In a recent episode of the Heavy Hitters podcast, host Ty Finley sat down with Zeeza Cole, Principal at Bain Capital Ventures (BCV), to discuss the firm’s focus on industrial innovation and the factors driving what they call an “industrial renaissance.”
Cole, who leads BCV’s Early Stage Application Software Team with a focus on industrial and vertical software, shared her insights on the convergence of tailwinds propelling the industry forward. “We’re at this unique period where we’re seeing them all together,” Cole explained. “And it’s the perfect combination for what we’re calling our industrial renaissance.”
According to Cole, four key drivers are fueling this new era of industrial innovation:
1. Unprecedented technical advancements in both hardware and software
2. Compounding geopolitical and environmental challenges
3. Public and private alignment on the importance of industrial innovation
4. An incredible wave of talent building in these spaces
BCV has a long history of investing in the physical world, dating back to their investment in Kiva Systems (now Amazon Robotics) nearly 20 years ago. The firm recently launched its Industrial Renaissance practice to build on these successes and capitalize on the current momentum.
While BCV’s industrial group operates similarly to other groups within the firm, they take into account the unique aspects of industrial businesses, such as hardware components, lower margins, capital requirements, and lengthy sales cycles.
It does require a different lens than some of our other subsectors, and ultimately, I think just requires an appreciation and an understanding for the core pain points across the industrial ecosystem.
One of the key lessons BCV has learned from their 20 years of investing in industrial innovation is the importance of selling a platform or system rather than just a point solution. As Cole put it, “The most exciting opportunities will actually go beyond those point solutions and embrace the whole platform or the system.”
BCV also leverages the broader Bain Capital family, which consists of 12 business units, each with its own portfolio. This trusted network of partners across the industrial ecosystem allows the firm to support its portfolio companies in unique ways, such as introducing Kiva to Staples as its first customer.
Looking ahead, Cole is particularly excited about the trend of vertically integrated supply chains, which she believes is still in the early innings. On the other hand, software for hardware or manufacturing is a heavily discussed topic that may be further along in the hype cycle.
For founders seeking to enter this space, Cole offers the “three Ps” as keys to success: Persistence, Passion, and Persuasion. She also advises founders to have a clear line of thought into their fundraising goals and milestones and to take the time to get to know potential investors and understand what a partnership could look like.
As the industrial renaissance continues to unfold, firms like Bain Capital Ventures will play a crucial role in supporting the innovators and entrepreneurs driving this transformation. With a deep understanding of the industry’s pain points and a wealth of experience backing successful companies, BCV is well-positioned to help usher in this new era of industrial innovation.