Harbor View’s 2021 Industrial Technology Annual Report

As we continue to adjust to a world reshaped by the pandemic, venture investment and M&A activity continues at a brisk pace across the industrial technology sector. Venture capital investments reached record-breaking levels in 2021 as investors piled into start-ups and late-stage industrial companies that offer solutions to ease supply chain fallout and labor shortages. Non-traditional VC investors – including VC arms of corporations, sovereign wealth funds, and others – are driving a significant portion of VC investment activity. Industrial Technology M&A activity remained robust in 2021 as industrial companies looked to acquisitions as a tool to diversify supplier exposure and target high-margin end markets.

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Broader themes will play a role in 2022 deal activity:

• Capital Availability: Interest rate hikes and tightened policies threaten the availability of cheap capital.
• Infrastructure Spending: The government's commitment to infrastructure advancement presents attractive opportunities for PE investors and strategic acquirers.
• Economic Uncertainty: Labor shortages and supply chain disruptions cause companies to consider long-term effects on business.
• Strategic M&A: Corporations aggressively use M&A to gain scale, advance technology, and cut costs.
• ESG: Environmental, Social, and Corporate Governance (ESG) factors continue to emerge as significant drivers in deal activity.

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Learn more about Industrial Technology, supply chain disruptions, and 2021's notable deal spotlights. Download our 2021 annual report

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DISCLAIMER This presentation is intended for information and discussion purposes only and does not constitute legal or professional investment advice. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of Harbor View Advisors, LLC (“HVA”). The information in this presentation was compiled from sources believed to be reliable for informational purposes only. HVA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented.