization
For the European Union, Industry & Manufacturing represents
35 million of jobs and 80% of total exports.
As part of the European Green Deal, Europe is aligning its support to businesses on the
three following pillars:
Source: European Commission Industrial Strategy, March 2020
Green
Transition
Supporting
Industries towards
climate-neutrality
Incentivising a spirit
of industrial
innovation
Investing and
supporting
companies in their
digital transition
Global
Competitiveness
Digital
Transition
• The European Commission is implementing ambitious industrial policies to address many policy
challenges hindering the diffusion of Industry 4.0, such as a low adoption rate from SMEs and
increased competition from outside the EU.1
• The Digital Single Market Strategy aims to open up digital opportunities for people and
business and enhance Europe’s position as a world leader in the digital economy.
• The European Commission launched the Digitizing European Industry initiative to reinforce
EU’s competitiveness in digital tech, with a platform for national initiatives and digital innovation
hubs.
Europe regulations are building a path towards Green Industry & Manufacturing
• The European Green Deal sets guidelines around policy for clean energy supply across industry,
production, and consumption.
• Adoption of the European Industrial Strategy to achieve twin transition towards climate
neutrality.3
• European Union member states mandated that 80% of European households must have smart
meters installed by 2020.
Geographic Focus:
Europe
Sources:
1. Interreg Europe - A Policy Brief from the Policy Learning Platform on Research and innovation
2. Europa.eu – European Green Deal Communication
3. Europa.eu – European Industrial Strategy

• Industry4ward Policy (Malaysia) developed and introduced to provide comprehensive
transformation agenda for the manufacturing sector.
• No comprehensive ASEAN-wide regulations on OTT and industry players or distinct approach to
regulation.
• Singapore implemented automation and clean-manufacturing standards, which if adhered
to, can unlock substantial business incentives.
In Asia, trends are showing a general increase in the
use of robotics, specifically in manufacturing as a
substitute to human labor
Robots per 10,000 manufacturing
workers (Top 5 countries)
Source: ITIF Report – Which Nations Really Lead in
Industrial Robot Adoption
240
308
322
658
710
Sweden
Japan
Germany
Singapore
Korea
Actual robot adoption rate as share of
expected adoption rate
• Malaysian Governemnt established Industry Digitalization Transformation Fund of $700m
to accelerate adoption of Industry 4.0 technologies and incentivize investment in automation and
modernization; $450m provided to SMEs under SJPP loan guarantee program.
• Philippines government has allocated $1.4bn to strengthen digital infrastructure through
programs such as Inclusive Industrial Strategy (i3s) and Manufacturing Resurgence Program
(MRP).
• As part of the Smart Nation Initiative, Singapore Government incentivises start-ups to digitize
industry: R&D tax deductions at 2.5x expenditures, 200% tax allowances on qualifying IP
registration, and accelerated tax depreciation on machinery meting automation standards.3
Asian funding is mainly focused on start-ups and SMEs to drive manufacturing digitalization
Policies and regulations in Asia leading the shift to Industry 4.0
Government support across Asia leads to fast adoption of Industry 4.0
• ASEAN Declaration on Industrial Transformation to Industry 4.0 – committed to intensifying
and accelerating ASEAN industrial transformation, digital value chain connectivity, with a special
focus on start-ups, MSMEs, e-government, and smart cities.1
• Singapore’s Smart Nation – New systems implemented including National Digital Identity, e-
Payments, Smart Nation Sensor Platform, Smart Urban Mobility and consolidation of all ports into
one single digitized mega-port, scheduled to open in 2021.
• Indonesia’s 2020 Go Digital Vision maps out programs to support digital economy, including
helping 1m farmers get online, incubating 1,000 tech start-ups, and digitizing 8m SMEs.2
Geographic Focus:
Asia
Sources:
1. Asean Declaration on Industrial Transformation
2. Wall Street Journal – Indonesia set to become a digital economic powerhouse
3. KPMG – industry 4-0: Investment don’t leave government incentives on the table

