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Arctic Wolf: The cybersecurity startup providing end-to-end threat monitoring

<div>
 <ul>
 <li>
 
 Overall funding volumes declined sharply amid investor caution
 
 </li>
 <li>
 
 Complementary offerings rose alongside AI-related product launches
 
 </li>
 <li>
 
 Regulators focused on promoting transparency and consumer protection
 
 </li>
 </ul>
 
 
</div>

<div>
 
 This Edge Insight focuses on notable activities related to the sectors covered by SPEEDA Edge under the FinTech vertical from July 2024 to September 2024 (Q3 2024): FinTech: Banking &amp; Infrastructure, FinTech: Blockchain, FinTech: Payments, Wealth Tech &amp; Sustainable Finance, and InsurTech.
 
 <hr/>
 <h1>
 Key takeaways
 </h1>
 <ul>
 <li>
 <h3>
 Regulations
 </h3>
 <ul>
 <li>
 
 Regulators focused on promoting transparency and consumer protection with specific disclosure requirements and stringent record-keeping for non-bank players: 
 The US Consumer Financial Protection Bureau (CFPB)'s 
 <a href="https://sp-edge.com/updates/31763">
 proposed rule
 </a>
 to classify paycheck advance programs as consumer loans aims to ensure that workers understand the fees involved, addressing potential concerns around hidden costs. Similarly, the US Federal Deposit Insurance Corporation (FDIC)'s 
 <a href="https://sp-edge.com/updates/33754">
 new rule
 </a>
 on third-party deposits strengthens record-keeping and reconciliation practices, which is critical to safeguarding consumer funds and maintaining trust in non-bank financial intermediaries. These regulatory moves highlight a 
 growing emphasis on stricter oversight for non-bank players
 , ensuring that they meet higher standards of disclosure and security. This would ultimately promote a safer, more transparent financial ecosystem.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 <h3>
 Funding
 </h3>
 <ul>
 <li>
 
 Overall funding volumes declined sharply amid investor caution: 
 We tracked a decline in funding volumes in the FinTech sector in Q3 2024. Funding totaled 
 USD 3.3 billion
 , representing a 
 69% decrease YoY
 and a 
 50% decline QoQ
 . This marks the 
 lowest funding recorded
 over the 
 past 12 months
 , as all sub-sectors within the space faced similar declines.&nbsp;The decrease can also be attributed to 
 fewer completed mega deals
 , with only nine finalized, compared with 17 in Q3 2023. This softening of the investor climate can be a result of 
 increased caution among investors
 , who anticipated rate cuts for most of the quarter alongside political risks from the upcoming US elections.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 <h3>
 Product updates
 </h3>
 <ul>
 <li>
 
 Complementary offerings rose alongside AI-related product launches, driven by automation and insights: 
 AI-related product launches sustained their momentum in Q3 and were prominent in the 
 Business Expense Management
 , 
 Capital Markets Tech
 , 
 Financial Wellness Tools, 
 and 
 InsurTech: Infrastructure 
 industries, primarily targeting customer needs for automation and insights. Notable solutions included financial coaching chatbots from 
 <a href="https://sp-edge.com/companies/365556">
 BrightPlan
 </a>
 and 
 <a href="https://sp-edge.com/companies/613875">
 Pocketnest
 </a>
 to provide individuals tailored financial advice, fully automated accounts payable platforms from 
 <a href="https://sp-edge.com/companies/746175">
 Airbase
 </a>
 and 
 <a href="https://sp-edge.com/companies/410068">
 Stampli
 </a>
 to eliminate discrepancies and enhance accuracy of matching POs, and enhanced insurance claims management tools from 
 <a href="https://sp-edge.com/companies/812928">
 Five Sigma
 </a>
 and 
 <a href="https://sp-edge.com/companies/570493">
 CLARA Analytics
 </a>
 to reduce claims processing times and cost for the carrier and claimant.&nbsp;
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 <h3>
 Partnerships
 </h3>
 <ul>
 <li>
 
 Activities centered around enhancing existing product portfolio:
 Most partnerships within FinTech aimed at forging alliances to develop and/or add new features to 
 complement existing offerings
 and 
 expand market reach
 . However, compared with previous periods, we saw a 
 decline in AI-related partnerships 
 this quarter. The FinTech: Banking &amp; Infrastructure sector accounted for the most partnerships, with notable activities being 
 <a href="https://sp-edge.com/companies/71676">
 Google Cloud
 </a>
 and 
 <a href="https://sp-edge.com/companies/155763">
 Sionic
 </a>
 partnering to launch a comprehensive 
 <a href="https://www.businesswire.com/news/home/20240815806806/en/Sionic-Announces-Fraud-Protection-Service-Using-Google-Cloud-AI-Technology">
 fraud detection and mitigation service
 </a>
 and 
 <a href="https://sp-edge.com/companies/8781">
 Ford
 </a>
 launching a new 
 <a href="https://sp-edge.com/updates/31431">
 usage-based auto insurance
 </a>
 for commercial customers in partnership with 
 <a href="https://sp-edge.com/companies/520401">
 Pie Insurance
 </a>
 .
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 <h3>
 M&amp;A
 </h3>
 <ul>
 <li>
 
 Existing offerings were enhanced through bolt-on acquisitions, a key driver of M&amp;As: 
 In Q3 2024, we counted 
 15 M&amp;A transactions
 in the FinTech sector, a slight decline from 22 deals in the previous quarter. The primary motives for these deals were 
 enhancing existing offerings and expanding into new geographies
 . The most valuable deal was 
 <a href="https://sp-edge.com/companies/12478">
 Paylocity&rsquo;s
 </a>
 acquisition of 
 <a href="https://sp-edge.com/updates/33300">
 Airbase
 </a>
 for ~USD 325 million to expand its payroll and human capital software solutions to include business expense management.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 <h3>
 Outlook
 </h3>
 <ul>
 <li>
 
 AI- and GenAI-related product launches and collaborations remain a key priority for FinTechs: 
 The sector is primed for significant integration of these technologies, supported by recent developments, such as 
 <a href="https://sp-edge.com/companies/3670845">
 TranscendAP&rsquo;s
 </a>
 release of the latest version of its AI-powered 
 <a href="https://sp-edge.com/updates/31988">
 accounts payable automation platform
 </a>
 and BrightPlan's introduction of an AI-driven 
 <a href="https://sp-edge.com/updates/32623">
 financial wellness coach
 </a>
 . We think more FinTech firms will adopt these solutions into both internal workflows and customer-facing operations, aiming to enhance efficiency, improve service quality, and better meet customer needs. Immediate applications are likely to include the development of chatbots that leverage proprietary and customer data to enhance customer service. A 
 <a href="https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2024/future-proofing-banking-enterprise-transformation-imperative.pdf">
 KPMG survey in March 2024
 </a>
 also highlights that nearly 40% of bank leaders expected 6%&ndash;20% of their team&rsquo;s daily tasks to be executed by GenAI by the end of 2024, and 65% of bank executives indicated that GenAI would be a key part of their long-term innovation strategies.
 
 </li>
 <li>
 
 Funding volumes likely to rebound from Q4 2024 onward, despite temporary dip: 
 In Q3 2024, funding volumes declined following two consecutive QoQ increases. This downturn&mdash;expected to be temporary&mdash;was largely owing to a cautious wait-and-see approach among investors, who anticipated rate cuts amid rising geopolitical risks. However, with the Federal Open Market Committee (FOMC) reducing interest rates by 50 basis points in September 2024, the FinTech funding landscape is expected to improve. We also anticipate a shift toward equity financing rather than the debt funding that has dominated in recent quarters, especially across mega deals. According to a 
 <a href="https://www.svb.com/globalassets/trendsandinsights/future-of-fintech-report-2023_final.pdf">
 Silicon Valley Bank report
 </a>
 , VC appetite is likely to favor early-stage startups (due to the potential for higher returns) and those demonstrating strong profitability.&nbsp;
 
 </li>
 <li>
 
 Startups to focus on IPO readiness, with potential listings expected in 2025: 
 After a lackluster year for FinTech IPOs in 2023, characterized by declining valuations, many startups and investors are now looking toward public listings as market conditions begin to improve. The easing of monetary policy is likely to boost valuations, but uncertainty surrounding the upcoming US elections and concerns over a potential soft landing may delay a surge in IPOs until 2025. Companies such as 
 <a href="https://sp-edge.com/updates/27565">
 eToro
 </a>
 , 
 <a href="https://sp-edge.com/updates/27044">
 Klarna
 </a>
 , 
 <a href="https://sp-edge.com/updates/27295">
 Monzo
 </a>
 , 
 <a href="https://sp-edge.com/updates/27220">
 WeBull
 </a>
 , and 
 <a href="https://sp-edge.com/updates/27702">
 Zilch
 </a>
 have announced plans to go public within 12&ndash;24 months. Additionally, an uptick in M&amp;As within the sector is likely driven by investors seeking opportunities in distressed assets (as seen with 
 <a href="https://sp-edge.com/companies/35375">
 Klarna&rsquo;s
 </a>
 acquisition of 
 <a href="https://sp-edge.com/updates/32819">
 Laybuy
 </a>
 this quarter) and companies looking to consolidate market share.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
</div>

FinTech (Q3 2024): Funding dips to 12-month low as investors take a wait-and-see approach; regulators tighten grip on neobanks

<div>
 <ul>
 <li>
 
 Q3 2024 activity remained fairly consistent compared with the previous quarter 
 
 </li>
 <li>
 
 Healthcare continued to be tough for retail giants
 
 </li>
 <li>
 
 Health systems turned to Big Tech to harness the powers of GenAI
 
 </li>
 </ul>
 
 
</div>

<div>
 <ul>
 <li>
 
 Healthcare continued to be tough for retail giants. 
 Following its exit from the virtual care market with the sale of 
 <a href="https://sp-edge.com/companies/619722">
 MeMD
 </a>
 in Q2 2024, 
 <a href="https://sp-edge.com/companies/22572">
 Walmart
 </a>
 shifted its focus toward the specialty pharmacy sector where its core strengths lie. Meanwhile, 
 <a href="https://sp-edge.com/companies/318681">
 Walgreens
 </a>
 was also facing financial pressure in the healthcare space and was reportedly contemplating selling its stake in 
 <a href="https://sp-edge.com/companies/324761">
 VillageMD
 </a>
 , among other restructuring options.
 
 </li>
 </ul>
 
 
 
 <ul>
 <li>
 
 Health systems turned to Big Tech to harness the powers of GenAI.
 During the quarter, health systems entered partnerships with Alphabet, 
 <a href="https://sp-edge.com/companies/201465">
 Microsoft
 </a>
 , and 
 <a href="https://sp-edge.com/companies/203208">
 Amazon
 </a>
 to leverage their GenAI solutions for more efficient and personalized healthcare delivery. These solutions focused on automating complex tasks in R&amp;D and clinical operations and enhancing capabilities around patient engagement.
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 <a href="https://sp-edge.com/companies/1658">
 Apple
 </a>
 announced significant advancements in health technology, addressing widespread health issues like sleep apnea and hearing loss
 . During the quarter, the company 
 <a href="https://sp-edge.com/updates/33653">
 introduced
 </a>
 sleep apnea detection features on its latest Apple Watch models: Series 9, Series 10, and Ultra 2. In addition, it 
 <a href="https://sp-edge.com/updates/33543">
 introduced
 </a>
 a hearing health feature for its AirPods Pro 2 to offer the first all-in-one hearing health experience, featuring a clinically validated hearing test and an over-the-counter hearing aid capability for users with mild to moderate hearing loss. Both features were granted FDA approval during the quarter.
 
 </li>
 </ul>
 
 
</div>

Tech & retail giants in healthcare (Q3 2024): Big Tech ramps up AI drive; retailers dial it down

<div>
 <ul>
 <li>
 
 Funding recovered sharply, largely led by Auto Tech and Smart Mobility Information Industries
 
 </li>
 <li>
 
 Auto tech partnerships focused on autonomous vehicle deployment, while major EV and passenger eVTOL aircraft collaborations expanded infrastructure
 
 </li>
 <li>
 
 Auto tech and eVTOL updates focused on product testing and tech development, while EV makers invested in charging solutions and battery technologies
 
 </li>
 </ul>
 
 
</div>

<div>
 
 This Edge Insight focuses on notable activity from July 2024 through September 2024 (Q3 2024) relating to five SPEEDA Edge industries under the Transportation &amp; Logistics vertical: 
 <a href="https://sp-edge.com/industry/67">
 EV Economy
 </a>
 (excluding commercial EVs), 
 <a href="https://sp-edge.com/industry/70">
 Auto Tech,
 </a>
 
 <a href="https://sp-edge.com/industry/93">
 Shared Mobility,
 </a>
 
 <a href="https://sp-edge.com/industry/66">
 Smart Mobility Information,
 </a>
 and 
 <a href="https://sp-edge.com/industry/115">
 Passenger eVTOL Aircraft
 </a>
 .
 
 <hr/>
 <h1>
 Key Takeaways
 </h1>
 <ul>
 <li>
 
 Funding
 
 <ul>
 <li>
 
 Mega rounds in the Auto Tech industry drove funding growth:
 The
 
 Passenger Mobility Tech sector raised USD 8.2 billion in Q3, up 47.5% YoY. This growth was largely led by autonomous vehicle makers (such as 
 <a href="https://sp-edge.com/updates/31849">
 Waymo, which raised USD 5 billion)
 </a>
 in Auto Tech, using the funding to develop self-driving technology further and enhance their operations. Waymo expanded its driverless ride-hailing service to Los Angeles and Austin while opening up rides in San Francisco to all users without a waitlist. The only other industry to witness growth in funding was Smart Mobility Information (up 12.8% YoY), as opposed to EV Economy (down 51.7% YoY despite 
 <a href="https://sp-edge.com/updates/32495">
 Lucid&rsquo;s USD 1.5 billion
 </a>
 deal), Passenger eVTOL Aircraft (down 44.7% YoY), and Shared Mobility, where funding was absent.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Partnerships
 
 <ul>
 <li>
 
 Auto Tech companies focused on expanding autonomous shuttle and taxi services while enhancing connected car features and safety: 
 Providers like 
 <a href="https://sp-edge.com/updates/32228">
 Beep,
 </a>
 
 <a href="https://sp-edge.com/updates/29176">
 Oxa,
 </a>
 and 
 <a href="https://sp-edge.com/updates/31213">
 May Mobility
 </a>
 , formed partnerships to expand their reach, and 
 <a href="https://sp-edge.com/companies/40596">
 Uber
 </a>
 looked to add robotaxi to its platform with Cruise, 
 <a href="https://sp-edge.com/updates/32858">
 Cruise,
 </a>
 
 <a href="https://sp-edge.com/updates/33056">
 Wayve,
 </a>
 
 <a href="https://sp-edge.com/updates/33593">
 Waymo,
 </a>
 and 
 <a href="https://sp-edge.com/updates/33992">
 WeRide.
 </a>
 
 <a href="https://sp-edge.com/updates/26351">
 Like Q2,
 </a>
 GenAI integration was a key focus, with 
 <a href="https://sp-edge.com/companies/117627">
 Volkswagen
 </a>
 partnering with 
 <a href="https://www.prnewswire.com/news-releases/volkswagen-integrates-ai-into-the-myvw-mobile-app-with-google-cloud-302257003.html">
 Google Cloud
 </a>
 and 
 <a href="https://sp-edge.com/updates/33177">
 Cerence
 </a>
 to improve in-car infotainment. These advancements are expanding the autonomous shuttle market and enhancing user experience by improving how passengers utilize travel time, potentially impacting shuttle operations and user engagement.
 
