Tech First: The Future of Infrastructure
In today’s dynamic tech landscape, enterprise technology is not merely an industry to watch but also a rare opportunity for strategic investment. As we delve into the post-pandemic supply chain challenges, the surging corporate spend in tech, and the imminent wave of digitalization, we uncover not just challenges but a strategic roadmap to transformative opportunities.
Supply Chain Realities Exacerbated by Geopolitical Pressures on the System
The global disruptions brought forth by the pandemic laid bare how outdated and insecure our supply chains are. From manufacturing to logistics, we witnessed a cascade of challenges that demanded our attention and strategic intervention. The cracks in our infrastructure have paved the way for a seismic shift in the market. The $1.2 trillion Infrastructure Bill and the $52.7 billion CHIPS Act are ringing in a new era of technological transformation1 . The bills direct federal funds towards transportation, energy, and climate infrastructure projects and utilizes a combined focus on growth and broadly spreading economic opportunity.
Source: Data Bridge Market Research
Enterprise Technologies Continue to Outperform
Corporate spend in enterprise technology is on the rise, with an estimated 11.5% CAGR through 2030. The growth drivers? Artificial Intelligence (AI) and intelligent software are at the forefront.
Cybersecurity and enterprise software continue to be the #1 area of investment, followed closely by IT services. If we want to take advantage of this ‘once-in-a-generation’ expenditure, we should build our infrastructure to be smarter, more resilient and easier to maintain. Along with leaps in technology such as AI, data analytics, cloud-base software, cybersecurity and novel sensors, we can build the infrastructure of the future, similar to how Partsimony uses their proprietary AI algorithm and data analytics to connect corporations with manufacturers around the world, thereby eliminating the middlemen, reducing costs, speeding up time to market and increasing margins. This is where the future of the supply chain is moving.
2023 marked the year of optimization, while 2024 is poised for increased consumption of cutting-edge tech. COVID-induced digitalization has fast-tracked the need for investment in the future of work, with 51% of IT spending shifting to the cloud by 2025.
The Timing is Impeccable
As a result of the pandemic, US infrastructure received a health check from the American Society of Civil Engineers and we earned a C- 2 , largely due to thousands of aging roads, bridges, airports, dams, levees and water systems, the lack of high-speed broad internet access and climate change threatening to worsen our already weak system. “Tech-first or go home” — that’s the mantra every industry is chanting now, creating a $833 billion opportunity as old-line industries reinvent themselves. Take Transmute — for every trade shipment, their secure digitalization platform ensures fast port clearance and full compliance with US CBP standards.
“Bridging the data silos across global supply chains requires meeting customers where their data already lives today.”
- Karyl Fowler, CEO of Transmute
Industrial Automation
At Alinea Ventures, we see an opportunity to merge our need for revitalized infrastructure with the fourth industrial revolution, modernizing technologies and processes through the application of machine learning, automation and cloud computing and data exchange.
While the opportunity set is vast, to the tune of $176B, building and integrating these systems at scale requires specialized skill sets that cut across the technology stack.
Source: Grandview Research
Call to Action for Innovation in Infrastructure
As investors and founders, this is our clarion call to seek out high-performing players in enterprise technology. These are the architects of solutions that bridge the gaps in our supply chains, ensuring resilience and security. By embracing this challenge, we contribute not only to the growth of a critical industry but also to the creation of a robust and sustainable economy.
We stand at the cusp of an era where enterprise technology is not just a buzzword; it is the driving force behind the future. As we navigate this exciting landscape together, let’s seize the opportunities that lie ahead and redefine the rules of the game. Here’s to the future — where innovation meets impact!
Investments Update
Our team has been investing actively in the last few years. We are excited to share updates from some of our amazing founder teams:
- Welcome Transmute , the latest investment in Alinea Ventures’ portfolio! Transmute is a secure data management platform for global trade. Transmute’s Verifiable Data Platform is working with the U.S. Department of Homeland Security and U.S. Customs and Border Protection to bring data interoperability and transparency to every step of the supply chain, proving that secure, real-time verifiable data exchange is possible.
- Partsimony gains broader access and integration to their client’s infrastructure by onboarding to SAP’s ERP and S/4HANA platforms. Their platform enables their enterprise B2B customers to build more adaptive manufacturing supply chains optimized for resilience and sustainability. Link for more information: Find Partsimony on SAP Store.
If you are interested in learning more about any of these companies, including about their products, clients, pilots, and investments, please do not hesitate to reach out.
Citation:
(1) Modernizing U.S. Infrastructure: the Bipartisan Infrastructure Law
(2) Potholes, Grid Failures, Aging Tunnels And Bridges: Infrastructure Gets A C-Minus
For information only.
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