Quarterly RAAI Report
Transcript of Quarterly RAAI Report
D
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com
• 2021 Top Supply Chain Tech Trends & Capital Market
Drivers
• Select Transaction Highlights
• Supply Chain Tech M&A and Financing Activity
• Supply Chain Tech Publicly-Traded Company
Performance
• Upcoming Industry Conferences and Events
Supply Chain Tech Trends & Capital Market Drivers for 2021
Wholesale Shift in Customer Demand Requires Supply Chains to Rapidly Adopt Automation1
Prolonged periods of disrupted supply chains and
increased customer expectations for more
products, lower prices, and expedited shipping are
driving overwhelming demand for end-to-end
supply chain visibility and efficiency solutions.
While there has been an initial surge in in-person
consumer activity as pandemic restrictions lessened,
all signs point to pandemic trends continuing and
blurring the line between brick and mortar and e-
commerce. Offerings like buy online, pick up in-
store, grocery delivery and the evolving
microfulfillment (MFC) model will continue to grow
in popularity and become the new standard for
driving consumer behavior. In addition, the
infrastructure that was developed for work-from-
home will likely be utilized for years to come,
further reinforcing consumer behavior from the
COVID-19 pandemic as a driving force for
innovation and convenience.
As a result, resilience in the supply chain will be
crucial for companies looking to increase
throughput and enhance operational agility.
Emerging technologies will increasingly enable a
shift towards a connected ecosystem focused on
end-to-end solutions for suppliers, customers, and
shippers that manage inventory and product
volumes. Technology advancements throughout the
supply chain will be necessary to support e-
commerce and maintain the flow of goods-to-
customers while further improving customer
experience.
Estimated Annual Shipments of Industrial Robots
Worldwide
Future technology solutions will aim to reduce costs,
provide visibility to increase reaction time and
manage throughput.
The global supply chain will remain highly
fragmented and emerging technology companies are
rapidly trying to solve existing gaps, but currently
can often only solve one or a limited number of
problems (ie, warehouse automation). Over time
technology companies will need to create more
value for their solutions through partnerships and
ultimately combination with other complementary
market players.
Report Highlights
484
553
630
0
100
200
300
400
500
600
700
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
000’ of units
2
Sources: International Federation of Robotics, Cascadia Proprietary Information
D
Supply chain technology startups are emerging at an explosive rate across the globe to provide solutions for
existing companies dealing with sourcing fragmentation. For example, components for a single phone can be
sourced from China, Taiwan, and Korea which means shipping delays, missed shipments, customs delays, and
unanticipated downtimes that can create a domino effect. Companies need solutions that can automate
processes, enhance efficiency, provide visibility, and create robust analytics to increase supply chain resilience
and throughput.
In addition, most investors are developing
an investment framework focused on the
“three pillars” of core technologies, key
segments and winning business models.
In the short-term, tech-enabled companies
in trucking logistics and inventory
management are benefitting from investor
interest in the surge in e-commerce, and
over time we expect to see accelerating
growth in companies with more advanced
technologies in autonomy applications and
full-suite warehouse automation.
Representative Companies Emerging in the Supply Chain Tech Landscape
Asset Tracking & Management
7%
Augmented Reality
1%Autonomous Trucks &
Middle-mIle4%
Electric Trucks2%ERP &
Inventory Management
18%
Fleet Management
7%Marine, Rail & Port Logistics
4%Other>1%
Procurement & Sourcing
14%Supply Chain
Finance & Payments
7%
Sustainable Packaging
6%
Trucking Logistics
13%
Warehouse Automation
9%
Warehousing & Fulfillment8%
Sources: Pitchbook data – As of September 2021, Cascadia Proprietary Information
Supply Chain Tech Trends & Capital Market Drivers for 2021
Fragmentation in the Supply Chain Creates Opportunity for New Entrants2
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 3
Venture Capital Investments by Sub-Sector
D
0x
50x
100x
150x
200x
250x
300x
350x
400x
$0 $1 $2 $3 $4 $5 $6 $7 $8
Rising implementation costs and the need for flexibility will continue to drive demand for RaaS solutions.
Companies, particularly small and medium enterprises, increasingly need to scale and retool in response to
changing customer demands. Software advances, widescale adoption of S/XaaS revenue models and exponential
growth of cloud computing solutions have enhanced robotics providers’ ability to remotely update and manage
deployments post-integration. Further, customers of robotics companies are increasingly focused on RaaS due
to its flexibility, scalability, and lower cost of entry relative to traditional robotics. With many robotics solutions,
the cost associated with the implementation has proven to be a high bar of entry for small and medium sized
companies. With RaaS, these companies can enjoy fast returns on their capital by capturing the benefits of
robotics and automation without requiring a significant upfront expense. Perhaps most importantly, RaaS
facilitates robotics companies’ ability to rapidly scale and will enhance market penetration—simply put, the rent
vs buy flexibility is poised to transform automation adoption rates in the very near future.
Even companies that offer larger, more complex end-to-end automation solutions are turning to RaaS as a means
to accelerate growth. In the past, these companies have faced significant customization and integration
challenges. However, as an increasing number of systems are sold and more useful data is captured and
analyzed, robotics companies are better able to assess customers’ core needs. By developing “standard”
solutions that fit most needs, RaaS business models will become an effective means to further the sales of even
complex systems solutions.
From an investor perspective, given the above, RaaS is one of the key, if not the most important, capabilities
sought in robotics business models. The recent surge in S/Xaas has led to an explosion of subscription service
models as a key-value determinant in technology and robotics is no different. In fact, as seen below,
expectations of future annual recurring revenue (“ARR”) have the potential to drive multiples to unprecedented
levels and investors are rewarding businesses with (i) robust sales pipelines, (ii) actionable backlog, and (iii) an
achievable medium-term technology roadmap.
ARR and ARR Valuation Multiple - Robotics Hardware Companies
Robotics companies with lower levels of revenue
can have strikingly high ARR multiples.
Projections and expectations are driving
valuations for post-seed robotics companies
rather than current salesAR
RM
ult
iple
ARR ($ in Millions)
Supply Chain Tech Trends & Capital Market Drivers for 2021
Winning Business Models Will Incorporate RaaS3
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 4
Sources: Pitchbook data, Cascadia Proprietary Information, Deloitte, Silicon Valley Bank - The Future of Robotics
D
Sources: Movilitas, Gartner, Manhattan Associates
Visibility, analytics and real-time decision making are the new normal. While the concept of full supply chain
visibility is not new, rapid technological improvements are advancing visibility, capture and processing. That said,
the option of a supply chain without visibility is extinct and tech-enabled providers are now mission critical
components of the supply chain. The ramifications of this technology are already on display—according to
Movilitas, 90% of survey respondents with automation built into their supply chains reported that their market
share increased somewhat or significantly in the past year. Moreover, 97% reported their customer satisfaction
somewhat or significantly increased, compared to just 8% of those without substantial automation incorporated
into their supply chains. Those numbers reflect the impact and need for supply chain technology implementation,
the benefits to those who take advantage and the risks to those who don’t.
Increasing pressure to carefully manage the safety and availability of the workforce creates an urgent need for
solutions. Globally, supply chains are under incredible pressure as supply chain and transportation workers
become scarce due to difficult working conditions and, in some instances, poor treatment (eg, inability for ship
crews to disembark in foreign ports). While improved leave policies and more careful scheduling can alleviate
some of these issues in the short-term, longer-term there will be a significant gap in availability that only
automation will be able to fill. And, contrary to popular belief, according to the World Economic Forum
automation has the potential to create significantly more jobs than it replaces and allows for upskilling into other
necessary roles within the supply chain including IT management, supply chain technology and other technical
support roles. The transfer of roles and skills will create a more automation-centric workforce whose awareness
of and facility with technology will only serve to further increase adoption and effectiveness over time.
Worker safety is perhaps the most critical element of a durable operation and supply chain continuity. Robots
that can fill G2P roles in a warehouse environment can provide the twin benefit of social distancing and
enhanced throughput. In addition, automated solutions can reduce the risk of injury by removing workers from
dangerous environments, provide more rapid response to emergencies through real-time monitoring and allow
for more effective safety protocol management. Further benefits to employers include reduced costs, increased
efficiency and a better protected workforce.
Sources:
$38,000Average cost savings for each
worker injury avoided
22%Increase in profitability
41%Decrease in
quality/defect issues
48%Decrease in safety
Incidents
Growing Focus on Supply Chain Traceability & Visibility4
Supply Chain Workforce Management and Evolution5
Supply Chain Tech Trends & Capital Market Drivers for 2021
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 5
D
Sources: Pitchbook data – As of September 2021
Despite the slowdown in the capital markets in the first half of 2020, Q4 of 2020 demonstrated resilience and
increased velocity. This set the stage for M&A and financing activity, particularly in supply chain tech, in 2021.
Cascadia is predicting more consolidation in supply chain technology over the next 24 months fueled by a
combination of market demand, evolving pain-points, emerging market leaders developing scale, and a need for
end-to-end solutions.
Trends to Watch For
Technology Enhancement Through Acquisition: Differentiated businesses with technology specialization oruniqueness will receive premium valuations as larger companies look to scale operations and create holistic solutionsthrough acquisition, effectively bypassing the typical R&D cycle (ie, roadmap acceleration)
Labor Management: Scarcity of labor and evolving need for safe work environments will drive increased demand forsemi- and fully automated solutions in and out of warehouses
AI as Warehouse Enabler: AI will play a larger role in the warehouse environment as increasingly complex trafficpatterns and fleet management will require predictive analytics integrated into Warehouse Control Systems (WCS)
Systems Architecture: Increased integration of WCS, WES, and WMS into an overarching system will facilitate thedeployment of an end-to-end solution, enhance data visibility, and optimize inventory storage, movement, capacityutilization, and traffic control from receipt of goods to exit
Mid-Mile Focus For Software Solutions Here to Stay:
o Chokepoints in multi-modal mid-mile (particularly trucking) will draw significant attention to software focusedsolutions
o Disruptive driver shortage will focus solutions on driver experience and safety. Also, driver focused workflowmanagement tools and integration of route optimization
o B2B Market places that manage capacity and availability and that also allow for secondary exchange
o Integration of bespoke or siloed software packages into existing TMS or that provide a roadmap to newsolutions
Supply Chain Tech M&A Transactions($ in BN)
$14
$20
$56
$0
$10
$20
$30
$40
$50
$60
2021 1Q 2021 2Q 2021 3Q
$7
$27
$15
$26
$90
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
$90.0
$100.0
2017 2018 2019 2020 2021
Supply Chain Tech Trends & Capital Market Drivers for 2021
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 6
The Future: Expect More Consolidation in Fragmented Landscape6
D
SPACs can be an appealing route to the public markets for companies that prioritize valuation certainty, speed to
market and relative ease of transaction closure, most of which are absent from the traditional IPO process. They
are also a valuable alternative to later-stage venture capital and private equity by allowing access to potentially
greater liquidity sooner, making them an effective first step to an acquisition campaign to capitalize on industry
trends.
2021 saw witness to several high-profile SPACs in the supply chain space, particularly in autonomous trucking.
There were also notable SPACs in warehouse automation focused on end-to-end solutions providers, a trend we
expect to continue over the next 24 months along with key “tuck-in” transactions.
Cascadia expects solutions focused on the mid-mile and holistic warehouse management to be investor focus
areas over the next 24 months. These sub-sectors of the supply chain represent the most significant pain points
and, therefore, solution opportunities. Winners in these sub-sectors will develop differentiated solutions that
can quickly scale and address the challenges of a large and actionable Total Addressable Market (“TAM”).
Recent SPAC Transactions
$2.7B
Jul. 2021
$13B
Jul. 2021
$1.8B
Jun. 2021
$5.2B
Jun. 2021
$3.3B
May. 2021
$3.2B
Feb. 2021
$4.3
$1.8$1.3 $1.3
$1.0 $1.0$0.6 $0.5 $0.5 $0.3 $0.3 $0.3
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
AutonomousTrucks
Procurement& Sourcing
TruckingLogistics
ERP &Inventory
Management
ElectricTrucks
Warehousing& Fulfillment
WarehouseAutomation
Marine, Rail &Port Logistics
AssetTracking
Finance &Payments
SustainablePackaging
FleetManagement
$2B
Aug. 2021
Sources: Pitchbook data – As of September 2021, Cascadia Proprietary Information
Supply Chain Tech Trends & Capital Market Drivers for 2021
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 7
Supply Chain Tech Investments by Sub-Sector($ in BN)
SPACs Create Access to Liquidity and Acquisition Currency7
Near Term Investment Surge Across Supply Chain Technologies8
7
D
$1,897
$3,688
$5,392
Notable RAAI Financings
Jan 2021 July 2021
$130M Raise$80M Raise $46.7M Raise$95M Raise$61.5M Raise $80M Raise$31.4M Raise $90M Raise$31 Raise $90M Raise
$100M Raise $118M Raise$30M Raise$33M Raise$150M Raise $202M Raise $260M Raise $150M Raise$170M Raise
Venture capital was concentrated in autonomous trucking and middle mile
with roughly $3.1B YTD. Procurement and sorting followed closely with 16%,
while 11% of the capital went towards technologies in trucking logistics, and
ERP and inventory management at 10%. We see deals like ShipBoB,
KeepTrucking, and STORD driving significant value for the supply chain and
investors evolving their thesis on how this technology will revolutionize the
space.
Notable RAAI Transactions
Why It’s Notable: Zebra’s acquisition of Fetch Robotics continues to
demonstrate investors’ short-term focus on acquiring premium assets in
segments that have significant TAM and proven technology that can scale
Why It’s Notable: Berkshire Grey’s SPAC highlights a market opportunity for
warehouse automation providers using public markets to deliver on key pipeline
customers and integrate new technologies into the warehouse environment
acquired
by
Why It’s Notable: The acquisition of Ike highlights another significant deal in the
frenzy of consolidation in the autonomous trucking industry. Nuro saw an
opportunity to expand its product offering to integrate both long haul and last-
mile capabilities
acquired
by
Why It’s Notable: The acquisition of Llamasoft by Coupa highlights an
overarching theme of vertical specialization and software integration to
expand capabilities focused on supply chain optimization
Warehouse Technology
Enterprise
Supply Chain TechFreight Tech
($ in MM)
Jan – Sep 2021
Revolution Acceleration Acquisition
acquired
by
$50M Raise $50M Raise $200M Raise$100M Raise$125M Raise $46.6M Raise
$30M Raise$210M Raise $200M Raise
Total Financings: $~3B
acquired
byWhy It’s Notable: The Locus acquisition reinforces our theme of using acquisitions to
short-cut R&D timelines to deploy necessary technology that broadens capability,
product offerings and customer pipeline
Notable Transaction Highlights
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 8
Sources: Capital IQ, Pitchbook, MergerMarket, Industry Research
D
Date
ClosedTarget Company Buyer/Investor Company Sector
Enterprise
Value ($M)Revenue EBITDA
Sep-21 MOST (Logistics) Nexxiot(Stefan Kalmund) Logistics & Transportation Tech NA NA NA
Sep-21 Convey Project44 Enterprise Supply Chain $1,709.8 NA NA
Sep-21 FWRUN Diggipacks Logistics & Transportation Tech NA NA NA
Sep-21 Yimidida Huisen Suyun Logistics & Transportation Tech NA NA NA
Sep-21 Roadie (Logistics) United Parcel Service (NYS: UPS) Logistics & Transportation Tech NA NA NA
Sep-21 Oqton 3D Systems (NYS: DDD) Warehousing Tech $180.0 NA NA
Sep-21 BluJay Solutions Ltd E2open Parent Holdings, Inc. Enterprise Supply Chain $1,709.8 NA NA
Aug-21 VIA Motors Ideanomics (NAS: IDEX) Logistics & Transportation Tech $630.0 NA NA
Aug-21 Hudson Capital Inc. Freight App, Inc. Logistics & Transportation Tech NA NA NA
Aug-21 SupplyFrame, Inc. Siemens Aktiengesellschaft Enterprise Supply Chain $700.0 NA NA
Aug-21 Fetch Robotics, Inc. Zebra Technologies Corporation Warehousing Tech $305.3 30.5x NA
Jul-21 GlobalTranz Enterprises, Inc. Worldwide Express Operations, LLC Logistics & Transportation Tech NA NA NA
Jul-21 Proactis Holdings PLC DBAY Advisors; Pollen Street Capital Enterprise Supply Chain $129.2 2.6x NM
Jul-21 ASTI Mobile Robotics SA ABB Asea Brown Boveri Ltd Warehousing Tech NA NA NA
Jul-21 OmniPark FlashParking Logistics & Transportation Tech NA NA NA
Jun-21 QAD Inc. Thoma Bravo, L.P.; Thoma Bravo Fund XIV LP Enterprise Supply Chain $1,789.5 5.7x 64.8x
Jun-21 Boston Dynamics, Inc. Hyundai Motor Company Warehousing Tech $1,100.0 NM NA
Jun-21 Holded Technologies, S.L. Visma AS Enterprise Supply Chain $120.0 NA NA