 </li>
 <li>
 
 The expansion and enhancement of charging infrastructure for EVs and eVTOLs continued: 
 Notable collaborations in the 
 EV Economy
 included automakers teaming up with third parties to expand EV charging networks (e.g., 
 <a href="https://sp-edge.com/updates/31836">
 Mercedes-Benz,
 </a>
 
 <a href="https://www.pv-magazine-australia.com/press-releases/jet-charge-and-toyota-roll-out-biggest-dealer-charging-network-in-australia/">
 Toyota,
 </a>
 
 <a href="https://driveteslacanada.ca/news/gm-partners-with-tesla-to-build-1000-charging-points-in-mexico/">
 GM).
 </a>
 
 Passenger eVTOL Aircraft
 players, such as 
 <a href="https://sp-edge.com/updates/31929">
 Lilium
 </a>
 , 
 <a href="https://sp-edge.com/updates/31895">
 Supernal,
 </a>
 
 <a href="https://sp-edge.com/updates/31807">
 Wisk Aero,
 </a>
 and 
 <a href="https://sp-edge.com/updates/31013">
 EHang
 </a>
 , also concentrated on vetiport infrastructure building. This continued trend of building EV and eVTOL infrastructure may support future adoption. 
 <a href="https://sp-edge.com/updates/32613">
 Archer Aviation,
 </a>
 
 <a href="https://sp-edge.com/updates/31415">
 Lilium,
 </a>
 
 <a href="https://sp-edge.com/updates/34177">
 Dufour Aerospace,
 </a>
 
 <a href="https://sp-edge.com/updates/31770">
 EHang,
 </a>
 and 
 <a href="https://sp-edge.com/updates/31997">
 Crisalion Mobility
 </a>
 also continued receiving eVTOL aircraft orders.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Product updates
 
 <ul>
 <li>
 
 Passenger eVTOL geared for commercialization with new product launches and meeting testing milestones:
 As eVTOL players inched closer to commercialization, several aircraft unveilings by 
 <a href="https://sp-edge.com/updates/34178">
 BETA Technologies,
 </a>
 
 <a href="https://sp-edge.com/updates/31141">
 ERC-System,
 </a>
 
 <a href="https://sp-edge.com/updates/31652">
 Vertical Aerospace,
 </a>
 
 <a href="https://sp-edge.com/updates/31806">
 Supernal LLC,
 </a>
 and 
 <a href="https://sp-edge.com/updates/31804">
 Joby Aviation
 </a>
 (similar to 
 <a href="https://sp-edge.com/updates/30709">
 Sirius Aviation
 </a>
 in Q2) were announced this quarter. Similarly, this was reinforced by achieving testing milestones by 
 <a href="https://sp-edge.com/updates/33200">
 Archer Aviation,
 </a>
 
 <a href="https://sp-edge.com/updates/33199">
 Xpeng AeroHT,
 </a>
 
 <a href="https://sp-edge.com/updates/33046">
 Dufour Aerospace,
 </a>
 
 <a href="https://sp-edge.com/updates/32841">
 Lilium,
 </a>
 
 <a href="https://sp-edge.com/updates/32470">
 Volocopter,
 </a>
 and 
 <a href="https://sp-edge.com/updates/31143">
 EHang
 </a>
 (similar to 
 <a href="https://sp-edge.com/updates/30382">
 Archer Aviation
 </a>
 in Q2).&nbsp;
 
 </li>
 <li>
 
 Autonomous and automated driving tech and EV battery tech development continued: 
 <a href="https://sp-edge.com/companies/314571">
 Alphabet&rsquo;s
 </a>
 Waymo and 
 <a href="https://sp-edge.com/companies/29802">
 GM&rsquo;s
 </a>
 Cruise continued their autonomous vehicle testing in new geographies, especially in Californian cities. Similarly, 
 <a href="https://sp-edge.com/updates/32087">
 Helm.ai
 </a>
 launched a GenAI-based advanced driver assistance system (ADAS) and Level 4 driving simulation, which would help improve safety and reduce gaps in testing. On the EV side, 
 <a href="https://sp-edge.com/updates/33773">
 CATL
 </a>
 and 
 <a href="https://sp-edge.com/updates/32083">
 LG Energy Solution
 </a>
 introduced new battery technologies, another persistent trend from previous quarters, 
 <a href="https://sp-edge.com/insights/31432#:~:text=In%20terms%20of,plants%20in%20Italy.">
 also led by CATL and ACC.
 </a>
 Notably, EV companies introduced new charging solutions where multiple connector types can be combined into one charging port or vice versa, and enhanced the compatibility of existing systems (
 <a href="https://sp-edge.com/updates/33771">
 Beam Global,
 </a>
 
 <a href="https://sp-edge.com/updates/32484">
 ChargePoint,
 </a>
 and 
 <a href="https://sp-edge.com/updates/33798">
 GM).
 </a>
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 M&amp;As
 
 <ul>
 <li>
 
 Smart Mobility Information and Auto Tech industries drove M&amp;A deals:
 Six notable M&amp;A deals took place related to Smart Mobility Information (3), Auto Tech (2), and EV Economy (1). Several companies engaged in acquisitions to enhance technology and expand services within these industries (e.g., 
 <a href="https://sp-edge.com/updates/33172">
 Optibus,
 </a>
 
 <a href="https://sp-edge.com/updates/32996">
 Swiftly,
 </a>
 
 <a href="https://sp-edge.com/updates/32238">
 Volvo Cars,
 </a>
 and 
 <a href="https://sp-edge.com/updates/33780">
 Beam Global).
 </a>
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Regulations
 
 <ul>
 <li>
 
 Regulators set the stage for safer autonomous vehicle and eVTOL aircraft development and deployment: 
 We noted new legislative actions in California and Kentucky for tightened and enforced regulations on autonomous vehicle deployments by requiring operators to report detailed operational data while granting more approvals for autonomous vehicle testing in California (
 <a href="https://sp-edge.com/updates/32585">
 WeRide
 </a>
 ). 
 Similarly, China approved autonomous driving tests in Shenzen and Beijing (
 <a href="https://sp-edge.com/updates/33136">
 Pony.ai
 </a>
 and 
 <a href="https://sp-edge.com/updates/32314">
 Mercedes-Benz).
 </a>
 Meanwhile, companies worldwide secured approvals for eVTOL development 
 <a href="https://sp-edge.com/updates/32439">
 (Beta Technologies,
 </a>
 
 <a href="https://sp-edge.com/updates/31653">
 Archer Aviation,
 </a>
 
 <a href="https://sp-edge.com/updates/31348">
 Vertical Aerospace,
 </a>
 and 
 <a href="https://sp-edge.com/updates/33632">
 EHang)
 </a>
 with notable progress in the US.&nbsp;
 
 </li>
 </ul>
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Outlook
 
 <ul>
 <li>
 
 The autonomous vehicle and eVTOL aircraft industries progressed toward commercialization, backed by regulatory support and consistent product launches:
 With increasing regulatory support, more states are approving autonomous vehicle technology and issuing testing and commercialization approvals for autonomous vehicles and eVTOL aircraft, signaling a promising future for these industries. Regular product testing by companies like 
 <a href="https://sp-edge.com/updates/32674">
 Waymo
 </a>
 and 
 <a href="https://sp-edge.com/updates/33794">
 Cruise
 </a>
 and new launches from 
 <a href="https://sp-edge.com/updates/31213">
 May Mobility
 </a>
 and 
 <a href="https://sp-edge.com/updates/32228">
 Beep
 </a>
 are expected to continue. Infrastructure development for eVTOLs (e.g., 
 <a href="https://sp-edge.com/updates/31929">
 Lilium,
 </a>
 
 <a href="https://sp-edge.com/updates/31013">
 EHang,
 </a>
 and 
 <a href="https://sp-edge.com/updates/31897">
 Eve Air Mobility)
 </a>
 and EVs will further drive growth in both eVTOL and autonomous vehicle sectors.
 
