The digital transformation that has disrupted and reshaped the industrial sector in recent years, known as the fourth industrial revolution or industry 4.0, has now reached a new chapter with the development of what has been dubbed as industry 5.0.

The digital transformation that has disrupted and reshaped the industrial sector in recent years, known as the fourth industrial revolution or industry 4.0, has now reached a new chapter with the development of what has been dubbed as industry 5.0. This new stage implies a more integrated and circular concept of the manufacturing process, different business models and a new industrial approach that puts technology and innovation at the service of sustainability, wellbeing and resiliency. According to the European Commission, industry 5.0 provides a new vision that “aims beyond efficiency and productivity as the sole goals and reinforces the role and the contribution of industry to society” by placing “the wellbeing of the worker at the centre of the production process” and by using “new technologies to achieve prosperity beyond jobs and growth, while respecting the production limits of the planet”. With these goals in mind, several startups have developed innovative technologies to redesign the industry and have attracted hefty investments from venture capital funds and corporate venturing units of industrial, technological and financial corporations. Despite disruption and delays caused by the covid-19 pandemic, 309 corporate-financed deals were inked in the industrial sector in 2020, worth a total of $6bn, a 54% increase on 2019. In 2021, activity has been even stronger, with 352 deals signed worldwide in the first 11 months of the year, worth an aggregate value of more than $12bn. The global chemical market is expected to continue to expand in the coming years US-based industrial startups have collected the highest number of corporate-financed rounds in 2021, signing 133 deals, followed by Japan-headquartered businesses with 73 rounds and Chinese companies with 44. Japanese telecommunication firm SoftBank, financial services group Fidelity and electronics producer Sony have been among the top corporate investors in industrial deals in the past two years. The strong growth recorded by the industry has been driven by technological advancements achieved in the chemical sector, which has considerably expanded in the past few years, exceeding revenue of $3.3 trillion in 2020, despite the slowdown in activity caused by the pandemic. The global chemical market is expected to grow to $3.7 trillion in 2021 and continue to expand in the coming years at a 4% CAGR, reaching $4.3 trillion by 2025, according to data from Research and Markets. “The chemical sector is experiencing a time of strong transformation, probably the most radical change of the past 100 years,” said Ginger Rothrock, senior director at HG Ventures,…

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