The Baseline is Shifting | Newsletter October 2025

The Baseline is Shifting

AI and automation become operational necessities.

The industrial baseline has shifted: automation and AI are now becoming essentials. This month, we spotlight what’s rising, what’s fading, and what’s next for leaders.

Q3 at a Glance: Two Tracks, One Signal

Tariffs slowed civilian markets while a defense supercycle reshaped supply chains. Mining and upstream gained from government support—clear proof that digital transformation is essential, and speed defines leaders.

Pulse Highlights

• Automation Accelerates:Labor gaps & reshoring drive robotics and AI.

• Defense & Dual-Use: NATO’s 5% pledge reshapes supply chains.
• Capital Flows: IoT funding dipped (-18%), but bets sharpened on logistics, mobility, and energy.

👉 Read the full Q3 Industrial Pulse Check (data-backed) →

September Signals

• Dark Factories: U.S. firms blend cobots with AI; “lights-out” factories still years away.
• China’s Robot Boom: Robot density surges, driving an aggressive industrial upgrade.
• AI in Production: Predictive algorithms cut downtime and boost throughput.
• Cyber Risk Surge: Oil & gas ransomware up 935%, spotlighting resilience.

So What?

Hybrid automation + cybersecurity are now the competitive floor.

Capital in Motion

Funding flows show automation moving from pilots to scale.

Major Rounds / Portfolio Raises

• Figure ($1B), Apptronik ($350M), WEG ($77M and U.S.expansion)
• Profound (U.S.) → $35M Series B to scale AI analytics (100M+ queries/month).
• Altan (Spain) → $2.5M Seed for agentic AI automation in industrial backends.
• Octaipipe (U.K.) → Joins Momenta’s portfolio! We’re proud to back their £1.8M ($2.4M) Seed Plus round, helping cut dat center cooling costs by 40% through privacy-first federated AI.
• Sight Machine (U.S.)→ Secured NVIDIA’s NVentures investment; launched AI agents.
• EquipmentShare (U.S.) → Exploring potential $1B+ IPO.

Portfolio Performance

Recognition

HighByte → Top 5% on the 2025 Inc. 5000 list.

Litmus → Named Challenger in Gartner’s 2025 Magic Quadrant for Industrial IoT Platforms.

Xage Security → Featured in Gartner’s 2025 Hype Cycle for Digital Identity.

Impact

APERIO saved hundreds of analysis hours for a North American energy giant.

Axiom Cloud $158K + 295 tons CO₂ saved across 100+ stores; new U.S. patent.

Fleet Space mapped 1,150 km in real time for Barrick Gold, cutting exploration time & impact.

Fixposition 1 cm accuracy where GPS fails, boosting surveying & construction efficiency.

Minds.ai signed a multi-year deal with GlobalFoundries to deploy AI software across fabs, optimizing semiconductor manufacturing performance.

Overview AI expanded product line + new online shop - now a full ecosystem.

Sensewaves partnered with Nexans to deploy AI for real-time monitoring and optimization of electricity grids, boosting flexibility, reliability, and sustainability.

SMARTEX.AI partnered with ITA Group (a leading German textile research institute) to reduce textile waste.

SprayVision new lab for real-time robotic paint optimization, saving material & emissions.

Xage Security launched Zero Trust for AI, securing industrial systems.

Growth Team: Operator-Led Impact

• Connected Product Growth → Global steam leader: +10% revenue, +30 margin points via new digital solutions. Case study
• Smart Monetization → OEMs shift to recurring revenue (GTM led by Strategy Partner Mobeen Khan).

• Future-Ready Vehicle Tech → OEM modernized IoT stack, boosting connected-vehicle monetization.
• Telco IoT Transformation → Spinout pivoted to SaaS, doubling product revenue.

People, Places & Events

Momentum continues on two fronts:

• New Leadership: Nastaran Asadi (Zurich), Mobeen Khan (Dallas), Kate Kovalenko (Prague).
• Global Presence: Growth Team at Pack Expo Las Vegas, Investment Team at Rockwell Automation Fair 2025, Chicago.

Brainfood: Going Beyond Hype

• Swiss Deep Tech Report 2025 → 60% of VC funding flows into Deep Tech, the highest share worldwide.
• Deloitte Smart Manufacturing → 92% of leaders now prioritize smart factories.
• NAM + CTIA → 5G is powering safer, AI-driven factories in the U.S.
• Chip War (Chris Miller) → The boardroom staple on semiconductor strategy.

YOUR TURN: We’ve highlighted the signals that shape the industry. Which signal will matter most in your Q4 strategy? 

We’ll be back in November with the signals that matter most — what’s gaining momentum, what’s fading, and what’s next.

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Momenta is the leading Industrial Impact® venture capital firm, accelerating industrial innovators across energy, manufacturing, smart spaces, and the supply chain. Our team of deep industry operators has helped scale industry leaders and innovators to improve critical industries, the environment, and people's quality of life for over a decade. PitchBook recognized Momenta as a Top VC Fund Manager from 2023 through 2026 in its Global Manager Performance Score League Tables. For more information, please visit http://www.momenta.vc

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