 </li>
 <li>
 
 The development of EV charging infrastructure and batteries is expected to continue as key challenges persist:
 Incompatible chargers, varying speeds, and complex payment systems make public EV charging difficult, while limited fast chargers and technical issues further 
 <a href="https://edition.cnn.com/2023/11/04/business/why-ev-charging-is-still-such-a-pain/index.html">
 hinder the user experience.
 </a>
 To accelerate EV adoption, charging infrastructure needs to become more standardized and widely accessible. Recent partnerships between infrastructure providers and manufacturers (e.g., 
 <a href="https://sp-edge.com/updates/33747">
 GM,
 </a>
 
 <a href="https://sp-edge.com/updates/32683">
 Toyota,
 </a>
 
 <a href="https://sp-edge.com/updates/31836">
 Mercedes-Benz,
 </a>
 
 <a href="https://press.siemens.com/global/en/pressrelease/siemens-awarded-framework-agreement-eon-supply-charging-systems-and-services">
 E.ON,
 </a>
 
 <a href="https://www.just-auto.com/news/vinfast-partners-with-bosch-over-eu-charging-points/">
 Vinfast,
 </a>
 and 
 <a href="https://sp-edge.com/updates/29362">
 NIO)
 </a>
 reflect this trend. Additionally, 
 <a href="https://www.cnbc.com/2023/09/19/ev-charging-industry-improvements.html#:~:text=A%20Consumer%20Reports%20study%20in%20April%20found%20that%20%E2%80%9Ccharging%20logistics%E2%80%9D%20and%20%E2%80%9Cpurchase%20price%E2%80%9D%20were%20the%20two%20biggest%20factors%20holding%20consumers%20back.">
 high EV prices
 </a>
 remain a barrier, which could be alleviated through innovations in 
 <a href="https://sp-edge.com/updates/32684">
 low-cost battery development.
 </a>
 
 </li>
 <li>
 
 Smart Mobility Information to see growing demand for improved urban mobility
 : The
 Smart Mobility Information
 industry is poised for significant advancements, emphasizing improved public transit (e.g., 
 <a href="https://sp-edge.com/updates/32616">
 Via
 </a>
 and 
 <a href="https://sp-edge.com/updates/31295">
 Volvo Buses)
 </a>
 and parking efficiency 
 <a href="https://sp-edge.com/updates/32850">
 (Flash,
 </a>
 
 <a href="https://sp-edge.com/updates/31920">
 Mobile Smart City,
 </a>
 and 
 <a href="https://sp-edge.com/updates/33671">
 ParkMobile).
 </a>
 These developments highlight a future where better-advanced mobility solutions contribute to safer and more efficient transportation networks.
 
 </li>
 </ul>
 </li>
 </ul>
 
 
</div>

Passenger Mobility Tech (Q3 2024): Funding picks up with two landmark deals; autonomous vehicle development and boosting EV ecosystem drive activities

<div>
 <ul>
 <li>
 
 Funding in the GenAI ecosystem normalized to USD 5.4 billion across 60 rounds (but down 72% from the record-high USD 19.6 billion in Q2 2024)
 
 </li>
 <li>
 
 California Governor Newsom signed several GenAI bills, and the EU AI Act came into force
 
 </li>
 <li>
 
 Increasing interest in 3D and video models while open-source models continued to evolve to compete with proprietary models
 
 </li>
 </ul>
 
 
</div>

<div>
 <h1>
 Key takeaways
 </h1>
 
 Regulations
 
 <ul>
 <li>
 
 California Governor Newsom approved 
 <a href="https://techcrunch.com/2024/09/29/here-is-whats-illegal-under-californias-18-and-counting-new-ai-laws/">
 several
 </a>
 AI bills
 , including requirements for Foundation Model (FM) providers to disclose training data details by 2026, extending privacy laws to GenAI systems, and mandating AI-generated content disclosures. In addition, the US Department of Commerce 
 <a href="https://sp-edge.com/updates/32062">
 published
 </a>
 guidance on measuring and managing GenAI risks and collaborating globally on AI standards. This sentiment is echoed in a recent 
 <a href="https://www.techuk.org/resource/governing-ai-for-humanity-un-report-proposes-global-framework-for-ai-oversight.html">
 UN report
 </a>
 proposing a global AI governance framework.
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 The European AI Act became 
 <a href="https://sp-edge.com/updates/32259">
 enforceable
 </a>
 from August onwards
 , aiming to govern AI development. Furthermore, the Commission launched a consultation on a Code of Practice for providers of general-purpose AI (GPAI) models to address transparency, copyright-related rules, and risk management. Other AI governance frameworks currently being formed (such as in the UK) will likely be based on the EU AI Act.
 
 </li>
 </ul>
 
 Funding
 
 <ul>
 <li>
 
 Sixty GenAI ecosystem startups raised USD 5.4 billion, 
 broadly in line with the average quarterly run rate from Q3 2023 to Q1 2024.
 This was still a drop from the record-breaking Q2 2024 (USD 19.6 billion), inflated by multi-billion-dollar rounds from 
 <a href="https://sp-edge.com/companies/1017660">
 CoreWeave
 </a>
 and 
 <a href="https://sp-edge.com/companies/3060691">
 xAI
 </a>
 . The 
 <a href="https://sp-edge.com/updates/33319">
 highlight
 </a>
 in Q3 was Illya Sutskever&rsquo;s startup, 
 <a href="https://sp-edge.com/companies/3640944">
 Safe Superintelligence
 </a>
 , raising USD 1 billion&mdash;a rare feat for a company formed four months ago that is yet in the pre-seed stage.&nbsp;
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Other notable large funding rounds for the quarter included China-based LLM developer 
 <a href="https://sp-edge.com/companies/3253537">
 Baichuan Intelligence
 </a>
 (
 <a href="https://sp-edge.com/updates/31978">
 USD 691 million
 </a>
 ), chip developer 
 <a href="https://sp-edge.com/companies/477143">
 Groq
 </a>
 (
 <a href="https://sp-edge.com/updates/32357">
 USD 640 million
 </a>
 ), and Canadian LLM developer 
 <a href="https://sp-edge.com/companies/1384872">
 Cohere
 </a>
 (
 <a href="https://sp-edge.com/updates/31801">
 USD 500 million
 </a>
 ).
 
 </li>
 </ul>
 
 
 
 
 Product updates
 
 <ul>
 <li>
 
 This quarter witnessed 
 significant open-source model launches
 from companies like Mistral AI, Alibaba, and Meta. While their previous focus was on LLMs, several multimodel (
 <a href="https://sp-edge.com/updates/33518">
 Pixtral 12 billion
 </a>
 ) and fine-tuned models (
 <a href="https://sp-edge.com/updates/31619">
 Codestral Mamba and Mathstral
 </a>
 ) were introduced by Mistral AI. It also launched an LLM (
 <a href="https://sp-edge.com/updates/31944">
 Mistral Large 2
 </a>
 ) with 84% pre-trained accuracy. Similarly, Meta unveiled its largest open-source model (
 <a href="https://sp-edge.com/updates/31910">
 Llama 3.1
 </a>
 with 405 billion parameters) to compete with closed models like GPT-4o. This represents a positive shift toward democratizing AI technology, facilitating greater accessibility for developers and businesses.&nbsp;
 
 </li>
 <li>
 
 In addition, Q3 also saw several new model launches
 , including LLM launches such as OpenAI&rsquo;s 
 <a href="https://sp-edge.com/updates/33550">
 o1
 </a>
 , Zhipu AI's
 <a href="https://sp-edge.com/updates/33042">
 
 GLM-4-Flash
 </a>
 , AI21's
 <a href="https://sp-edge.com/updates/32879">
 
 Jamba 1.5
 </a>
 , and Fujitsu&rsquo;s Japanese model,
 <a href="https://www.fujitsu.com/global/about/resources/news/press-releases/2024/0930-01.html">
 