Jun-21 Trucker Tools, LLC Alpine SG, LLC Logistics & Transportation Tech NA NA NA
May-21 CIM Industrial Systems A/S XANO Industri AB (publ) Enterprise Supply Chain $89.5 1.6x NA
May-21 Localz Pty Ltd Tyro Payments Limited Logistics & Transportation Tech $21.4 11.9x NM
May-21 NextShift Robotics Inc. JASCI LLC Warehousing Tech NA NA NA
Apr-21 Blue Yonder Group, Inc. Panasonic Corporation Enterprise Supply Chain $5,500.0 NA NA
Apr-21 rfxcel Corporation Antares Vision, Inc. Enterprise Supply Chain $150.0 8.8x NA
Apr-21 Vend Limited The Descartes Systems Group Inc Enterprise Supply Chain NA NA NA
Apr-21 Haven, Inc. The Toro Company Enterprise Supply Chain NA NA NA
Apr-21 Xirgo Technologies, LLC Sensata Technologies, Inc. Logistics & Transportation Tech $400.0 NA NA
Mar-21 ZigZag Global Ltd Lightspeed POS Inc. Enterprise Supply Chain NA NA NA
Mar-21 Left Hand Robotics, Inc. Global Blue Group Holding AG Warehousing Tech NA NA NA
Mar-21 CDK Global, Inc. Francisco Partners Management, L.P. Logistics & Transportation Tech $1,446.0 NA 15.0x
Feb-21 Negometrix B.V. Mercell Holding AS (nka:Mercell Holding ASA) Enterprise Supply Chain $27.0 4.5x NA
Feb-21 QuestaWeb, Inc. FourKites, Inc. Enterprise Supply Chain NA NA NA
Jan-21 Autotech Robotics Limited Machine Technology Group Warehousing Tech NA NA NA
Jan-21 Bombardier Transportation Alstom SA Logistics & Transportation Tech NA NA NA
Jan-21 Ike Robotics Inc. Nuro, Inc. Logistics & Transportation Tech NA NA NA
Dec-20 Synovos, Inc. Electrocomponents plc Enterprise Supply Chain $33.8 NA NA
Dec-20 Visma Commerce Mercell Holding AS (nka:Mercell Holding ASA) Enterprise Supply Chain $2,000.0 10.6x 21.3x
Dec-20 Yonomi, Inc. Allegion plc Warehousing Tech NA NA NA
Nov-20 Eucon GmbH VHV Vereinigte Hannoversche Logistics & Transportation Tech NA NA
Nov-20 LLamasoft, Inc. Coupa Software Incorporated Enterprise Supply Chain $1,398.3 NA NA
Nov-20 Kindred Systems, Inc Ocado Group plc Enterprise Supply Chain $286.6 168.6x NA
Oct-20 6 River Systems, Inc. Shopify Inc. Warehousing Tech $44,368.0 NA NA
Oct-20 Automile AB ABAX Sweden AB Logistics & Transportation Tech NA NA NA
Apr-19 Canvas Technology LLC Amazon.com, Inc. Logistics & Transportation Tech NA NA NA
Mean $3,110 27.2x 33.7x
Median $515 8.8x 21.3x
Recent & Notable M&A Transactions
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 9
Sources: Capital IQ, Pitchbook, MergerMarket, Industry Research
D
Date Target CompanyPost-Money
Value ($M)
Total Raised
($M)Current Round
Current Raise
($M)
Sep-21 Locus Robotics NA $312.5 Later Stage $50.0
Sep-21 STORD $1,125.0 $201.0 Series D $50.0
Aug-21 Zetwerk $1,500.0 $382.5 Series E $150.0
Aug-21 Point Pickup NA $84.1 Later Stage $39.7
Aug-21 Osaro $115.0 $56.8 Series C $30.0
Aug-21 Rapid Robotics $193.7 $54.2 Series B $36.7
Aug-21 Swyft NA $5.1 Later Stage NA
Aug-21 Agora(Business/ Productivity Software) NA $44.0 Series B $33.0
Aug-21 Third Wave Automation $135.0 $59.0 Series B $40.0
Jul-21 Invia Robotics $150.0 $60.2 Series C $30.0
Jul-21 Covariant $530.0 $147.0 Series C $80.0
Jul-21 Interos $1,000.0 $125.9 Series C $100.0
Jul-21 Fetch Package $169.2 $81.5 Series C $50.0
Jul-21 Path Robotics $750.0 $171.0 Series C $100.0
