We are more and more interested in vertical integrators — companies that leverage a tech-first, vertically integrated model to transform traditional physical industries.
→ Instead of simply selling tech solutions to established players, these companies build and deploy their own technology, allowing them to compete directly with them and tap into much larger markets.
→ Basically, you don’t sell hardware/software anymore, but you sell the final product/service. While some include only actors who use proven technologies to deliver the product, I’ll also include those who have developed new technologies and built physical factories around them.
Much has been written on this trend (see here and here), so I’ll only highlight some promising ideas/companies making strides in this space. The goal is to help people ideating on this (whether by copying or spotting unmet opportunities). If you’re excited about these opportunities and the tech risks they bring, feel free to reach out at thomas@ovni.capital.
Across these examples, the key technologies tend to focus on:
- Material science and molecular/chemical engineering (i.e. Solugen)
- Process optimization and automation in manufacturing (i.e. Hadrian, Anduril)
- Predictive maintenance and autonomous operations (i.e. Base Power Company)
- Robotic automation to deliver final product/service (Gatik, Monumental Labs)
- Integrated data analytics and decision-making (Kobold Metals, Koloma)
Here are some ideas/examples:
1. Advanced Cement & Concrete Production
- Compare to: Traditional cement and concrete producers like Lafarge, Holcim, Cemex
- Key AI applications: Predictive maintenance, process optimization, novel material design
- Opportunity: Develop and manufacture advanced cement and concrete mixes with lower carbon emissions, higher durability, and improved performance. Vertically integrate from material production to construction services.
- Examples: Sublime Systems, Brimstone, Furno
2. Smart Home Energy Management
- Compare to: Traditional HVAC manufacturers and home energy service providers
- Key AI applications: Predictive load forecasting, real-time home energy optimization, autonomous control
- Opportunity: Offer an end-to-end home energy management system including smart appliances, distributed energy storage, and AI-powered optimization. Provide hardware, software, and energy services in a vertically integrated model.
- Examples: Span, Airform, The Base Power Company
3. Precision Aquaculture
- Compare to: Traditional fish farming operators and seafood producers
- Key AI applications: Fish health monitoring, Fish processing, feeding optimization, water quality management
- Opportunity: Develop and operate highly automated, AI-powered aquaculture facilities focused on high-value species. Integrate fish production, processing, and distribution.
- Example: Shinkei
4. Advanced Manufacturing
- Compare to: Petrochemical companies and traditional plastics producers
- Key AI applications: Molecular design, fermentation process optimization, waste upcycling
- Opportunity: Leverage AI to engineer and manufacture high-performance, sustainable raw materials from renewable feedstocks. Integrate R&D & production.
- Examples: Aircarbon, Solugen, baCta, Lanzatech
5. Smart Mining/exploration & Refining
- Compare to: Incumbent mining conglomerates and mineral processors, exploration companies
- Key AI applications: Autonomous drilling/excavation, predictive maintenance, mineral beneficiation
- Opportunity: Deploy AI-powered mining and refining operations to extract critical minerals more efficiently and sustainably. Integrate exploration, extraction, and processing.
- Examples: KoBold Metals, Earth AI, Lithosquare
6. Advanced Nuclear Reactor Design
- Compare to: Traditional nuclear power companies and equipment suppliers
- Key AI applications: Reactor simulation, materials science, autonomous control systems
- Opportunity: Leverage new reactor designs to develop safer, more efficient nuclear power solutions. Integrate reactor design, manufacturing, and operations.
- Examples: Helion Energy, Radiant
7. Intelligent Building Materials / Construction companies
- Compare to: Construction materials suppliers and building product manufacturers.
- Key AI applications: Predictive maintenance, energy optimization, material science
- Opportunity: Engineer and produce smart, sustainable building materials with robotic automation. Integrate manufacturing, installation, and building management.
- Examples: Diamond Age, Monumental Labs, Monumental
8. Intelligent Infrastructure Inspection
- Compare to: Engineering/inspection firms and government agencies
- Key AI applications: Computer vision, predictive maintenance, digital twins
- Opportunity: Provide AI-powered infrastructure monitoring and maintenance services, and autonomous inspection. Manage the entire inspection and repair lifecycle.
- Example: Gecko Robotics
9. Smart Lumber Manufacturing
- Compare to: Sawmill operators (Weyerhaeuser, Westfraser, Interfor)
- Key application: Integrate lumber processing, inventory, and supply chain under a single tech platform, leverage AI-powered design and forecasting to tailor products for specific construction needs
- Opportunity: By applying advanced analytics and automation across the entire manufacturing lifecycle, it is possible to achieve significant efficiency, quality, and sustainability improvements over legacy sawmill and lumber production models.
- Example: The Lumber Manufactory
There are unlimited opportunities, from new component manufacturing to advanced defense systems, blending hardware and software to deliver better products faster.
I’d love to hear any additional ideas you might have. Again, ping me at thomas@ovni.capital