 Takane
 </a>
 . Fine-tuned model launches were 
 tailored for specific domains
 , such as 
 <a href="https://sp-edge.com/updates/32764">
 NVIDIA&rsquo;s StormCast
 </a>
 and
 <a href="https://sp-edge.com/updates/33969">
 
 IBM&rsquo;s Prithvi WxC for weather prediction
 </a>
 ,
 <a href="https://sp-edge.com/updates/32340">
 
 Meta&rsquo;s SAM 2
 </a>
 for object segmentation, and
 <a href="https://sp-edge.com/updates/31531">
 
 Microsoft&rsquo;s SpreadsheetLLM
 </a>
 for spreadsheet analysis.&nbsp;
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Meta (
 <a href="https://sp-edge.com/updates/32504">
 VFusion3D
 </a>
 ) and Stability AI (
 <a href="https://sp-edge.com/updates/32260">
 Stable Fast 3D
 </a>
 ) released 
 3D models,
 while 
 image and 3D tools
 were prominent within applications. Additionally, 
 <a href="https://sp-edge.com/updates/33674">
 Adobe
 </a>
 launched GenAI features for content personalization, 
 <a href="https://sp-edge.com/updates/32837">
 Midjourney
 </a>
 introduced a unified AI image editor; 
 <a href="https://sp-edge.com/updates/32985">
 Nextech3D
 </a>
 enhanced 3D model visualization capabilities, and Meta launched
 <a href="https://sp-edge.com/updates/31081">
 its 
 Meta 3D Gen
 </a>
 text-to-3D generator. This will likely address content creators&rsquo; growing interest in experimenting with 3D assets for diverse applications, from video games to product design and visualization.
 
 </li>
 <li>
 
 GenAI 
 application developers enhanced their products 
 with new underlying models. Video creation tool providers 
 <a href="https://sp-edge.com/updates/32219">
 Runway
 </a>
 ,
 <a href="https://sp-edge.com/updates/32794">
 
 Luma AI
 </a>
 ,
 <a href="https://sp-edge.com/updates/32793">
 
 Hotshot
 </a>
 , and
 <a href="https://sp-edge.com/updates/31601">
 
 Haiper
 </a>
 introduced upgraded video capabilities through new models, while 
 <a href="https://sp-edge.com/updates/33122">
 Google
 </a>
 and xAI enhanced the image-generation abilities of their AI assistants with the launch of Imagen 3 and 
 <a href="https://sp-edge.com/updates/32644">
 Grok-2
 </a>
 , respectively. Additionally, 
 <a href="https://sp-edge.com/updates/33598">
 OpenAI
 </a>
 improved its AI assistant's complex problem-solving capabilities with the &ldquo;o1&rdquo; series models. These developments underscore the focus of application developers to consistently improve their offerings.&nbsp;
 
 </li>
 <li>
 
 During the quarter, 
 cloud solutions and hardware development dominated in infrastructure, 
 with
 
 <a href="https://sp-edge.com/updates/33915">
 Together AI
 </a>
 and
 <a href="https://sp-edge.com/updates/33402">
 
 HPE
 </a>
 introducing private cloud offerings to enhance AI deployment. 
 <a href="https://sp-edge.com/updates/33468">
 Zilliz Cloud
 </a>
 and 
 <a href="https://sp-edge.com/updates/32966">
 Pinecone
 </a>
 introduced features for scaling GenAI workloads, while 
 <a href="https://sp-edge.com/updates/32096">
 Lambda
 </a>
 and
 <a href="https://sp-edge.com/updates/31564">
 
 Arcee AI
 </a>
 focused on model training platforms. Regarding hardware development, 
 <a href="https://sp-edge.com/updates/32935">
 IBM&rsquo;s
 </a>
 Spyre AI accelerator chip and
 <a href="https://sp-edge.com/updates/32302">
 
 Supermicro
 </a>
 &rsquo;s SuperCluster for NVIDIA Omniverse could scale AI workloads. 
 <a href="https://sp-edge.com/updates/34037">
 Intel&rsquo;s
 </a>
 Xeon 6 CPU with 2x the performance of its predecessor, Gaudi 3 AI GPU designed for large-scale GenAI, and 
 <a href="https://sp-edge.com/updates/32934">
 FuriosaAI&rsquo;s
 </a>
 RNGD AI inference chip would improve processing capabilities and deploy complex AI models, leading to faster innovation cycles.
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Other notable updates included 
 <a href="https://sp-edge.com/updates/33562">
 Lenovo
 </a>
 launching GPU-as-a-service (GPUaaS) to improve AI accessibility, Hugging Face launching inference-as-a-service for AI deployment and expanding its capabilities into LLMOps solutions, Microsoft launching MInference for faster LLM processing, and Amazon SageMaker also adding new capabilities for faster auto-scaling of AI models.
 
 </li>
 </ul>
 
 
 
 Partnerships
 
 <ul>
 <li>
 
 Notable trends in Q3 included 1) jointly 
 developing new models
 (
 <a href="https://sp-edge.com/updates/31742">
 Mistral AI
 </a>
 and NVIDIA;
 <a href="https://sp-edge.com/updates/31590">
 
 Cohere
 </a>
 and Fujitsu); 2) offering 
 integrated hardware solutions
 (
 <a href="https://sp-edge.com/updates/33513">
 Oracle
 </a>
 and NVIDIA); 3) 
 accessing hardware for model optimization 
 (
 <a href="https://sp-edge.com/updates/33263">
 Sakana AI
 </a>
 ,
 <a href="https://www.cnbc.com/2024/07/23/meta-debuts-newest-llama-ai-model-with-help-from-nvidia-and-others.html">
 
 Meta
 </a>
 , and
 <a href="https://sp-edge.com/updates/32824">
 
 Google Cloud
 </a>
 partnered with NVIDIA); and 4) offering 
 integrated processing and cloud solutions
 (
 <a href="https://sp-edge.com/updates/32462">
 Oracle
 </a>
 and
 <a href="https://sp-edge.com/updates/31839">
 
 Inspur
 </a>
 partnered with NVIDIA;
 <a href="https://sp-edge.com/updates/33800">
 
 Microsoft
 </a>
 and
 <a href="https://digitalterminal.in/tech-companies/intel-and-ibm-partner-to-enhance-cost-performance-representing-ai-innovation">
 
 Intel
 </a>
 partnered with IBM).
 
 </li>
 <li>
 
 The trend of 
 integrating GenAI tools into devices
 continued this quarter, too, as&nbsp; OpenAI partnered with 
 <a href="https://sp-edge.com/updates/31530">
 Wearable Device
 </a>
 s to integrate ChatGPT into Apple Watch through the Mudra band and 
 <a href="https://sp-edge.com/updates/32080">
 Synchron
 </a>
 integrated ChatGPT into its brain-computer interface.&nbsp;
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 GenAI players also reported 
 partnerships with consultancy firms to accelerate adoption
 . Notable partnerships included 
 <a href="https://sp-edge.com/updates/32543">
 Anthropic
 </a>
 &rsquo;s partnership with Deloitte and Accenture&rsquo;s partnerships with
 <a href="https://sp-edge.com/updates/31910">
 
 Meta
 </a>
 ,
 <a href="https://press.aboutamazon.com/2024/8/accenture-and-aws-collaborate-to-help-organizations-scale-adoption-of-ai-responsibly">
 
 Amazon
 </a>
 , and
 <a href="https://sp-edge.com/updates/32968">
 
 NVIDIA
 </a>
 , which suggest a strategic shift toward developing specialized solutions that address the unique needs of various industries.&nbsp;
 
 </li>
 </ul>
 
 
 
 M&amp;A
 
 <ul>
 <li>
 
 This quarter saw four M&amp;A deals in the GenAI hardware development space, with AMD reporting two acquisitions: 1)
 <a href="https://sp-edge.com/updates/32746">
 
 ZT Systems
 </a>
 and
 <a href="https://sp-edge.com/updates/31378">
 2) 
 Silo.AI
 </a>
 to improve its infrastructure solutions. NVIDIA also reported two acquisitions:
 <a href="https://sp-edge.com/updates/31761">
 1) 
 Brev.dev
 </a>
 to expand the capabilities of its DGX Cloud service and 2) Octo AI to expand its efforts in machine-learning compilers and cloud infrastructure for AI.
 