Jul-21 XYZ Robotics NA $63.0 Series B $35.0
Jul-21 NewStore $346.7 $155.4 Series B1 $46.7
Jun-21 ShipBob $1,125.0 $330.7 Series E $200.0
Jun-21 LocoNav NA $43.0 Series B $37.0
Jun-21 RoadSync NA $38.2 Series B $30.0
Jun-21 Sendle NA $71.9 Series C $35.0
Jun-21 RoboCorp Technologies $151.0 $32.0 Series A $21.0
Jun-21 Cargomatic $390.0 $147.7 Series B $90.0
Jun-21 Finite State $115.0 $52.5 Series B $30.0
Jun-21 Xeneta $130.0 $55.5 Series C $28.5
Jun-21 KeepTruckin $2,300.0 $439.3 Series E $210.0
Jun-21 Bringg $1,000.0 $187.0 Series E $100.0
Jun-21 PayCargo NA $160.0 Series B $125.0
Jun-21 Forto $1,400.0 $366.8 Series C $240.0
Jun-21 Faire $7,000.0 $695.5 Series F $260.0
Jun-21 Nexxiot NA $105.0 Later Stage $25.0
Jun-21 Gideon Brothers NA $44.9 Series A $31.0
Jun-21 Realtime Robotics $66.4 $35.4 Series A $31.4
Jun-21 GreyOrange NA $174.2 Later Stage $35.3
Jun-21 Locus (Logistics) $300.0 $82.5 Series C $50.0
Jun-21 Shippo $1,000.0 $153.6 Series E $50.0
Jun-21 Project44 $1,200.0 $412.5 Series E $202.0
Jun-21 Sennder $1,451.4 $340.4 Series D $240.0
May-21 Waybridge $125.0 $40.0 Series B $30.0
May-21 Optimal Dynamics $64.1 $22.9 Series A $18.4
May-21 Zencargo $181.8 $70.1 Series B $41.6
May-21 Path Robotics $235.0 $171.0 Series C $56.0
Recent & Notable Financings
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 10
Sources: Capital IQ, Pitchbook, MergerMarket, Industry Research
D
Date Target CompanyPost-Money
Value ($M)
Total Raised
($M)Current Round
Current Raise
($M)
Apr-21 Plus One Robotics $103.0 $43.6 Series B $33.0
Apr-21 Multiply Labs $64.5 $25.2 Series A $25.0
Mar-21 STORD $510.0 $111.0 Series C $65.0
Mar-21 Idelic $75.0 $31.3 Series B $20.0
Mar-21 FourKites $750.0 $198.4 Series D $100.0
Mar-21 Tradeshift $2,700.0 $839.5 Series F $200.0
Mar-21 Nimble Robotics $123.5 $50.0 Series A $50.0
Mar-21 Clobotics NA $78.9 Early Stage $30.9
Feb-21 Symbio $70.0 $47.7 Series B $30.0
Feb-21 Shippo $515.0 $103.0 Series D $45.0
Feb-21 Reverselogix $60.0 $20.0 Series A $20.0
Feb-21 Locus Robotics $1,000.0 $262.4 Series E $150.0
Feb-21 Slync $240.0 $79.2 Series B $60.0
Feb-21 UiPath (NYS: PATH) $35,000.0 $1,952.2 Series F $750.0
Feb-21 Inxeption $750.0 $112.0 Series D $61.5
Jan-21 Airspace Technologies $238.0 $68.5 Series C $38.0
Jan-21 Oqton NA $40.0 Series A $40.0
Jan-21 Flexe $530.0 $143.6 Series C $80.0
Median $347 $83 $46
Mean $1,488 $178 $84
Recent & Notable Financings
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 11
Sources: Capital IQ, Pitchbook, MergerMarket, Industry Research
D
EV / LTM Revenue Median Multiples by Sector
EV / LTM EBITDA Median Multiples by Sector
LTM Median: 4.8x
NTM Median: 4.2x
LTM Median: 19.1x
NTM Median: 15.0x
Public Company Update
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 12
Sources: Capital IQ – As of 10/5/21
D
($USD in millions) Enterprise LTM LTM EBITDA EV / Revenue EV / EBITDA
Company Value Revenue EBITDA Margin LTM LTM
Supply Chain and Logistics Technology
Oracle Corporation $287,828 $39,403 $18,117 46.0% 7.3x 15.9x
SAP SE 166,647 33,441 8,395 25.1% 5.0x 19.9x
Constellation Software Inc. 35,600 3,969 887 22.3% 9.0x 40.1x
WiseTech Global Limited 12,169 357 134 37.6% 34.1x N/M
Manhattan Associates, Inc. 9,472 586 137 23.3% 16.2x N/M
