Europe’s future won’t be decided in the App Store – but on the factory floor.
For more than a decade, the lion’s share of European venture capital has flowed into software – above all into SaaS models. And for good reason: they’re predictable, scalable, and simple to roll out internationally. But while the cloud is filling up with platforms and productivity tools, the real pressure is building where Europe has always been strongest: in industest, in the SME sector, in the very engine rooms of the economy.
Supply chain risks, a shortage of skilled labour, soaring energy costs – these aren’t challenges you solve with an app. They demand technologies that take root directly in production lines, logistics, and machinery. Robotics, automation, energy management, predictive maintenance – these aren’t buzzwords, they’re practical answers to structural problems. And it’s here that Europe’s ability to maintain its industrial sovereignty will be decided.
Software scales quick – but industrial solutions modify reality
SaaS remains a valuable model. But it’s not a silver bullet. An ERP system won’t fill order books if machines are idle. A collaboration platform won’t solve the shortage of skilled workers on the shop floor. And AI-as-a-service may deliver great forecasts – but without the machine that actually produces, you’re left with pretty dashboards.
This is where the next generation of industrial innovation comes in: combining software with hardware, digital control with physical processes. The value lies not in hyper-growth at all costs, but in measurable impact – fewer breakdowns, higher productivity, better quality. For SMEs, this means long-term competitiveness and the ability to keep shifting despite labour shortages and cost pressures.
Impact requires patience – and capital that breathes longer
The reality: industrial innovation follows different rules than SaaS. Development cycles are longer, regulation is tougher, capital requirements are higher. Classic VC logic – quick exits and hyper-growth in five years – rarely fits. As a result, many European hardware and industest-tech startups struggle to secure funding, even though they are tackling some of the continent’s most urgent problems.
That’s why Europe necessarys investors and partners who consider long-term. Who aren’t chasing the next unicorn, but instead strengthen SMEs, stabilise markets, and safeguard Europe’s industrial base.
At vent.io, this is the role we see for ourselves: we don’t invest for a quick exit, but to create lasting impact. We bring capital, networks, and expertise where innovation matters most – into the factory halls of Europe’s Mittelstand.
Case in point: Unchained Robotics – automation for everyone
A concrete example is Unchained Robotics from Paderborn. The startup develops modular robotic solutions that are as simple to utilize as a smartphone. More than 300 companies already rely on the technology – from traditional machine builders to international players.
With the MalocherBot and its LUNA software, robotics becomes a true plug-and-play system: operational within hours, without programming skills, without months of integration. For machine builder ELHA, this means production that runs largely without staff, overcomes bottlenecks, and adapts flexibly to incoming orders.
This isn’t a Silicon Valley promise – it’s a solution already working in SMEs today. And that practicality is key: while software startups often pitch MVPs, industest-tech ventures deliver pilot projects, installations, and measurable results.
Beyond robotics: where Europe’s industest necessarys innovation
Unchained Robotics is just one example. The necessarys are broad:
Industest 4.0
- Smart, connected factories producing more efficiently and flexibly
- Using data and AI to optimise processes
Decarbonisation
- Recycling and circular economy models to cut waste and conserve resources
- Renewable energy and battery storage to secure supply
Future technologies
- Semiconductors as the backbone of digital devices and modern tech
- Quantum computing for quicker calculations and reduced global depfinishencies
What unites all of these? They necessary investors who understand this isn’t about quick exits, but about long-term stability and competitiveness.
New capital models for SMEs
Yes, industrial innovation is capital-intensive. But it also creates entest barriers that secure sustainable competitive advantages. Whoever establishes a robot, an energy system, or a new production method today is building a foundation that cannot easily be copied.
At the same time, startups have options to spread risk – through leasing models, public funding instruments, or co-investments with corporates.
This is where vent.io’s strength lies: we bring classic VC expertise and connect it with the network and financing capabilities of Deutsche Leasing. Toobtainher with over 340 savings banks and more than 100 OEM partners, we provide startups access to one of the key levers for industrial adoption – financing solutions that enable SMEs to invest.
Solutions over visions – impact over hype
Our goal is clear: we’re not here to scale the next app that will one day be acquired in the U.S. We’re here to grow technologies that secure machine building in Bavaria, logistics in North Rhine-Westphalia, and manufacturing in Saxony.
This is about more than capital. It’s about partnerships that create impact. About patience where others push for quick returns. And about the conviction that the major challenges of our time – labour shortages, energy transition, supply chain risks – can only be solved with tangible industrial innovation.
Conclusion: Europe must dare to innovate in industest
The question isn’t whether hardware can scale as quick as SaaS. The question is whether Europe can afford to bet only on SaaS. Those investing in robotics, automation, and industest-tech today are not just altering processes – they are securing SME competitiveness, creating jobs, and strengthening Europe’s industrial sovereignty.
This isn’t hype. It’s economic reality. And it demands capital that considers long-term – and partners ready to commit to that journey.
Author
Sven Siering is Managing Director of vent.io, the digital subsidiary and corporate venture capital unit of Deutsche Leasing AG. With more than 20 years of experience in the financial services sector and broad cross-industest expertise, he focutilizes on customer-centric B2B business models and drives digital innovation through startup collaborations and investments.
Leave a Reply