 </li>
 </ul>
 
 
 
 
 Outlook
 
 
 
 <ul>
 <li>
 
 Emergence of &ldquo;as-a-service&rdquo; infrastructure:
 Developments by 
 <a href="https://sp-edge.com/updates/33562">
 Lenovo
 </a>
 and 
 <a href="https://sp-edge.com/updates/32056">
 Hugging Face
 </a>
 and partnerships between major players like 
 <a href="https://sp-edge.com/updates/32824">
 Google and NVIDIA
 </a>
 indicate a shift toward 
 &ldquo;as-a-service&rdquo; infrastructure.
 Offering scalable, on-demand access to GPU resources and AI capabilities can lower the barriers to entry for businesses and likely enable companies to integrate advanced AI solutions without substantial upfront investments. As a result, we can expect a surge in AI-driven applications across various sectors, from creative industries to enterprise solutions, enhancing productivity and operational efficiency. Moreover, the flexibility of as-a-service offerings allows organizations to adapt quickly to changing market demands and technological advancements.&nbsp;
 
 </li>
 <li>
 
 GenAI for web search:
 The recent integration of GenAI into search engines signals a transformative shift in how users access information online, as seen with initiatives like 
 <a href="https://sp-edge.com/updates/32043">
 Microsoft
 </a>
 launching AI-powered generative search in Bing and 
 <a href="https://sp-edge.com/updates/31987">
 OpenAI
 </a>
 &rsquo;s temporary prototype of AI-powered search engine &ldquo;SearchGPT&rdquo; this quarter, following Google&rsquo;s launch of the &quot;Search Generative Experience&quot; feature last year. By leveraging advanced algorithms, search engines better understand user intent, predict queries, and deliver tailored results that align closely with individual preferences. While the potential for misinformation and hallucinations in the current GenAI systems may pose challenges, fully realized solutions could improve user experiences as the search process becomes less about sifting through links and more about receiving direct, relevant answers.&nbsp;
 
 </li>
 </ul>
 
 
 <ul>
 <li>
 
 Integrating hardware with cloud solutions:
 As GenAI models become even larger and more complex, cloud infrastructure plays an increasingly crucial role. In previous quarters, there was a strong focus on developing efficient, low-cost AI hardware solutions. Now, companies are moving toward integrating hardware with cloud solutions, as demonstrated by 
 <a href="https://sp-edge.com/updates/32824">
 Google Cloud Run
 </a>
 adding NVIDIA GPU support for serverless AI inference and 
 <a href="https://sp-edge.com/updates/34134">
 Oracle Cloud Infrastructure
 </a>
 integrating AMD Instinct MI300X accelerators with ROCm open software for advanced AI workloads. With this, organizations can expect improved efficiency in processing large datasets, which is crucial for training complex AI models. Innovations in AI-specific cloud services, such as managed AI platforms and AI accelerators, are expected to further streamline AI development, reducing barriers to entry and enabling even broader applications across industries.
 
 </li>
 </ul>
 
 
</div>

GenAI ecosystem (Q3 2024): Funding normalizes; adoption grows across industries

<div>
 <ul>
 <li>
 
 Funding volumes fall, despite DIgital Twin seeing a recovery in investments
 
 </li>
 <li>
 
 Partnerships and product updates drive activity, primarily led by metal AM developments and continued sales partnerships. 
 
 </li>
 <li>
 
 Military funding and adoption continues to drive advanced manufacturing technology industries
 
 </li>
 </ul>
 
 
</div>

<div>
 <ul>
 <li>
 
 Funding
 
 <ul>
 <li>
 
 Q3 volumes fell despite an uptick in DT investments: 
 The sector&rsquo;s overall funding fell 25.7% YoY to USD 382 million owing to a sharp decline in Mining Tech (down 98.9% YoY), Smart Factory (down 52.7% YoY), and AM (down 22.0% YoY) funding. Lower funding could be reflective of a slowdown in the industry in a quarter that saw 
 <a href="https://sp-edge.com/updates/32768">
 layoffs
 </a>
 , 
 <a href="https://sp-edge.com/updates/31162">
 bankruptcies
 </a>
 , and industry consolidation. However, DT investments rebounded as funding rose 20x YoY, led by 
 <a href="https://sp-edge.com/updates/31611">
 Hayden AI
 </a>
 &rsquo;s and 
 <a href="https://sp-edge.com/updates/32371">
 Seeq
 </a>
 &rsquo;s growth funding rounds to invest in product development and growth initiatives.&nbsp;
 
 </li>
 </ul>
 </li>
 <li>
 
 Partnerships&nbsp;
 
 <ul>
 <li>
 
 Metal AM, AI, and improvements in robotics remained central themes for partnerships; adoption of technology in healthcare continued: 
 Similar to the last quarter, 
 AM
 partnerships were the most prominent with 1) metal-AM-related developments (
 <a href="https://sp-edge.com/updates/31297">
 end-to-end solutions
 </a>
 and 
 <a href="https://sp-edge.com/updates/33521">
 improvements to elements 
 </a>
 of the metal AM manufacturing process), 2) continued development of AM solutions for the aerospace and defense and healthcare sectors, and 3) sales partnerships to expand global footprint persisting.&nbsp;
 
 </li>
 <li>
 
 New partnership themes emerged in DT and Smart Factory:
 These included DT
 
 partnerships on urban planning and transportation (
 <a href="https://sp-edge.com/updates/31877">
 Flow Labs
 </a>
 and 
 <a href="https://sp-edge.com/updates/34070">
 VIZZIO
 </a>
 launching traffic management and smart city solutions, respectively) and Smart Factory partnerships to integrate robotic software to improve automation (
 <a href="https://www.automate.org/robotics/news/robodk-and-comau-partner-to-offer-improved-robotic-simulation-and-offline-programming#:~:text=RoboDK%2C%20a%20pioneer,more%20advanced.">
 Comau
 </a>
 improving robotic simulations). Continuing trends observed included 1) 
 <a href="https://sp-edge.com/insights/31282#:~:text=We%20also%20saw%20product,latter%E2%80%99s%20manufacturing%20software.">
 DT developments in healthcare
 </a>
 , 2) 
 <a href="https://sp-edge.com/insights/31282#:~:text=Meanwhile%2C%20Microsoft%20partnered%20with%20Hexagon%20to%20integrate%20GenAI%20into%20the%20latter%E2%80%99s%20manufacturing%20software.%20The%20companies%20aimed%20to%20offer%20DTs%20that%20leverage%20Azure%20Compute%20for%20simulations%20that%20draw%20on%20Hexagon%E2%80%99s%20data%20capture%20and%20information%20without%20complex%20integrations.%C2%A0">
 GenAI-based DT
 </a>
 improvements, 3) DT adoption in 
 <a href="https://sp-edge.com/insights/28321#:~:text=Meanwhile%2C%20the%20energy%20sector%20used%20DTs%20to%3B%201)%20Improve%20product%20engineering%20and%20simulation%20(Rejool%20partnering%20with%20Siemens)%2C%20and%202)%20Gain%20better%20insights%20into%20physical%20facilities%20in%20floating%2C%20production%2C%20storage%2C%20and%20offloading%20(FPSO)%20vessels%20(Aize%20partnering%20with%20ExxonMobil%20Guyana%20and%20SBM%20Offshore).">
 oil and gas
 </a>
 , and 4) incumbents 
 <a href="https://sp-edge.com/insights/31282#:~:text=Incumbents%20collaborated%20to%20deliver%20AI%2Dbased%20solutions%2C%20driving%20Smart%20Factory%20partnerships">
 launching AI-based
 </a>
 smart factory solutions.&nbsp;&nbsp;
 