Aspen Technology, Inc. 8,322 681 372 54.7% 12.2x 22.3x
The Descartes Systems Group Inc 6,531 349 153 43.9% 18.7x 42.7x
Kinaxis Inc. 3,577 224 11 4.8% 16.0x N/M
American Software, Inc. 704 112 6 5.7% 6.3x N/M
Tecsys Inc. 625 92 9 10.0% 6.8x N/M
Median $8,897 $471 $145 24.2% 10.6x 22.3x
Mean $53,147 $7,921 $2,822 27.3% 13.1x 28.2x
Fleet Management and Fulfillment
United Parcel Service, Inc. $171,670 $84,628 $10,292 12.2% 2.0x 16.7x
CSX Corporation 82,512 10,583 6,257 59.1% 7.8x 13.2x
Trimble Inc. 21,468 3,148 743 23.6% 6.8x 28.9x
XPO Logistics, Inc. 16,197 16,252 1,771 10.9% 1.0x 9.1x
C.H. Robinson Worldwide, Inc. 12,897 16,207 932 5.8% 0.8x 13.8x
Kerry Logistics Network Limited 5,411 6,882 665 9.7% 0.8x 8.1x
Clipper Logistics plc 1,311 855 59 6.9% 1.5x 22.3x
Singapore Post Limited 1,000 1,035 89 8.6% 1.0x 11.2x
VSE Corporation 907 662 47 7.1% 1.4x 19.3x
Radiant Logistics, Inc. 378 847 47 5.5% 0.4x 8.1x
PowerFleet, Inc. 288 114 7 6.0% 2.5x 42.7x
Xpediator Plc 158 302 16 5.3% 0.5x 9.8x
Median $3,361 $2,092 $377 7.9% 1.2x 13.5x
Mean $26,183 $11,793 $1,744 13.4% 2.2x 16.9x
Diversified Industrial Technology
Danaher Corporation $229,636 $22,284 $9,037 40.6% 10.3x 25.4x
Honeywell International Inc. 158,200 32,637 8,340 25.6% 4.8x 19.0x
Roper Technologies, Inc. 55,329 5,527 2,168 39.2% 10.0x 25.5x
AMETEK, Inc. 31,219 4,540 1,426 31.4% 6.9x 21.9x
Fortive Corporation 26,683 4,634 1,204 26.0% 5.8x 22.2x
Teradyne, Inc. 16,706 3,121 1,192 38.2% 5.4x 14.0x
IDEX Corporation 16,425 2,352 680 28.9% 7.0x 24.1x
Siemens Limited 10,111 1,415 207 14.6% 7.1x 48.9x
ESCO Technologies Inc. 2,064 724 129 17.8% 2.8x 16.0x
Median $26,683 $4,540 $1,204 28.9% 6.9x 22.2x
Mean $60,708 $8,582 $2,709 29.1% 6.7x 24.1x
Public Company Multiples
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 13
Sources: Capital IQ – As of 10/5/21
D
($USD in millions) Enterprise LTM LTM EBITDA EV / Revenue EV / EBITDA
Company Value Revenue EBITDA Margin LTM LTM
Automation
Honeywell International Inc. $158,200 $32,637 $8,340 25.6% 4.8x 19.0x
Schneider Electric S.E. 104,214 30,776 6,016 19.5% 3.4x 17.3x
ABB Ltd 69,832 26,134 3,621 13.9% 2.7x 19.3x
Emerson Electric Co. 60,996 16,795 3,962 23.6% 3.6x 15.4x
Rockwell Automation, Inc. 35,720 6,211 1,340 21.6% 5.8x 26.7x
Fanuc Corporation 33,835 4,816 1,788 37.1% 7.0x 18.9x
Ocado Group plc 16,545 3,108 17 0.6% 5.3x N/M
OMRON Corporation 16,298 6,291 859 13.7% 2.6x 19.0x
KION GROUP AG 13,875 10,204 1,713 16.8% 1.4x 8.1x
YASKAWA Electric Corporation 12,420 3,652 448 12.3% 3.4x 27.7x
Daifuku Co., Ltd. 10,397 4,570 476 10.4% 2.3x 21.8x
Siemens Limited 10,111 1,415 207 14.6% 7.1x 48.9x
Yokogawa Electric Corporation 4,050 3,651 426 11.7% 1.1x 9.5x
KUKA Aktiengesellschaft 3,659 3,148 94 3.0% 1.2x 38.8x
ATS Automation Tooling Systems Inc. 3,243 1,097 171 15.5% 3.0x 19.0x
iRobot Corporation 1,829 1,430 139 9.7% 1.3x 13.2x
Median $15,087 $4,693 $667 14.2% 3.2x 19.0x
Mean $34,702 $9,746 $1,851 15.6% 3.5x 21.5x
Industrial IoT
Cisco Systems, Inc. $216,895 $48,026 $15,496 32.3% 4.5x 14.0x
Hexagon AB (publ) 41,145 4,605 1,690 36.7% 8.9x 24.4x
Xilinx, Inc. 34,785 3,053 978 32.0% 11.4x 35.6x
Zebra Technologies Corporation 27,649 4,448 1,097 24.7% 6.2x 25.2x
