How did Germany become the holy land of top robotics technology?
2024-06-14 / tech
As an investor, in the United States I have seen countless companies seeking funding. While most American capital flows to Silicon Valley, my team and I have always kept a close eye on unique opportunities in other parts of the world. In our private equity investments, innovation and creativity are always our focus, while we do not overlook the overall condition of a company.
One thing that is particularly important to me is culture—both the internal culture of a company and the cultural environment of the place where the company is located. This is because ways of thinking and cultural factors (which are different from prejudices) are key to success.
Recently, I invested in a German company (which I will introduce in detail later), which has piqued the curiosity of other investors. Here, I would like to share a few reasons, such as why Germany is an ideal place for us to invest in a robotics company.
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The German economy is healthy, strong, forward-looking, and full of innovative spirit.
Germany is unique in many ways. The backbone of the German economy is mainly composed of small and medium-sized enterprises (accounting for more than 90%), which is very rare globally. Germany has a huge industrial sector, focused on product manufacturing, and is known for its extreme attention to detail and excellent design.
It is these factors that have convinced me that investing in Germany is a wise move, unaffected by the fluctuations that any large economic country may experience over decades.
If someone designs and manufactures robots in Germany, I know they can rely on the country's unique engineering culture and educational background. Look at the global automotive market, German brands have always been leading in precision and design.
For years, we have been hearing that the German automotive market is about to die out. However, year after year, we see that this has not happened.
Indeed, we have long heard that the German automotive market will decline, but year after year this has not happened. German cars are known worldwide for their excellent performance, impeccable design, and precise reliability. The automotive industry has adapted to market changes and continues to raise the bar in the field of electric vehicles. If you need a reliable car, choosing a German car is undoubtedly an excellent choice.
Therefore, an obvious conclusion is: if I want a robot with excellent performance, perfect design, and solid structure, then Germany's rich engineering and production experience is indispensable. I hope my robot can be as reliable, precise, and flawless as Audi, BMW, or Mercedes. So, when I plan to invest in a robotics company, I see Germany as a huge advantage in the investment location, not a problem.Silicon Valley and Germany: My Pursuit of the Perfect Blend
The entrepreneurial environment of Silicon Valley is undoubtedly world-renowned. However, I must admit that for an investor, there are also some issues here. In Silicon Valley, there is often an overemphasis on superficial showmanship. There are many promises, but they are frequently overstated. Hype is a common occurrence, and sometimes it is difficult to discern whether this hype has a solid foundation. If a project fails after a year, who will care? They will easily start anew and try again. In the United States, 70% of venture capital investments are made in Silicon Valley—investors can almost always be found here.
This has always caused me some concern. I want to be able to trust that the companies I invest in are making long-term plans and well-considered decisions. I want to know if the founders have clearly mapped out the next 12, 24, 36 months. Prudence and planning are the cornerstones of sustained success, regardless of how much hype surrounds a team.
In Germany, I have found this culture. There, prudence is seen as a universal virtue, and there is no excessive boasting about great inventions and successes. Germany is the birthplace of the concept of "hidden champions." Whenever I encounter investment opportunities in Germany, I am always surprised by the modest demands of local companies. But when I inquire about their 24-month plan, I find that everything has been meticulously planned and prepared—this is in stark contrast to the often opposite approach of many startups in Silicon Valley.
However, this is a double-edged sword. Without hype, attention-grabbing, and grand dreams, you must dig deep to find truly great companies. Finding the pearl requires first peeling away the shell—this is a time investment that many investors are unwilling to make. I am willing to invest this time and have found a company that meets all the criteria and has truly achieved something in the field of robotics: Neura Robotics.
Neura Robotics Combines Robotics with Artificial Intelligence
When I first met David Reger, the founder and CEO of Neura Robotics, I was surprised by his hug during our initial business meeting. This is not common in German business settings. His enthusiasm and entrepreneurial spirit left a deep impression on me, and the talented team around him is equally admirable. He has successfully attracted many outstanding engineers, business people, and project managers, which I consider the first point of interest in this project.
However, what truly打动了我 was their product—more accurately, their vision. Although robots have existed in industrial fields such as assembly lines and factories for a long time, modern forms of artificial intelligence are relatively new. Neura Robotics has introduced a series of robots integrated with artificial intelligence technology, known as cognitive robots. These machines are already capable of acting independently with foresight and learning how to deal with the chaos and unpredictability outside of industrial facilities. Such robotic technology is expected to enter homes and businesses, actively supporting people's daily lives.
For more German "future hidden champions" technology and high-quality German industrial products, please visit Deku Smart Link [link].The vision behind this deeply captivated me. It's not about reinventing the wheel, but realizing that the wheel already exists, and now we can use it in entirely new ways. Why can't the robots that assemble cars help clean the dishwasher? Of course, there is no reason against it. Yet, no one has thought of robots as a universal platform until David Reger. If anyone has ever had such a thought, then David is at least the only one I know who has proven its feasibility within just two years.
David envisions a future where robotics combined with artificial intelligence ushers us into an entirely new world. In this world, robots act as personal assistants, taking over the heavy physical labor across various industries, assisting humanity. He realized that ChatGTP is great but lacks a physical presence. He decided to change this through Neura Robotics, and I chose to invest because I firmly believe that Neura Robotics will not only succeed in this field but also that Germany as a whole will gain significant market share in this emerging sector.
Why I am excited about the future:
Germany has tremendous growth potential in the field of robotics. Known for its excellent design and engineering, as well as its meticulous approach to work, these are the secrets to its success. As the world's fourth-largest economy, Germany has the capability to drive innovation and spread it globally.
I look forward to a future where Germany and companies like Neura Robotics become synonymous with advanced robotics development and manufacturing. From my observations, Germany is currently in a wonderful incubation phase, expected to bring a wave of robotics technology to the country in the coming years. Of course, for entrepreneurs like David to realize their vision, appropriate adjustments in the political and social environment are essential.
Not only as an investor but also as someone with foresight and interest, I am very curious whether this industrial powerhouse of Germany can recognize and seize the excellent opportunities in the field of robotics technology.
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