 </li>
 </ul>
 </li>
 <li>
 
 Product updates
 
 <ul>
 <li>
 
 AM drove product updates; design and post-processing solutions were launched along with new materials and printers: 
 3D print volume, size, and speed, together with new print materials, 
 <a href="https://sp-edge.com/insights/31282#:~:text=Product%20updates%20were%20driven%20by%20the%20AM%20industry%2C%20as%20several%20players%20continued%20to%20launch%20new%20materials%20and%20printers">
 continued to be the focus
 </a>
 this quarter. 
 <a href="https://sp-edge.com/updates/33907">
 Rapid Fusion
 </a>
 launched a system for faster production of large parts, 
 <a href="https://sp-edge.com/updates/32997">
 Markforged 
 </a>
 offered a KIT for faster printing and larger print volumes, 
 <a href="https://sp-edge.com/updates/31558">
 Fugo Precision offered a printer
 </a>
 that delivers 10x faster throughput, while 
 <a href="https://sp-edge.com/updates/33439">
 6K Additive
 </a>
 expanded its metal powder portfolio and 
 <a href="https://sp-edge.com/companies/71476">
 Formlabs
 </a>
 launched a dental and clear cast resin. We also saw several developments targeting design and post-processing elements, building on 
 <a href="https://sp-edge.com/insights/31282#:~:text=In%20addition%20to%20new%20materials%20and%20printers%2C%20AM%20product%20developments%20were%20also%20directed%20at%20enabling%20AM%20adoption%20through%20better%20post%2Dprocessing%20solutions%20(DyeMansion)%2C%20enhanced%20support%20(AddUp)%2C%20and%20end%2Dproduct%20customization%20(Stratasys).%C2%A0">
 last quarter
 </a>
 &rsquo;s momentum. Meanwhile, 
 DT
 updates were driven by maintenance solutions being launched for various sectors, while robotics-related developments drove 
 Smart Factory
 updates.&nbsp;
 
 </li>
 </ul>
 </li>
 <li>
 
 M&amp;As
 
 <ul>
 <li>
 
 Horizontal integrations drove M&amp;As: 
 We counted six major M&amp;A activities in the Advanced Manufacturing space during the quarter, primarily driven by 
 AM 
 (four activities), with acquisitions used to expand 3D printer offerings and enhance 3D printing service capacity. Meanwhile, 
 Smart Factory 
 continued the horizontal integration trend from 
 <a href="https://sp-edge.com/insights/31282#:~:text=Smart%20Factory%20acquisitions%20driven%20by%20incumbents%20(Hitachi%20and%20Hexagon)%20looking%20to%20enhance%20existing%20smart%20factory%20solutions%20through%20horizontal%20integration.">
 last quarter
 </a>
 with an acquisition to expand its customer base and market share. 
 DT
 also saw just one activity, where Bentley Systems acquired Cesium to enhance its building design and monitoring DT platform. This was a notable change from the 
 <a href="https://sp-edge.com/insights/31282#:~:text=There%20were%20two%20notable%20acquisitions%20in%20the%20DT%20space%2C%20where%20incumbent%20businesses%20acquired%20disruptors%20to%20embed%20DT%20into%20their%20offerings">
 last quarter
 </a>
 where DT acquisitions were limited to the technology being leveraged by other industries.&nbsp;
 
 </li>
 </ul>
 </li>
 <li>
 
 Regulations
 
 <ul>
 <li>
 
 Military funding and adoption boosts advanced manufacturing tech:
 Government funding for Advanced Manufacturing industries continued; most notably, the US Air Force awarded contracts worth USD 975 million to develop advanced manufacturing technologies, while the Department of Energy engaged in multiple funding programs for smart factory tech. The 
 AM
 industry also benefited from the continuation of two key trends: 1) 
 <a href="https://sp-edge.com/insights/31282#:~:text=The%20US%20Army,time%2C%20and%20cost">
 partnerships
 </a>
 with the military for AM adoption and 2) 
 <a href="https://sp-edge.com/updates/13593">
 regulatory
 </a>
 approval for solutions in healthcare. However, tightening export regulations for military-related AM solutions could hinder the expansion of the industry since most defense-focused developments in AM are restricted to the US.&nbsp;&nbsp;
 
 </li>
 </ul>
 </li>
 <li>
 
 Outlook&nbsp;
 
 <ul>
 <li>
 
 AI and GenAI to continue disrupting advanced manufacturing, primarily in Smart Factory: 
 Smart Factory has seen a steady flow of AI-based developments through partnerships and product updates. Recently, we saw AI commonly leveraged for 
 <a href="https://sp-edge.com/insights/28321#:~:text=Embedded%20AI%20in%20Smart%20Factory%20included%20a%20business%20intelligence%20engine%20for%20advanced%20analytics%20backed%20by%20AI/ML%20tools%20(Locus%20Robotics)%20and%20a%20new%20robot%20piece%2Dpicking%20system%20with%20updated%20AI%2Dbased%20software%20algorithms%20(RightHand%20Robotics)">
 analytics
 </a>
 , 
 <a href="https://sp-edge.com/updates/30189">
 advanced robotics
 </a>
 , 
 <a href="https://sp-edge.com/updates/34086">
 preventive maintenance
 </a>
 , and 
 <a href="https://www.abc4.com/business/press-releases/ein-presswire/704138099/instrumental-joins-nvidia-metropolis-to-enable-fully-automated-defect-detection-for-complex-electronics-assembly/">
 defect detection
 </a>
 . Meanwhile, GenAI has been used to 
 <a href="https://sp-edge.com/insights/25464#:~:text=Meanwhile%2C%20GenAI%20continues%20to%20make%20its%20way%20into%20the%20Smart%20Factory%20space%2C%20with%20Microsoft%20entering%20into%20partnerships%20with%20Siemens%20and%20Rockwell%20Automation%20to%20develop%20solutions%20for%20users%20to%20generate%2C%20optimize%2C%20and%20debug%20automation%20code%20through%20natural%20language%20interactions.">
 help users develop automation code using natural languages
 </a>
 , 
 <a href="https://sp-edge.com/updates/19874">
 generate insights
 </a>
 from operational data, 
 <a href="https://sp-edge.com/updates/21285">
 create collaborative robots
 </a>
 , and for 
 <a href="https://sp-edge.com/updates/26398">
 predictive maintenance
 </a>
 . Although GenAI has been more pronounced in Smart Factory, we have also seen it make its way to DT (to create a 
 <a href="https://sp-edge.com/insights/28321#:~:text=External%20AI%20solutions,room%20(Cognite).">
 more immersive DT experience
 </a>
 , 
 <a href="https://sp-edge.com/insights/31282#:~:text=Meanwhile%2C%20Microsoft%20partnered%20with%20Hexagon%20to%20integrate%20GenAI%20into%20the%20latter%E2%80%99s%20manufacturing%20software.%20The%20companies%20aimed%20to%20offer%20DTs%20that%20leverage%20Azure%20Compute%20for%20simulations%20that%20draw%20on%20Hexagon%E2%80%99s%20data%20capture%20and%20information%20without%20complex%20integrations.">
 improve simulations
 </a>
 , and for remote operations controls) and AM (to offer 
 <a href="https://sp-edge.com/insights/21902#:~:text=GenAI%20has%20made%20its%20way%20into%20several%20industries%2C%20and%20advanced%20manufacturing%20is%20no%20exception.">
 advanced design capabilities
 </a>
 and greater user support). Accordingly, we are likely to see similar developments going forward, as companies partner and enhance their products to realize the full potential of AI.
 
 </li>
 <li>
 
 AM developments to span across the value chain, with a focus on metal AM: 
 We are likely to see AM product developments, partnerships, and M&amp;A continue to span across the value chain rather than being only focused on production improvements, since design and post-processing also remain challenges to AM adoption. Meanwhile, metal-AM-related developments remain a key focus as metal usage in AM can be hindered by manufacturing 
 <a href="https://www.metal-am.com/articles/obstacles-to-the-adoption-of-metal-am-by-small-and-medium-sized-enterprises/">
 speed, cost, and scalability
 </a>
 . Notably metal remains important in several industries, as steel was reportedly 
 <a href="https://materials.imdea.org/what-is-the-most-used-material-in-the-world-and-the-least-researched/#:~:text=Steel%20is%20the%20second%20most%20consumed%20raw%20material%20globally%20after%20oil">
 the second-most consumed raw material in the world
 </a>
 in 2023.
 