Trimble Inc. 21,468 3,148 743 23.6% 6.8x 28.9x
PTC Inc. 15,110 1,531 404 26.4% 9.9x 37.4x
Sensata Technologies Holding plc 11,187 3,046 843 27.7% 3.7x 13.3x
Altair Engineering Inc. 5,401 470 43 9.2% 11.5x N/M
Impinj, Inc. 1,300 139 (38) (27.2%) 9.4x N/M
Digi International Inc. 629 290 36 12.6% 2.2x 17.3x
Sierra Wireless, Inc. 465 449 (38) (8.5%) 1.0x N/M
CalAmp Corp. 460 279 25 8.8% 1.6x 18.8x
PowerFleet, Inc. 288 114 7 6.0% 2.5x 42.7x
MiX Telematics Limited 241 129 37 28.5% 1.9x 6.6x
Lantronix, Inc. 172 68 2 2.9% 2.5x N/M
Median $5,401 $470 $43 23.6% 4.5x 24.4x
Mean $25,146 $4,653 $1,422 15.7% 5.6x 24.0x
Median $12,294 $3,115 $462 16.2% 4.8x 19.1x
Mean $37,491 $8,447 $2,008 19.1% 5.8x 22.1x
Public Company Multiples
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 14
Sources: Capital IQ – As of 10/5/21
D
Cascadia Capital will be attending the following conferences and events in the upcoming
months. Please contact us directly to schedule an introduction or meeting.
Date Conference Location Website
Q4 2021
10/12/21 -10/14/21
Autonomous Mobile Robots & Logistics Conference
Memphis, TN Details
11/02/21 -11/04/21
NextGen Supply Chain Conference
Virtual Conference
Details
Q1 2022
01/31/21 -02/02/22
MODEX 2022Atlanta's Georgia World Congress Center
Details
03/28/22 -03/31/22
A3 Business Forum Orlando, FL Details
Q2 2022
05/02/22 -05/04/22
Cascadia Capital: Robotics, Automation and AI Conference
Pittsburgh, PA Details
07/18/21 -07/21/21
ICRA 2022 : IEEE International Conference on Robotics and Automation
Philadelphia, PA Details
06/06/22 -06/09/22
Automate Detroit, MI Details
Catch Us at these Conferences & Events
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 15
D
Cascadia | Leading Diversified Investment Bank
• Founded in 1999, Cascadia has a successful 20-year history
• M&A, private placements, advisory services
• Specialized in-depth expertise across multiple industry verticals
Strategic Advisory Services
Private Capital
Mergers & Acquisitions
Debt & Equity Capital Raises
Cascadia | Dedicated Robotics, Automation, and AI TeamCascadia Capital is one of the first investment banks in the country to have a dedicated practice group to serve
emerging growth companies in Robotics, Automation and Artificial Intelligence (“RAAI”). Recognizing the myriad of
industries that will be upended by RAAI technology in the coming decade, Cascadia’s RAAI group will meet the
growing demand for M&A and capital raising services in the market by tapping the firm’s existing industry
expertise.
Michael ButlerChairman & CEO
[email protected](206) 436-2530
Jamie BoydManaging Director
[email protected](206) 436-2514
Firdaus PohowallaManaging Director
[email protected](206) 436-2578
70+ OVER410+
Investment
Banking
Professionals
Completed
Transactions
Transactional
Value$15.5
BILLION
Cascadia | Select Robotics, Automation, and AI Team Information
Yee LeeSenior Vice President
[email protected](206) 436-2544
Jason LippenbergerVice President
[email protected](206) 436-2542
Cascadia | Recent RAAI & Technology Transactions
About Cascadia’s Robotics, Automation, & AI Practice
For more information on this report or Cascadia Capital’s RAAI coverage, please contact us or visit cascadiacapital.com 16