Partnering With White
Star Capital
4

Introduction to White Star Capital
44
Partnering With White Star Capital
A Global Technology Investment Platform
White Star Capital is a global fund investing in Series A and B.
Our footprint is global: we have 6 offices in New York, Paris, London, Montreal,
Tokyo and Hong Kong
We are partnering with exceptional entrepreneurs with global ambitions and leverage
our extensive experience and international networks to help them scale their
business internationally. Our investments in the US include Dollar Shave Club,
KeyMe, Parsley Health, TheGaurantors, Spatial and Freshly
3 Continents
With a presence in
North America,
Western Europe and
Asia, we invest in
early-stage
technology
companies with
global ambitions
I18N
We leverage our
experience founding
and scaling
businesses to
support the
internationalisation
of our start-ups
Track Record
Our current funds
have close to $300m
under management
and a portfolio of 25+
core companies
which have raised
over $1bn+
Team
An ideal balance
between
entrepreneurial and
operational
experience with
financial and M&A
experience
Global Presence and Portfolio
Physical Hubs Core Hubs
France, Germany,ROEUnited States
Canada
UK and Nordics
SEA

White Star Capital
White Star Capital Portfolio
Companies
45
C O M PA N Y D E S C R I P T I O N
First digital manufacturing platform dedicated for factory equipment. Cloud based CAD
platform which allows mechanical engineers to design and order custom industrial
equipment with a very short lead time.
I N V E S T M E N T R AT I O N A L E
Industrial Original Equipment Manufacturers (OEMs) need to design, develop, and build
custom products with increasingly shorter release cycles. This requires digitization and
automation of the manufacturing supply chain.
Manufacturing equipment suppliers, machine shops, and local distributors continue to have
long-lead times, even for relatively simple parts, and cause major bottlenecks for new
projects.
Large OEMs need to develop large, complex industrial equipment and are high volume
consumers across the the design, prototyping, testing, and manufacturing stages of the
product lifecycle.
O U R O U T L O O K O N S I M I L A R I N D U S T RY O P P O R T U N I T I E S
Modern-day manufacturing companies will need to be agile and flexible throughout their
entire supply chain in order to innovate and react to demand shocks rapidly. Cloud-based
platforms that digitize and automate the supply chain will be in a position to succeed.
2017
STAGE INVESTED TOTAL RAISEDWSC INVESTED IN
Seed $15m
HQ: Montreal, Canada
Etienne Lacroix
CEO
Max Windisch
CTO

White Star Capital
Companies
46
KeyMe offers a convenient way to copy keys and solve lockouts, available via its mobile
app and in-store kiosks. Users can scan and store digital copies of their keys in the cloud
and create duplicate copies anytime they need them.
KeyMe consolidates a massively fragmented industry (locksmiths and key makers) through
a combination of mobile technology and a distributed manufacturing (kiosk) network.
Although 600 million keys are copied annually, each key is unique and customized to each
user’s personal lock.
KeyMe’s scanning technology, computer vision, and AI enable it to mass customize keys
for its users with an innovative approach to manufacturing and distribution.
O U R O U T L O O K O N S I M I L A R I N D U S T RY T E C H
O P P O R T U N I T I E S
We continue to be interested in similar opportunities of companies using a combination of
technology and distributed networks to offer ultra-personalized consumer solutions.
2015
Seed $54m
HQ: New York, USA
Brad Weinshenker
CMO
Jimmy Abbott
CFO
Greg Marsh
CEO

White Star Capital
Companies
47
Europe’s leading managed marketplace for custom packaging, connecting SMEs that
require highly customized packaging, with printing and packaging suppliers that need
volume. Users can develop their packaging using an online editing tool and receiving their
orders within 2-21 days.
Packaging is a central focus for any brand’s retail strategy and is becoming seen as an
extremely effective marketing channel.
Due to this, the custom packaging market has rapidly grown over the last decade,
particularly among SMEs.
A B2B marketplace puts the consumer at the center of their own design process and
provides transparency around pricing, quantities, etc.
O U R O U T L O O K O N S I M I L A R I N D U S T RY T E C H
O P P O R T U N I T I E S
We are very excited about businesses focusing on the consumerization of enterprise –
using B2B marketplaces to provide a transparent view into an otherwise opaque process.
2015
Seed $54m
HQ: Warsaw, Poland
Wojciech Sadowski
CEO
Maciej Zajac
Head of Production

Explore the 2020 Industrial Technology Sector

Explore the 2020 Industrial Technology Sector

Explore the 2020 Industrial Technology Sector

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