 </li>
 <li>
 
 AM demand in defense to rise, supported by continued funding from military organizations:
 US government organizations have been investing in defense-based AM solutions consistently in recent times. For instance, US defense organizations have funded multiple AM projects since 2023. Moreover, during that period, disruptors such as 
 <a href="https://sp-edge.com/updates/28007">
 JuggerBot 3D
 </a>
 , 
 <a href="https://sp-edge.com/updates/24858">
 6K Additive
 </a>
 , and 
 <a href="https://sp-edge.com/updates/23334">
 Materion Corp
 </a>
 , among others, received funding from military-affiliated organizations. Meanwhile, several companies (such as 
 <a href="https://www.3yourmind.com/news/u.s.-army-awards-3yourmind-contract-for-additive-manufacturing-part-identification?utm_campaign=Defense%20Email%20Campaign%202023&utm_medium=email&_hsenc=p2ANqtz-8SA3UyvJCYOS5GCPK_htqR8YxhWkuLE0YelI4KEv-aHBIqHfGjsnVwby1FLCwXN598c2nQRtAkr9GKONBdzbW-tNJH_SVmZ87bC-sPgW0tKrL_Vu0&_hsmi=306477728&utm_content=306477728&utm_source=hs_email">
 3YOURMIND
 </a>
 , 
 <a href="https://sp-edge.com/updates/17746">
 AML3D
 </a>
 , 
 <a href="https://sp-edge.com/updates/23779">
 NUBURU
 </a>
 , and 
 <a href="https://sp-edge.com/updates/24673">
 Velo3D
 </a>
 ) entered partnerships and/or met compliance requirements to offer defense-related AM solutions. Most recently, 
 <a href="https://sp-edge.com/companies/910307">
 SPEE3D
 </a>
 and 
 <a href="https://sp-edge.com/companies/1012815">
 AML3D
 </a>
 partnered with US military organizations to offer AM solutions that address supply chain-related constraints for military parts.&nbsp;
 
 </li>
 </ul>
 </li>
 </ul>
 
 
</div>

Advanced Manufacturing (Q3 2024): Product partnerships and updates drive activity amid funding decline

<div>
 
 Exploring startups from Y Combinator and Techstars&rsquo; 2023 and 2024 cohorts to identify promising emerging tech trends and innovations
 
</div>

<div>
 
 This report focuses on very early-stage startups emerging from Y Combinator and Techstars, two prominent startup accelerators, with an emphasis on the cohorts from 2023 and 2024. By examining these nascent ventures, we aim to uncover the most promising emerging tech trends and startups in incubation.
 
</div>

The next frontier: Emerging tech trends and startups from Y Combinator and Techstars

<div>
 <ul>
 <li>
 
 GenAI is proving to be a necessary catalyst for making sense of the explosion of healthcare data and reducing the burden on healthcare workers
 
 </li>
 <li>
 
 Big Tech is playing a key role in the development of GenAI solutions used by the healthcare industry
 
 </li>
 <li>
 
 Among the many healthcare use cases for GenAI, four applications are seeing the most activity
 
 </li>
 </ul>
 
 
</div>

<div>
 
 
 <ul>
 <li>
 
 GenAI is proving to be a necessary catalyst for making sense of the explosion of healthcare data and reducing the burden on healthcare workers
 
 </li>
 <li>
 
 Big Tech is playing a key role in the development of GenAI solutions used by the healthcare industry
 
 </li>
 <li>
 
 Among the many healthcare use cases for GenAI, four applications are seeing the most activity
 
 </li>
 </ul>
 
 
</div>

Revolutionizing healthcare: The power of GenAI

<div>
 
 This report highlights the policies of the Democratic Party, examining their implications for key industries. 
 
</div>

<div>
 
 The Democratic Party's policies focus on promoting sustainability through a shift to clean energy and environmental justice, advancing the US as a leader in emerging technologies while safeguarding privacy and ethics, and improving healthcare access and affordability. It also aims to strengthen the economy by investing in housing, education, and workforce training, ensuring economic stability and opportunities for all Americans in a dynamic global market.
 
 <hr/>
 
 
</div>

2024 US elections impact on emerging industries: Winners and losers of a Democratic presidency

Reinforcing recycling, rerouting refuse, and reducing wasteflows

Waste Recovery & Management Tech

<div>
 
 This report covers the shift to a more circular economy-based approach, away from a linear approach, for consumer electronics. Focusing on repair, refurbish, and recycle elements of sustainable e-waste management.
 
</div>

<div>
 <ul>
 <li>
 
 Integrating circular models to reduce e-waste:
 Businesses are increasingly aligning with the circular economy, especially in the consumer electronics space where consumers are demanding affordable alternatives to repair or replace broken devices.
 
 </li>
 <li>
 
 Limitations against repair hamper consumers&rsquo; ability to repair their devices:
 Restricted access to spare parts and information as well as design that discourage repair have led to most consumers, including those who wished to repair their devices, to replace their device instead.
 
 </li>
 <li>
 
 Environmentally conscious consumer demand and demand for affordable alternative is on the rise: 
 Comparatively lower prices are prompting consumers to opt for higher quality refurbished devices compared to lower quality new devices. Refurbished devices also offer significant emissions savings since most emissions are generated during production. Recycling can also reduce the reliance on raw material imports.
 
 </li>
 <li>
 
 The rise of the right to repair:
 Legislative support for the right to repair in the EU and the US is forcing manufacturers to make devices more repairable while supplying spare parts and repair information. The expansion right to repair can also expand the repair value chain and make the electronic repair market more competitive.
 
 </li>
 <li>
 
 Market projections for the circular electronics sector:
 The overall market is expected to grow with recycling leading the growth. Geographically, Europe and Mainland China are likely to be the leading locales for recycled electronics. Growing affordability of high-end devices will also be a catalyst for growth withing the refurbished electronics space. Major consumer electronics brands are also positioning themselves within the repair space either directly or through collaborations.
 
 </li>
 </ul>
 
 
</div>

Sustainable E-Waste Management

Giving creators the power of content monetization and audience engagement.

Creator Economy

<div>
 
 A deep dive into Gumroad's financials, product, competitive environment, and market opportunities...
 
</div>

<div>
 <ul>
 <li>
 
 Sacra estimates that Gumroad reached USD 19 million in revenue in 2023, up 88% from USD 10 million in 2022. In early 2023, Gumroad's pricing change from a 3.5%&ndash;8.5% variable take rate to a flat 10% take rate on GMV doubled monthly revenue from USD 1.7 million to USD 9 million and flipped them from burning cash (negative USD 1 million in 2022) to generating USD 9 million in net profit for 2023.
 
 </li>
 <li>
 
 The company generates revenue with a 10% transaction fee per sale, with no monthly subscription, aligning with creators' variable sales. It also charges payment processing fees. Additional revenue streams include the Gumroad Discover feature, which boosts product visibility for a 30% fee, and in-app sales, which incur a 40% fee due to app store charges.
 
 </li>
 <li>
 
 Gumroad focuses on serving a broader audience. While platforms like Kajabi cater to bigger creators, Gumroad is built for the masses, serving as a simple product page and checkout tool, regardless of the creator's discovery methods (TikTok, YouTube, Instagram) or marketing tools (ConvertKit, Mailchimp).
 
 </li>
 <li>
 
 Gumroad&rsquo;s strategy is to grow GMV and boost the creator economy by improving the checkout process. Gumroad's role in monetization gives it three key growth levers: More interoperability, more conversions and more product.
 
 </li>
 </ul>
 
 
</div>

EDGE Insights